HDBank achieves best ever performance with $531m profit

HDBank has announced its results for 2023, which show all-round high growth. — Photo courtesy of HD Bank

HCM CITY — The Hồ Chí Minh City Development Joint Stock Commercial Bank, HDBank as it is commonly known, has announced its results for 2023, which show it exceeded all its targets and achieved high growth.

With a development strategy focused on sustainable growth and effective risk management, the bank overcame global economic headwinds and internal constraints to achieve good growth.

Pre-tax profits were nearly VNĐ13.02 trillion (US$531 million), the highest ever and up 26.8 per cent from 2022.

Its pre-tax profits for the fourth quarter rose by 94.7 per cent year-on-year to VNĐ4.4 trillion ($179.5 million).

Its bad debts ratio as of December 31 was among the lowest in the banking sector at just 1.5 per cent.

Profitability ratios ROA and ROE were 2 per cent and 24.2 per cent, putting it among the leading banks in terms of efficiency.

The capital adequacy ratio (according to Basel II standards) was 12.6 per cent, among the highest of any bank.

Its total assets exceeded VNĐ602 trillion ($24.5 billion), marking an increase of 44.7 per cent.

Deposits were up 46.5 per cent at VNĐ 537 trillion ($21.9 billion), and credit balance was 353 trillion ($14.4 billion), up 31.8 per cent.

Promoting green financing, digital transformation

In 2023 the bank’s digital banking channels grew strongly in both numbers of new customers and transactions, increasing respectively by 107 per cent and 88 per cent.

Some 94 per cent of retail customers’ transactions were done online, significantly higher than the 77 per cent rate in 2022.

For the first time the number of new customers on digital channels exceeded the number of new accounts at the counter.

HDBank has maintained a decade of high and sustained growth. Its profits have grown at a compounded annual growth rate of 49.1 per cent over the last 10 years.

To maintain sustainable growth momentum over a long period of time, it is steadfast in its strategies of multi-purpose retail, SME and consumer finance, and has proactively applied the best international standards in modern banking management.

It was a pioneer in adopting Basel II standards, and went on to upgrade to Basel III international governance standards and apply ESG (environmental-social-governance) standards last year.

Last year also marked the 10th year of HDBank’s merger with Đại Á Bank and the acquisition of the fully foreign-owned Societe Generale Viet Finance, a subsidiary of France’s Societe Generale banking group and the predecessor of HD SAISON Financial Co. Ltd.

Having successfully implemented the two mega acquisitions created growth momentum for the bank, helping it expand its supply chain finance programmes to second-tier urban areas and rural areas, and meeting demand for consumer loans from workers and employees who still do not have access to banking services.

In addition, the bank offers many loan packages at preferential interest rates to support people and businesses trying to resuscitate production and business and to keep loan sharking at bay.

It is the leading bank in promoting implementation of the One Commune One Product (OCOP) national programme, providing support to farmers seeking to take their products online and promoting the application of non-cash payments.

In 2023, HDBank funded various charity programmes​, providing free surgeries to thousands of cataract patients and health insurance cards, giving away hundreds of scholarships and building houses for hundreds of disadvantaged families across the country.

For its outstanding business performance and contributions to the economy and society, it was honoured with many prestigious awards in 2023, including the Asean Business Award, the Board of the Year Award given by the Vietnam Institute of Directors and others for having the Best Annual Report among listed large-cap companies at the Việt Nam Listed Companies Awards, top 10 most prestigious private joint-stock banks, Digital Innovation at the Asean Business Awards, World’s Best Bank from Global Finance magazine, and Leading Partner Bank in Việt Nam from the Asian Development Bank. — VNS