The recently-released business results for the Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) in the first half of 2022 reveal pre-tax profits of VND5.3 trillion ($277.53 million), a 26.5 per cent increase year-on-year and fulfilling 54 per cent of its annual plan. The parent bank’s fee income rose 113 per cent year-on-year, while its separate non-performing loan (NPL) ratio was 0.93 per cent.

Building on its encouraging results in the first quarter, in the second quarter all key performance indicators, including quantitative and qualitative indicators, rose significantly. Consolidated total operating income in the first half reached VND5.58 trillion ($239.6 million), up 31.2 per cent year-on-year. Pre-tax profit was VND2.77 trillion ($119.2 million), up 32.6 per cent year-on-year. Total operating income in the first half reached VND10.7 trillion ($459.6 million), up 27.1 per cent year-on-year, of which net interest income rose 25.8 per cent and non-interest income 32.6 per cent. Bancassurance and cashless payment services posted robust growth, with net fee income doubling the figure in the same period of last year.

HDBank has managed expenses and implemented technologies to improve productivity and enhance risk management, resulting in an increase of 19.4 per cent year-on-year in operating expenses. The cost-income ratio improved to 37 per cent from 39.4 per cent a year earlier. Profitability ratios, including Return on Equity (ROE) and Return on Average Assets (ROAA) were 25.6 per cent and 2.24 per cent, respectively; higher than last year.

Prudential ratios are at healthy levels, with the Capital Adequacy Ratio (CAR) reaching 14.9 per cent (under Basel II) and leading the market. The parent bank’s NPL ratio was 0.93 per cent and the loan loss reserve ratio a comfortable 109 per cent.

HDBank is implementing a plan approved at its AGM to raise its charter capital by issuing about 503 million shares to distribute 2021 dividend in stocks with a payout ratio of 25 per cent. Upon completion, charter capital will increase to VND25.3 trillion ($1.08 billion) from VND20.27 trillion ($269.64 million). The re-investment of retained earnings into the bank’s business activities will further strengthen its financial capabilities, making it ready for strong business growth and profit generation under the strategy approved by shareholders.

As of June 30, total mobilized funds exceeded VND340 trillion ($14.6 billion). Total consolidated lending stood at over VND245 trillion ($10.51 billion), up 14.8 per cent since December 31, 2021. Customers, including those in rural areas, exporters, supply chain clients, household businesses, micro-businesses, and those eligible for green finance programs all enjoyed HDBank’s favorable lending programs.

In addition to strong business performance, HDBank is also paying major attention to its corporate social responsibility. It worked with the Youth Newspaper to launch a cashless payment fair for workers at industrial zones, to provide them with the chance to experience cashless payment solutions and online account opening. The bank also contributed financing to building houses of gratitude to honor and show appreciation to families who made great contributions to Vietnam’s revolution. It also supported localities vulnerable to flooding and storms in central provinces, and presented university scholarships to underprivileged but hard-working students.

The positive operating results posted in the first half showcase HDBank’s ability to effectively implement business plans and its determination to conduct digital transformation to further improve productivity and the customer experience and to create synergy among all members within its large and promising ecosystem. This is also a sign that the strategy to achieve strong growth both in business scale and quality in the new development period is gradually being realized and has provided sound values to shareholders and investors.