The Ho Chi Minh City Development Joint Stock Commercial Bank has announced its results for 2022, which show it exceeded all its targets and achieved high growth.

Its profit before tax was VND10.27 trillion (US$435.8 million), up 27.2 per cent from 2021 and 105 per cent of the target approved by sharehoders.

Its net fee income grew dramatically, while its prudential and profitability ratios were among the best in the industry.

The total operating income topped VND5.87 trillion ($249.1 million) for the fourth quarter and VND21.97 trillion ($933 million) for the entire year, a year-on-year increase of 26.8 per cent and 31.1 per cent.

The net interest income grew by 29.7 per cent and the net fee income by 53.4 per cent. Operating expenses and credit costs were in line with targets.

Profit before tax was VND10.27 trillion ($436.1 million), its highest ever.

ROAE and ROAA were 23.5 per cent and 2.1 per cent, among the best in the sector.

The capital adequacy ratio (under Basel II) was 13.4 per cent, also among the top in the sector.

As of December 31, 2022, the bank’s total assets were at an all-time high of over VND416 trillion ($17.7 billion). Deposits were worth VND366 trillion ($15.5 billion), up 17.7 per cent from a year earlier or nearly three times the industry’s average growth (of around 6 per cent). Outstanding loans topped VND268 trillion ($11.4 billion), up 25.6 per cent and in line with the quota allocated to HDBank by the State Bank of Vietnam.

Its stand-alone NPL ratio was only 1.3 per cent.

HDBank’s lending portfolio focuses on priority sectors that are key contributors to economic growth such as agriculture and rural development, green financing, SMEs, small business households, and supply chains.

Its card business, services and digital banking also saw remarkable acceleration.

In 2022 its bancassurance revenues doubled, ranking it among the industry leaders. The total number of credit cards it issued quadrupled while their transaction value nearly tripled, the number of e-banking customers increased by 208 per cent and e-banking transactions, by 97 per cent.

Journey of continuous high growth

Five years after making its IPO in 2017, HDBank has overcome market volatility to maintain its position as one of the best performing banks.

Its equity is worth VND 39 trillion, 2.6 times the size it was in 2017. In the period its assets have increased by 2.2 times, gross loans to customers by 2.5 times and profit before tax by 4.2 times.

Its NPL and other financial indicators have always been among the best in the sector.

The bank has consistently fulfilled its commitments to investors, with its ROE exceeding 20 per cent every year since 2018.

Along with its vibrant business activities, HDBank has also proactively fulfilled its responsibilities towards the community, developing programmes to realise its goal of financial inclusion.

It promotes banking products and services in rural and remote areas, offers credit programmes for agricultural and rural development, co-ordinates with the Vietnam General Confederation of Labour to deploy a VND10 trillion preferential credit package for workers to help combat loan sharking, and takes care of disadvantaged groups in society.

Kim Byoungho, the HDBank chairman, said: “The 2022 business performance is a gift to shareholders from the members of the newly elected board of directors who are trusted by them.

“At the same time, this performance demonstrates the mission and responsibilities of the board of directors elected for the 2022-2027 term in accomplishing the strategic initiatives assigned by shareholders.”

The bank is set to achieve excellent business results in 2023.

It is one of the few banks that are choosing an exclusive bancassurance partner. This year it hopes to complete the selection, thereby improving productivity and net fee income.

The management has stated that in the next five years the bank will maintain its high growth momentum of more than 25 per cent on average, affirming its ability to ensure safe and sustainable operations. — VNS