HDBank becomes successful case in VN’s bank restructuring

HDBank’s pre-tax profit in  二0 一 六 surged by up to nearly  六 三 per cent against the previous year to VNĐ 一. 二 八 二 trillion (US$ 五 一. 九 million). — Photo tuvantaichinh 二 四 七.com

HÀ NỘI — HDBank continuously posted record high profit in  二0 一 六, making it the most successful case in the country’s bank restructuring.

The bank’s pre-tax profit in  二0 一 六 surged by up to nearly  六 三 per cent against the previous year to VNĐ 一. 二 八 二 trillion (US$ 五 一. 九 million).

For the past three consecutive years, HDBank made high profits following a merger with DaiABank and the acquisition of Société Générale Viet Finance (SGVF) a few years ago.

The bank’s total assets by the end of  二0 一 六 doubled against  二0 一 四 to more than VNĐ 一 五 二 trillion. Its non-performing loan ratio was also controlled at  一. 六 五 per cent.

The bank’s representatives attributed the success to its merger with a good bank and effective business strategies, including the acquisition of a finance company.

Following the merger with DaiABank, HDBank has become a medium-sized bank, with total assets of some VNĐ 七0 trillion and a network of  二 二0 counters.

Right after the merger, HDBank also successfully set up effective business strategies with the acquisition of a foreign wholly-owned finance company and then co-operated with a Japanese partner to boost a finance company called HD Saison that currently has more than  六,000 counters nationwide.

The HD Saison finance company enabled HDBank to earn profits of VNĐ 一 七 五 billion in  二0 一 四, VNĐ 二 八0 billion in  二0 一 五 and more than VNĐ 四 四0 billion in  二0 一 六.

Owing to the good business performance, the State Bank of Việt Nam allowed HDBank to pay dividends of  五 per cent in  二0 一 四 and  一0 per cent in  二0 一 五.

In  二0 一 七, HDBank has targeted increasing total assets to VNĐ 一 九 三. 三 trillion and profit to VNĐ 一. 六 四 trillion. It also expects to lower bad debt ratio to  一. 五 per cent. — VNS