An HDBank transaction office in HCM City. — Photo courtesy of HDBank

The HCM City Development Joint Stock Commercial Bank (HDBank, HOSE: HDB) has reported impressive results in the third quarter of the year, with pre-tax profits increasing by a record 51 per cent year-on-year to over VND1.23 trillion (US$53.4 million).

Total operating income was VND2.87 trillion ($123.88 million), a year-on-year increase of 36 per cent.

Net interest income accounted for VND 2.5 trillion ($108.09 million), up 42 per cent, and net income from services contributed VND149 billion ($6.4 million), up 29 per cent compared to the third quarter of 2018.

Operating costs were well controlled and increased by only 12 per cent. Expenses for bad debts were low thanks to high asset quality.

The non-performing loan ratio for the parent bank was only 1.1 per cent, and the consolidated non-performing loan ratio, including the consumer finance operations, was 1.5 per cent.

This is a low level of bad debts, something that HDBank has controlled well over the years.

In the first nine months consolidated pre-tax profit reached nearly VND3.45 trillion ($149.1 million), a year-on-year increase of 20 per cent, also a record.

The total operating income was more than VND8.04 trillion ($347.03 million), up 19 per cent, with net interest income accounting for over VND6.8 trillion ($295.6 million), up 25 per cent.

Net income from services was over VND435 billion ($18.75 million), up 28 per cent over the same period last year.

Return on equity and return on assets were 20.2 per cent and 1.7 per cent, among the highest of any listed bank.

The net interest margin increased sharply to 4.6 per cent.

As of September 30 HDBank’s total assets were worth VND217.2 trillion.

It had deposits of VND193.14 trillion and outstanding loans of VND146.47 trillion, the latter representing a 16.5 per cent increase from the same period last year.

Retail banking and financing for small and medium-sized enterprises continued to be key growth drivers.

With its strong capital resources and excellent risk management capability, HDBank has received approval from the State Bank of Viet Nam to adopt Basel II standards ahead of schedule.

The capital adequacy ratio (CAR) as of September 30 was 11 per cent.

Green Credit and Digital Banking

HDBank is a pioneer in providing ‘green’ credit, supporting renewable energy projects and high-tech agricultural projects.

As of September 30 it had set aside nearly VND10 trillion ($432.38 million) to finance commercial solar power projects and rooftop solar power with a total capacity of 725 MWp.

HDBank has also speeded up its digital banking transformation to offer customers a more convenient and safer experience and make its operations more efficient.

Many utilities offered by the bank in its mobile banking application are deeply appreciated by users.

They include instant money transfer, electricity, water, telephone, Internet, and cable TV bill payment, payment of loans, card services, booking air tickets on more than 30 domestic and international airlines, and purchase of train and film tickets. — VNS