HDBank reports record audited pre-tax profit growth

15:18 | 01/04/2019

Ho Chi Minh City commercial lender, HDBank, posted the highest-ever pre-tax profit touching VND4.005 trillion ($174 million) in 2018, a 65.7 per cent jump against the prior year and surpassing 2018’s full-year profit target, according to the bank’s newly released audited financial statement.  

hdbank reports record audited pre tax profit growth
HDBank has been listed among the 20 stocks with the largest market cap on the HSX

This excellent performance was attributed to a robust increase in the bank’s net profit from services, which hit VND438 billion ($19.04 million) last year, a 2.2-fold increase compared to 2017.

Meanwhile, the bank’s net earnings from foreign exchange activities also doubled to VND298 billion ($13 million).

The bank’s net interest income totalled VND7.646 trillion ($332.4 million), a 20 per cent jump on-year, while its total operating income rose by 25.8 per cent to VND9.440 trillion ($410.4 million).

By the end of last year, HDBank reported VND129.624 trillion ($5.63 billion) in total outstanding loan balances, a nearly 18 per cent jump on-year, of which the parent bank alone amounted to VND112.479 trillion ($4.9 billion), up 18.3 per cent and total deposit volumes hit VND194.634 trillion ($8.46 billion).

Its total asset value climbed to VND216.057 trillion ($9.4 billion), its equity to VND16.828 trillion ($731.6 million), with the return on equity (ROE) and return on asset (ROA) ratios hitting 20.3 and 1.6 per cent, respectively.

The bank’s audited financial statement also revealed that as of December 31, 2018 its non-performing loan ratio was kept stably at 0.97 per cent, which was the lowest in the banking sector.

Last year, the bank opened an additional five branches and 40 transaction offices, taking the total to 285 nationwide. Additionally, HD SAISON Finance, a joint venture between HDBank and Japan’s finance corporation Credit Saison, served nearly seven million customers at 13,825 offices, including 2,323 offices opened in 2018.

Besides effective business activities, HDBank witnessed a number of milestones in its development in 2018.

Besides effective business activities, HDBank witnessed a number of milestones in its development in 2018. Particularly, the bank’s ticker seized a spot among the 20 stocks with the largest market cap in the southern bourse (HSX) and was net-bought continuously by foreign investors.

Notably, one year after debuting on the stock market, its ticker HDB was listed among the VN30 (the top 30 listed firms).

The lender was also conferred the second-class Labour Medal and saw Moody's Investors Service increase its counterparty risk rating (CRR) and counterparty risk assessment (CRA) to B1 grade.

Besides, the bank was honoured as one of the largest contributors to Ho Chi Minh City’s budget.

It won multiple awards last year, including being listed as one of Vietnam’s most valuable brands by Forbes, scooping up the “Best Companies to Work for in Asia” award of HR Asia, the “Retail Banking Award 2018” by the Vietnam Banks Association and International Data Group, and the “Cash Management in the Asia-Pacific” award by Euromoney.

Besides business activities, HDBank attaches great importance to community programmes. The bank presented thousands of scholarships to students and 14,000 health insurance cards to near-poor people, as well funded thousands of cataract surgeries to help the poor.

As a companion to Vietnam’s sports development, last year was the eighth consecutive year that HDBank Cup International Open Chess was organised, affirming its role as Vietnam’s leading international chess championship, and stirred up the world chess circles by attracting a record number of nearly 300 participants from 21 countries and territories.

Besides, HDBank continued funding the annually-held National Futsal HDBank Championship 2018, helping to bring quality matches to the wide community of football fans.

Anh Duc

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