An HDBANK transaction office in HCM City. The lender has achieved excellent business results in the first half of the year despite the market being affected by the Covid-19 outbreak. — Photo courtesy of the bank

The HCM City Development Joint Stock Commercial Bank (HOSE: HDB) achieved excellent results in the first half of the year, with pre-tax profit increasing by 31.5 per cent year-on-year to VND 2.908 trillion (US$125.03 million), and meeting 51.4 per cent of the 2020 target.

Its asset quality was among the best in the industry with its non-performing loan ratio at just 1.1per cent, the lowest in the banking industry.

It has redeemed all the bonds it sold to the Vietnam Asset Management Company (VAMC) before schedule.

In addition to maintaining the quality of its assets, the bank also strengthened its financial health with its capital adequacy ratio (CAR) easily meeting Basel II standards after increasing from 10.6 per cent to 11.5 per cent.

Its deposits were worth VND312.923 trillion ($13.45 billion) and total outstanding loans were VND168.772 trillion ($7.26 billion), an increase of 10.3 per cent year-on-year.

Its total consolidated operating income was VND6.346 trillion ($237.19 million), up 22.7 per cent, of with net interest income being worth VND5.664 trillion ($243.08 million), up 30.1 per cent.

It also achieved positive growth in its services and securities business investment.

Its operating expenses were effectively managed at VND2.738 trillion, helping to reduce the cost-to-income ratio from 47 per cent in the same period last year to 43.1 per cent.

In the first six months of the year the bank increased its risk provision to settle the debts it had sold to the VAMC and added resources for dealing with credit risk if incurred. Provisions increased by VND168 billion to VND700 billion.

Return on equity (ROE) and return on assets (ROA) were 21.6 per cent and 1.97 per cent, sharp increases from the same period last year.

The ratio of short-term capital to medium- and long-term loans was only 21 per cent, which continued to place it in the group of banks with the highest capital adequacy and liquidity rates.

HDBank opened eight new branches and transaction offices in the first half, increasing the number to 294.

HD SAISON expanded its distribution system to 18,025 transaction points, maintaining its leading position among consumer finance companies in terms of distribution network.

Joining community to overcome pandemic, achieve sustainable growth

HDBank enjoyed rapid yet sustainable business growth despite the difficulties caused by the Covid-19 pandemic and other unfavourable factors, proving its solid foundation, proactive nature and flexibility in responding to challenges.

At a time when the economy has entered a new normal stage, HDBank has undertaken risk management programmes to ensure its operational safety, and at the same time offered credit packages at preferential interest rates and reduced or waived fees to help customers overcome difficulties caused by the pandemic.

The bank has earmarked VND24 trillion ($1.03 billion) to lend to SMEs, VND10 trillion ($430.48 million) for micro businesses, individual business households and individual customers to expand production and trading, invest in high-tech agriculture, clean agriculture, renewable energy, and others.

In addition to credit products, the bank has also deployed many modern technology-based services to add more utilities on its mobile banking and internet banking platforms, and digitized its internal and transaction processes towards transforming into a digital and paperless bank.

It is a pioneer in opening business accounts online with digital signatures, and was also the first bank in Viet Nam to join the TradeAssets Trade Finance E-marketplace to connect and process trade finance transactions on the blockchain application platform.

Recently, it has launched international money transfer query services via Swift GPI, helping customers update information quickly and accurately about the status of their transactions.

HDBank was recently named one of the Best Companies to Work for in Asia by HR Asia, one of Asia’s leading publications for HR professionals, for a third consecutive year. — VNS