HDBank eyes profit target of $562M

The target is equivalent to a 29% increase over last year’s profits.

Profit after tax is also expected to rise by 29% to VND10.56 trillion.

The targets were announced at the bank’s annual general meeting Wednesday.

Nguyen Thi Phuong Thao, standing vice president of HDBank’s board of directors. Photo by Thanh Tung

Nguyen Thi Phuong Thao, standing vice president of HDBank’s board of directors, noted that despite the challenges it faced in 2022 HDBank achieved all business targets and significant growth in scale and quality.

The pre-tax profit of VND10.27 trillion (US$437.5 million) represented 105% of the target.

Performance indicators ROE and ROA were 23.5% and 2.08% respectively, both above the targeted figures.

Total assets topped VND416.2 trillion ($18 billion), an 11.1% increase from the previous year, with loans outstanding surpassing VND268.1 trillion ($11 billion), equivalent to 105% of the target.

The bank had deposits more than VND366.2 trillion ($15.6 billion), an increase of 9%, thereby ensuring liquidity and managing interest rates.

Pham Quoc Thanh, general director of HDBank. Photo by Thanh Tung

HDBank has tied up with several international organizations like AWS, Swift Go and IFC to support Vietnamese businesses seeking to expand globally.

It has comprehensively applied digitization to its operations and management. Its subsidiary, HD Saison, remains a safe and efficient operation.

Dividends can be paid in cash or shares of stocks with a total dividend payout ratio of 25% – cash 10% and shares 15%, as approved by the board of directors.

The bank plans to issue 20 million shares to employees (ESOP), increasing its capital to VND200 billion ($8.5 million).

6 key strategies

The CEO of HDBank highlighted a plan to maintain growth on the digital platform and implement initiatives in line with the bank’s five-year strategy.

Kim Byoungho, chairman of HDBank’s board of directors. Photo by Thanh Tung

Its 6 action programs include the five-year strategy for operational efficiency, increasing customers and improving distribution channels, offering a new product ecosystem, promoting branding, developing a culture of discipline and openness, and enhancing the position of HDB stock.

This year it plans to acquire shares of a securities company while restructuring credit institutions.

Nguyen Thi Tam was dismissed from the board of directors for personal reasons, while Pham Quoc Thanh, general director, has been appointed to the board.

Tran Dinh Cuong, deputy director of the State Bank of Vietnam, Ho Chi Minh City office. Photo by Thanh Tung

Many industry leaders, investment funds and partners attended the AGM.

Tran Dinh Cuong, deputy director of the State Bank of Vietnam’s Ho Chi Minh City office, said HDBank has been flexible in its operations and innovative in its business strategy, and has contribute to the banking industry as well as the economy.

He called on the bank to improve its financial capacity and diversify to strengthen investor trust and financial capability on the stock market.

Le Nhi Nang, director – head of the southern representative office of the State Securities Commission, said by offering transparent public information, the bank helps investors and shareholders secure their investment.

Le Nhi Nang, director – head of the southern representative office of the State Securities Commission. Photo by Thanh Tung

It has actively contributed to the overall development of the securities market, raising the international profile of Vietnam’s stock market.

In response to a question about the feasibility of the bank’s targets, Thao said the targets are based on a growth index of 700-800% after 10 years of renovation.

A shareholder poses a question. Photo by Thanh Tung

Asked about 100% cash payment of dividends by a foreign shareholder, Thao said this depends on several factors including market performance, the State Bank of Vietnam’s policies and the bank’s strategy.

For many years, the bank’s NPL ratio has been at 1%.