HDBank will pay a dividend of 25 per cent, 10 per cent in cash and 15 per cent in stocks, for 2023. — Photo courtesy of HDBank

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank, stock code: HDB) will pay a dividend of 25 per cent, 10 per cent in cash and 15 per cent in stocks, for 2023, according to documents to be tabled at its 2024 annual general meeting released on April 4.

This year the bank targets 22 per cent growth in profits to VNĐ15.85 trillion (US$634.13 million) and dividend payment of up to 30 per cent (with a maximum of 15 per cent in cash).

According to the documents, the AGM will be held online on April 26.

HDBank will submit reports to shareholders for approval, including its business performance in 2023, business plans for 2024, profit distribution plans for 2023, and other key reports.

Eyeing VNĐ16 trillion profits in 2024, ROE at 24.6 per cent

HDBank, which has gone through a 10-year journey of reform, maintained its high and steady growth in 2023.

Its profitability ratios, ROA and ROE, were 2 per cent and 24.2 per cent last year, keeping it among the group of leading banks.

In 2024 the bank remains on track for high growth while developing a comprehensive environmental, social and governance (ESG) strategy.

It targets pre-tax profits of VNĐ15.85 trillion, an increase of 21.8 per cent from 2023, ROE of 24.6 per cent and maintaining its non-performing loans ratio at among the lowest levels in the industry.

Total assets are set to exceed VNĐ700 trillion ($28 billion) this year, an increase of 16 per cent from 2023.

Total fundings are expected to reach VNĐ624 trillion, up 16 per cent.

Loans outstanding are projected to cross VNĐ438 trillion in line with the credit growth target allocated by the State Bank of Vietnam.

Up to 30 per cent dividends in cash, stocks

HDBank will table at the AGM its dividend distribution plans for 2023 at the rate of 25 per cent -10 per cent in cash and 15 per cent in stocks.

Notably, it plans to pay 30 per cent in cash and stocks for 2024.

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

This year the bank plans to increase its charter capital by over VNĐ4.56 trillion ($182.88 million) to VNĐ33.65 trillion ($1.34 billion) from the current VNĐ29.1 trillion ($1.16 billion) by issuing shares to pay dividends, further consolidating its financial health indicators, which are already among the best in the industry, and solidifying the strategic foundation for its sustainable development in future.

HDBank remains steadfast about achieving sustainable development, comprehensive digital transformation and green growth.

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

HDBank is a pioneer in embracing a comprehensive ESG strategy, publishing an ESG report and proactively implementing corporate social responsibility, while enhancing digital banking development plans towards modern retail banking.

The bank’s better-than-expected results in 2023 mean good news for shareholders at the AGM on April 26.

The bank said the 2024 targets stated in the AGM documents are quite challenging at a time when the economy remains highly uncertain, but it is confident of accomplishing them.

Nearly 20,000 shareholders of the bank are preparing for the AGM in an optimistic mood about HDBank's governance and capacity to achieve the 2024 plans. — VNS