Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – ticker code HDB) has announced its business results for the first half of 2022, with profit before tax reaching VNĐ5.304 trillion (US$227.4 million), up 26.5 per cent year-over-year, and meeting 54 per cent of its full-year plan.

The parent bank’s fee income rose 113 per cent year-on-year and separate non-performing loan ratio was only 0.93 per cent.

Building on the encouraging results of the first quarter, in the second quarter all key performance indicators of HDBank, including quantitative and qualitative indicators, rose significantly.

Consolidated total operating income and profit before tax reached VNĐ5.582 trillion ($239.16 million) and VNĐ2.776 trillion ($118.94 million) in Q2, up 31.2 per cent and 32.6 per cent year-over-year, respectively.

Cumulatively, for the first half of 2022, total operating income reached VNĐ10.704 trillion, up 27.1per cent year-on-year, in which net interest income rose by 25.8 per cent year-on-year, non-interest income rose by 32.6 per cent year-on-year.

The bancassurance and other cashless payment services achieved robust growth with net fee income doubling that of the same period last year.

HDBank has well-managed expenses and implemented technologies to improve productivity and enhance risk management, resulting in the modest increase of just 19.4 per cent year-over-year in operating expenses.

Cost-income ratio improved to 37 per cent from 39.4 per cent a year earlier. Profitability ratios including ROAE and ROAA were 25.6 per cent and 2.24 per cent respectively, which are higher than those of last year.

Prudential ratios are at healthy levels with CAR (under Basel II) reached 14.9 per cent - the market-leading level.

The parent bank’s NPL ratio was 0.93 per cent and loan loss reserve ratio reached the comfortable level of 109 per cent.

HDBank is implementing the plan to raise charter capital as approved by AGM by issuing about 503 million shares to distribute its 2021 dividend by stocks, at the payout ratio of 25 per cent.

Upon completion, charter capital will increase to VNĐ25.303 trilion from VNĐ20.273 trillion. The re-investment of retained earnings into the bank’s business activities will further strengthen its financial capability, making it ready for strong business growth and profit generation according to the strategy approved by shareholders.

As of June 30, total mobilised funds exceeded VNĐ340 trillion. Total consolidated lending reached over VNĐ245 trillion, up 14.8 per cent from that of the end of last year. Customers, including those in rural areas, exporters, supply chain clients, household businesses, micro-businesses and those eligible for green finance programmes, all enjoyed HDBank’s favourable lending programmes.

In addition to strong business performance, HDBank is also paying great attention to its corporate social responsibility. The bank collaborated with Tuổi Trẻ (Youth) Newspaper to launch the cashless payment fair for workers in industrial zones to provide them with the chance to experience cashless payment solutions and online account opening.

HDBank also contributed in the financing for house construction to honour and show appreciation of families who made great contribution to national revolution, supported localities vulnerable to floods and storms in central provinces, awarded scholarships to underprivileged students who achieved good performance at universities.

Positive operating results achieved in the first six months of 2022 showcased HDBank’s capability to effectively implement business plans and digitial transformation to further improve productivity, customer experience and create synergy effects among all members within the large ecosystem of the group.

This is also a sign that the strategy to achieve strong growth both in business scale and quality in a new development period is gradually being realised and has resulted in good value to shareholders and investors. — VNS