The Hồ Chí Minh City Development Joint Stock Commercial Bank (HDBank, stock code: HDB) continues to set ambitious targets for high growth this year while promoting a comprehensive environmental, social and governance (ESG) strategy.

Kim Byoungho, chairman of its board of directors, said: “The bank is committed to promoting environmental protection, social responsibility and corporate governance in creating value for its stakeholders.

“By incorporating ESG principles into its operations, HDBank is not only prioritising long-term sustainability but also contributing to the well-being of society and the environment.”

“Its commitment to profitability, sustainability and shareholder value creation sets it apart as a leading financial institution in Việt Nam.

“It has steadily improved its management capacity and embraced advanced international management standards such as Basel III.”

The bank's commitment to profitability while continuing to promote its ESG strategy has been a key driver of its success and will continue to fuel its growth in 2024.

Ambitious targets

The private lender unveiled an ambitious pre-tax profit target for this year of VNĐ15.85 trillion (US$634.13 million), up 21.8 per cent from 2023, at its annual general meeting last month.

It targets deposits of VNĐ624 trillion by December 31, up 16 per cent from 2023, and loans outstanding of VNĐ438 trillion, which is in line with the credit growth quota allocated by the central bank.

HDBank has an asset target of over VNĐ700 trillion, up 16 per cent from 2023.

This year it also plans to increase its charter capital by VNĐ6 trillion to over VNĐ35.1 trillion.

Phạm Quốc Thanh, its general director, said HDBank continues to achieve significant pre-tax profits, which topped VNĐ4 trillion for the first quarter of 2024, a 43.6 per cent jump year-on-year.

Its ROE was 26.2 per cent, credit growth was 6.2 per cent and bad debts were controlled at 1.68 per cent.

Its CAR, based on Basel II standards, topped 13.7 per cent.

2023 performance

In 2023 the bank’s profit before tax was VNĐ13 trillion , up 26.8 per cent from 2022.

Its assets exceeded VNĐ602 trillion last year, a 44.7 per cent jump year-on-year.

Total deposits reached VNĐ536 trillion last year, up 46.5 per cent from the previous year.

Total lending exceeded VNĐ353 trillion last year, up 31.8 per cent.

It achieved an ROA of over 2 per cent and an ROE of 24.2 per cent last year, placing it among the top banks in the industry.

It managed to ensure a low bad debts ratio of 1.5 per cent and achieve a capital adequacy ratio (CAR) of 12.6 per cent last year, among the highest in the industry.

High dividends

HDBank has consistently paid high dividends for over a decade as it achieved rapid and steady growth.

This year is no exception as it plans to pay a dividend of 30 per cent, with a maximum of 10 per cent in cash and the rest in stocks.

The AGM also agreed to increase the dividend payment rate for last year to 30 per cent from 25 per cent, 10 per cent in cash and the rest in stocks.

Nguyễn Thị Phương Thảo, vice chairwoman of HDBank’s board of directors, said Việt Nam is emerging as a lucrative investment spot in the global market, presenting a golden opportunity for the lender to achieve “robust and sustainable growth.”

“With a focus on customer service, innovative approach, management, and adaptability, along with the collaborative efforts of its shareholders, HDBank is well positioned to achieve high growth this year and beyond.” — VNS