The Ho Chi Minh City Development Joint Stock Commercial Bank (HOSE: HDB) has reported pre-tax profit of VND4.19 trillion (US$183.9 million) for the first half of the year, a year-on-year increase of 44.2 per cent and equivalent to 58 per cent of the full-year target.

According to its consolidated financial statements for the second quarter of 2021, total assets as of June 30 were worth VND331 trillion ($14.5 billion) and outstanding credit balance was more than VND199.16 trillion ($8.74 billion), up 5.8 per cent from the same period last year.

The non-performing loans ratio of the parent bank was just 0.8 per cent, among the lowest in the banking sector.

Total operating income in the second quarter was VND4.25 trillion, which took the figure for the first half to over VND8.422 trillion, up 32.7 per cent year-on-year.

Net revenues from services topped VND857 billion, 2.3 times up thanks to the strong growth in bancassurance and payment services, indicating there is still much room for growth in these areas.

Governance efficiency and profitability were enhanced, resulting in a sharp increase in return on average equity (ROAE) from 21.6 per to 25.6 per cent.

Return on assets (ROA) increased from 2 per cent to 2.1 per cent. The cost to operating income ratio improved to 39.4 per cent.

Capital adequacy ratio (CAR) and liquidity were maintained at high levels, with CAR (according to Basel II) at 13.2 per cent and loan-to-deposit ratio (LDR) at 68 per cent.

HDBank was among the first in the industry to achieve Basel III norms and resort to credit rating. Moody's Investors Service recently upgraded the outlook on its long-term deposit and issuer ratings from stable to positive.

With its practice of paying regular and high dividends, for 2020 HDBank is set to pay at a rate of 25 per cent in shares. It has announced August 27 will be the record date for the dividends.

Joining hands with community to combat pandemic

To lend a hand to the community in coping with the COVID-19 pandemic, since July 15 the bank has cut its lending interest rates by 1 percentage point on average for loans to priority sectors and industries and localities directly affected by the outbreak.

It also continues to implement preferential lending programmes with interest rates cut by up to 4.5 percentage points.

HDBank took the initiative to set up a COVID-19 Vaccine Fund, and has together with Sovico Group contributed to the fund. The Government has a vaccine fund, which has so far raised VND8.3 trillion, to help fight the pandemic.

HDBank is one of the pioneers in implementing digital transformation and automation, using online customer information verification (eKYC), promoting non-cash payments, improving the convenience of digital transaction channels, and so on to help improve efficiency and the customer experience and reduce face-to-face contact.

With its excellent results in the first half, HDBank is confident of even exceeding its full-year targets, creating momentum for the new growth phase under a strategy it has created on the advice of foreign consultants. — VNS