HDBank Pre-tax Profit Increases By 65.7 Per Cent To $ 172.6 Million

Viet Nam News

HCM CITY — The HCM City Development Joint Stock Commercial Bank (HDBank) has announced its results for the fourth quarter of last year and for the full financial year, achieving impressive growth and meeting ambitious targets.

Its pre-tax profit surpassed the target approved at the annual general meeting early last year.

Its return on equity and return on assets were 20.27 per cent and 1.58 per cent. HDBank’s non-performing loan ratio was tightly controlled at 0.97 per cent, the lowest level in the banking industry.

In the fourth quarter, the lender achieved a consolidated pre-tax profit of over VNĐ1.12 trillion (US$48.3 million), up 122.1 per cent year-on-year. This included net interest earning of VNĐ2.16 trillion ($93.1 million), up 23.9 per cent over the same period. 

With a breakthrough performance in the last quarter of 2018, pre-tax profit for the whole year was worth nearly VNĐ4.01 trillion ($172.6 million), the highest-ever and representing an increase by 65.7 per cent from 2017.

Besides, earnings from services and foreign exchange trading also grew sharply, helping increase the bank’s income by 37.8 per cent.

Services continued to be a bright spot, with the net profit from services doubling to VNĐ438 billion.

Net earnings from foreign exchange trading also doubled to VNĐ298 billion.

Net interest earnings topped VNĐ7.65 trillion, an increase of 20 per cent from the previous year, though outstanding loans increased by only 18.2 per cent.

Total income grew by 25.7 per cent to VNĐ9.44 trillion.

Assets were worth VNĐ216.11 trillion, up 14.1 per cent from 2017.

HDBank mobilised nearly VNĐ191.59 trillion in deposits and increased its charter capital by 14 per cent to VNĐ16.8 trillion, making it ready to apply Basel Capital Accord II (Basel II) standards when they are adopted by the State Bank of Việt Nam.

Last year, HDBank achieved its target of opening 45 branches and transaction offices, taking the total number nationwide to 285.

The number of consumer financial transaction points increased by more than 2,300 to 13,825, enabling the bank to retain its leading position in the consumer finance industry in terms of network size.

Their large networks enable HDBank and HD Saison to efficiently serve nearly seven million customers, especially in rural areas.

The bank’s stock – code HDB – which was listed last year, has become one of the 20 largest stocks in terms of market captilisation on the HCM Stock Exchange and sees lots of buying by foreign investors.

The bank was awarded the Labour Medal, second class, on the occasion of its 28th anniversary.

Moody’s Investors Service has upgraded the baseline credit assessments and counterparty risk assessments for HDBank to B1.

HDBank was one of the 37 largest contributors to HCM City’s revenues, and was honoured for it by the city People’s Committee.

The bank won many awards last year, including for the 40 Most Valuable Brands in Việt Nam from Forbes, the “Best Companies to Work for in Asia” award from HR Asia, the “Retail Banking Award” from the Việt Nam Banks Association and the International Data Group, and the “Best Cash Management in the Asia-Pacific” award from Euromoney.

HDBank also attaches great importance to community programmes. It gave scholarships to 1,000 students, donated health insurance cards to thousands of near-poor people and funded cataract surgeries for thousands of poor patients.

The bank is also a stakeholder in the development of the country’s sports. Last year, for the eighth time it organised the HDBank Cup International Chess Tournament, which resonated in the world of chess. Last year was the largest event with 271 players taking part, including 125 from 21 countries and territories.

The second HDBank Futsal Prize (National Championship and Cup) held last year with attractive games and top-quality competition contributed to the growth of Việt Nam’s futsal in the international arena.

This year, HDBank hopes to increase its assets to VNĐ328.59 trillion, mobilise more than VNĐ303 trillion in deposits and generate pre-tax profits of VNĐ5.1 trillion, have total outstanding loans of VNĐ210.84 trillion if it falls within the credit growth limit approved by the SBV, and increase the number of transaction points to 308. — VNS

RECENT NEWS

Vietjet Launches Four Routes Linking Top Destinations Of Việt Nam And India

Vietjet has officially launched four more services linking top destinations of Việt Nam and India including HCM Ci... Read more

Sacombank To Recruit 300 Staff By July

Sacombank is set to hire 300 employees by the end of July for positions like personal/corporate customer service ass... Read more

"Fly First-Pay Later" By MOVI And Vietjet Wins Technology Award

“Fly first - Pay later” is an 100 per cent online financial product that first appeared on the Vietnamese market... Read more

EXIM Thailand Opens Representative Office In HCM City, Inks Credit Deal With BIDV

The Export-Import Bank of Thailand has agreed to provide the Bank for Investment and Development of Việt Nam with ... Read more

Vietjet Launches Two Routes To India

The two newest routes, which will operate 3 and 4 round-trip flights per week respectively, are expected to continu... Read more

Vietjet Develops E-logistics, Pays 20 Per Cent Stock Dividend

The budget carrier expects to earn more than VNĐ22.3 trillion (US$959 million) in air transport revenue in 2022 Read more