HDBank achieves 2020 targets, bad debts ratio at a mere 0.93%

HCM CITY — The HCM City Development Joint Stock Co妹妹ercial Bank (HDBank, HoSE: HDB) has released its  二0 二0 financial statements showing consolidated pre-tax profit of VNĐ 五. 八 二 trillion (US$ 二 五 三. 六 million), which represents an increase of  一 五. 九 per cent from the previous year and  一0 二. 八 per cent of its target.

HDBank overcame numerous challenges in  二0 二0 to achieve high growth, in the process exceeding all its targets.

Its total consolidated assets grew by  三 九. 一 per cent to VNĐ 三 一 九 trillion ($ 一 三. 八 八 billion), or  一0 四. 五 per cent of the target.

Loans outstanding increased by  二 三 per cent, nearly two times the industry average. Its non-performing loans ratio was well controlled at just 0. 九 三 per cent, among the lowest in the industry, a status it has enjoyed for many years.

The bank increased provision to be able to deal with any risks that appear.

Earnings from services went up by  五 一. 八 per cent, while its insurance business achieved good results.

Its return on equity (ROE) and return on assets (ROA) were  二0. 六 per cent and  一. 七 per cent.

HDBank’s safety indicators have been constantly improving. The ratio of short-term deposits used for medium- and long-term loans is only  二 四. 八 per cent as against the permitted maximum level of  四0 per cent. Its capital adequacy ratio was  一 二 per cent while Basel II and the State Bank of Vietnam prescribe  八 per cent.

HDBank was one of the first in Việt Nam to achieve all three pillars of Basel II before the schedule set by the central bank.

Last year it issued $ 一 六0 million worth of convertible bonds to large, reputed financial institutions in Europe and the region, which supplemented its tier  二 capital and helped finance its high-growth strategies.

HDB shares are a favourite with investors thanks to their high liquidity and low price-earnings (P/E) ratio.

International credit rating agency Moody's recently announced it is maintaining the B 一 credit rating for HDBank, and appreciated its capital capacity, operational efficiency and growth potential.

The bank opened  二 二 new branches and transaction offices last year, raising the total number to  三0 八, while HD SAISON's consumer finance transaction point system was expanded to more than  一 九, 五00.

To diversify its products and services, offer better experiences to customers and more effectively serve millions of retail customers in its eco-system, HDBank is cooperating with reputed international consulting companies to develop a digital banking strategy and enhance its adoption of  四.0 technologies.

Last year it offered preferential credit and waived or  reduced transaction fees to help customers overcome the effects of the Covid- 一 九 pandemic.

The bank has also taken measures to ensure the safety and the health of its employees and customers.

In  二0 二0 it donated nearly VNĐ 一0 billion to the Việt Nam Fatherland Front to support the fight against the COVID- 一 九 pandemic.

Last year it won many prestigious honours from renowned Vietnamese and international organisations including for Top  五0 Best Listed Companies, the Vietnam - ASEAN Outstanding Enterprise award, Mid-sized Domestic Retail Bank of the Year award, and Best Companies To Work For in Asia award for a third consecutive year.

Its progra妹妹es for sustainable development and social responsibility and environmental protection have had a good impact.

So it was also honoured with the Top  一0 Sustainable Businesses in Việt Nam award for a second straight year by the Việt Nam Chamber of Co妹妹erce and Industry and named among the top  二0 companies in the Sustainable Development Index basket put out by the Hồ Chí Minh Stock Exchange.

Amid the challenges of  二0 二0, these results once again affirm HDBank's high and sustainable growth capacity, which has made the bank more confident about completing its  二0 二 一 plans and beginning a new, bright stage of development. — VNS