HO CHI MINH CITY, VIETNAM – Media Outreach – August 3, 2023 – Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – HOSE: HDB) announced its first half results with pre-tax profits of almost VND 232.4 million, which extended its growth record for the 10th consecutive year.
“Overcoming many unprecedented challenges in the first half of this year, HDBank’s operating results in the first six months of 2023 once again confirm that the strategy and objectives set by the Board of Directors are HDBank remains steadfast in its sustainability strategy, focusing on retail and digitalization, enhancing customer experience and values, with a focus on agriculture and rural areas, serving individuals, households, SMEs and value chains,” said Mr. Kim Byoungho, Chairman of the Board of HDBank.
ROE and many financial indicators are at the market-peak levels
According to the financial statements, as of June 30, 2023, HDBank’s total assets reached $20.4 billion, up 26% year-on-year (YoY).
Total funding reached $18.17 billion, up 17.4% year-to-date (YTD), with customer deposits reaching $13.08 billion, up 44%.
The total credit balance topped $12.36 billion, up 9.3% year-to-date.
These indicators reflect the bank’s good growth momentum, driven in particular by its strategic refocusing on agriculture, rural areas, SMEs, VSEs and sectors, in line with the “Sustainable Development – Pioneering Spirit” strategy adopted during of its General Assembly.
HDBank’s digital transformation efforts are bearing fruit, with the number of customers using digital channels in the first six months of 2023 increasing by nearly 70% year-on-year.
The number of transactions on digital platforms increased by 116% year-on-year, corresponding to a 132% increase in the value of transactions.
Digital transformation has also improved productivity, the cost-income ratio (CIR) has been optimized to 34.77%, compared to 36.98% last year, which is among the banks with the lowest CIR in the market .
The return on equity (ROE) exceeded 22%, which further strengthened its position among the most profitable banks in the system.
In the first half of 2023, in line with the State Bank’s directive on reducing lending rates and restructuring the repayment schedule for customers facing difficulties to support their recovery, HDBank reduced lending rates. interest on loans for its customers whose total outstanding loan balance was greater than $2.7. billion.
The Bank’s subsidiary – HD SAISON is also promoting the disbursement of a VND 10 trillion preferential loan package for laborers and factory workers.
Basel III standards fully implemented, room for growth remains significant
Basel III standards were first studied for implementation since 2019, by June 2023 HDBank has completed the adoption of the highest international risk management standards in Vietnam.
Furthermore, HDBank’s prudential indicators as of June 30, 2023 are significantly ahead of the regulatory requirements of the State Bank of Vietnam.
Specifically, the bank’s loan-to-deposit ratio (LDR) was maintained at 70.96%, below the prescribed limit of 85%.
The capital adequacy ratio (CAR) reached 12.3%, belonging to the top group in the market and more than 50% higher than the minimum requirement of 8%.
The ratio of short-term funds used for medium and long-term loans was 11.2%, only one-third of the current ceiling ratio of 34%.
“By maintaining high risk management standards under Basel III, as well as adhering to good operational security ratios against State Bank of Vietnam regulations, HDBank has the capacity to continue to pursue growth stocks in the future and help promote a strong economy recovery alongside its customers,” added Mr. Kim Byoungho, Chairman of the Board.
With a focus on sustainable development, building and spreading human values to the community alongside its business activities, in the first six months of 2023, HDBank actively implemented many community and welfare activities. be social through more than 20 programs nationwide.
HDBank’s outstanding efforts and achievements in the first six months of 2023 have been recognized with prestigious international awards, including awards from CitiBank and Wells Fargo for its excellent international payment service, and recognition as Best Bank for sustainable finance in 2022 by The Asset.
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