3:17:51 PM | 8/21/2024
Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) recently published its financial report for the second quarter of 2024, highlighting a significant year-on-year increase in pretax profit, which surged by 48.9% to VND8,165 billion. This improvement in profitability, alongside enhanced operational performance and safety indicators, affirmed the effectiveness of HDBank’s sustainable development strategy.
HDBank’s transaction office
High and solid credit growth, best ROE
According to the semi-annual financial statement ended June 30, 2024, HDBank recorded credit growth of 13.0% in the year to date. Credit flows continued to be directed to the drivers of economic growth such as agriculture, rural development, SMEs, chain financing, green credit and tourism. Besides high sustainable credit growth, HDBank ensured capital safety indicators and the lowest bad debt in the industry. The capital adequacy ratio (CAR) according to Basel II standards reached 13.9%. The consolidated bad debt ratio, including consumer finance as prescribed in Circular 11 of the State Bank of Vietnam, was only 1.59%.
HDBank achieved total revenue of VND16,045 billion in the first half of 2024, up 32.9% year on year. The pretax profit rose 48.9% year on year to VND8,165 billion on HDBank's better performance and digital transformation initiatives. Return on equity (ROE) and return on assets (ROA) were 26.1% and 2.1%, respectively, both higher than the previous year.
Upholding its shareholder interest tradition with annualized dividend payments, with the payout ratio of 30% for this year, HDBank completed paying a 10% cash dividend and planned for a 20% stock dividend, expected to be distributed in the third quarter.
As of June 30, 2024, the lender’s total assets exceeded VND624 trillion, up 29% from a year-ago period. Its cash deposits valued over VND552 trillion, with nearly VND40 trillion deposited from digital banking channels, five times higher than a year earlier.
New progressive steps of digital and green banking
In the first six months of 2024, HDBank marked new progress on the path towards the environmental, social, and governance (ESG) sustainability strategy. Recently, HDBank became the first bank to release a sustainability report, prepared with international standards, where HDBank clearly demonstrated its commitment to sustainability principles towards a Net Zero Bank by 2050. HDBank took the lead in forming the Sustainable Development Committee under the Board of Directors to direct and oversee the comprehensive integration of ESG standards into all activities.
HDBank continued to speed up green banking alongside digitalization, developed modern digital business and researched artificial intelligence (AI) technology in the first half of 2024. Specifically, new digital customers were 2.5 times more than the same period of 2023. 94% of transactions were conducted on digital channels. E-banking transactions soared 130%.
In addition to launching new products and convenient cashless payment solutions, HDBank completed deploying biometric authentication using facial recognition technology as per Decision 2345/QD-NHNN ahead of schedule, enabling it to improve transaction safety and security for customers. Previously, the lender pioneered launching the “HDBank Countryside” application designed for users in modern, effective and sustainable agriculture and rural development.
HDBank is confident that the very optimistic results in the first six months of the year and the effective application of new initiatives will be a good foundation for it to achieve further development in 2024.
By Le Phuong, Vietnam Business Forum
Vietnamese
October 2024
Hanoi
