The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) targets a 29 per cent growth in profit before tax to VND13.2 trillion (US$562.8 million) this year and continues with its “high and sustainable growth” plan.

It also targets a 25 per cent increase in assets to VND520 trillion (US$22.2 billion) and 25 per cent and 24 per cent growth in deposits and loans outstanding to VND460 trillion ($19.6 billion) and VND333.5 trillion ($14.2 billion) (in line with the credit growth target prescribed by the State Bank of Viet Nam).

Its return on equity and return on assets are expected to rise to 24.5 per cent and 2.3 per cent.

Its NPL ratio will stay below 2 per cent.

These targets and a number of other plans and proposals, including profit distribution plans, were approved at its annual general meeting held in HCM City on April 26.

Pham Quoc Thanh, its CEO, said HDBank always focuses on risk management, constantly strengthening its systems and processes and using technology to monitor, forecast and promptly identify risks.

Despite the market volatility last year, all of HDBank’s activities went smoothly, with its safety performance indicators meeting State Bank of Viet Nam norms.

Its standalone NPL ratio was only 1.3 per cent and the consolidated rate was 1.67 per cent, low compared to industry averages.

The return on equity and return on assets were 23.5 per cent and 2.1 per cent, both higher than last year and among the highest in the sector.

Its capital adequacy ratio, stipulated for lenders under the Basel II agreements, was 13.4 per cent, among the highest in the industry.

Its ratio of outstanding loans to deposits was 76.6 per cent, lower than the maximum ratio of 85 per cent prescribed by the SBV.

Its profit before tax was an all-time high VND10.27 trillion, 24 times up from 10 years earlier.

Its total assets exceeded VND416 trillion ($17.7 billion), 7.8 times up from 2012.

Shareholders approved dividends of 25 per cent in cash and shares for 2022.

This year HDBank continues to pursue its sustainable development orientation and strategy to become a leader in retail, small and-sized medium enterprises and consumer banking, creating sustainable assets for itself and for society, Thanh said.

It will roll out more products and services targeting industries and sectors that are key contributors to economic growth such as agriculture and rural development, green financing, manufacturing and trading, renewable energy, waste treatment and recycling in addition to focusing on retaining its leading position in supply chain financing.

The bank will continue to offer preferential loans to those affected by the pandemic and workers and for digititisation of business and operations.

It will be a pioneer in applying Basel III standards in corporate governance and adopt internal risk management regulations and others to further improve its operations.

This year will continue to be a challenging one, but with its growing reputation, solid financial potential, modern technology, and the right development strategy for each stage, HDBank is confident of achieving the targets approved by shareholders, Nguyen Thi Phuong Thao, HDBank’s deputy chairwoman, said. — VNS