HDBank reports $227 mln profit in first half

First-half profit completed 54 percent of the annual budget. The parent bank’s fee income rose 113 percent year-on-year while the separate NPL ratio was 0.93 percent.

In the second quarter, all key performance indicators rose significantly. Consolidated total operating income in the second quarter reached VND5.582 trillion ($239 million), up 31.2 percent year-on-year. Profit before tax reached VND2.776 trillion, up 32.6 percent year-on-year.

Total operating income reached VND10.704 trillion, up 27.1 percent year-on-year, in which net interest income rose by 25.8 percent, and non-interest income, by 32.6 percent year-on-year. Bancassurance and other cashless payment services achieved growth with net fee income double that of the same period last year.

HDBank has implemented technologies to improve productivity and enhance risk management, resulting in the modest increase of 19.4 percent year-on-year in operating expenses. Cost-income ratios improved to 37 percent from 39.4 percent a year earlier. Profitability ratios including ROAE and ROAA were 25.6 percent and 2.24 percent respectively, both higher than those last year.

Prudential ratios are at healthy levels with CAR (under Basel II) reaching 14.9 percent – the market-leading level. The parent bank’s NPL ratio was 0.93 percent while its loan loss reserve ratio reached the comfortable level of 109 percent.

Customers conduct transaction at a HDBank branch. Photo courtesy of HDBank

HDBank is implementing a plan to raise charter capital as approved by AGM by issuing about 503 million shares to distribute 2021 dividend by stocks, at the payout ratio of 25 percent. Upon completion, charter capital will increase to VND25.303 trillion from VND20.273 trillion. The re-investment of retained earnings into the bank’s business activities will further strengthen the bank’s financial capability, preparing it for strong business growth and profit generation according to the strategy approved by shareholders.

As of June 30, total mobilized funds exceeded VND340 trillion. Total consolidated lending reached over VND245 trillion, up 14.8 percent from that of Dec. 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.

HDBank is also paying great attention to its corporate social responsibility. The bank collaborated with Tuoi Tre (Youth) Newspaper to launch a cashless payment fair for workers in industrial zones, providing them with the chance to experience cashless payment solutions and online account opening.

HDBank also contributed to the financing of gratitude house construction to honor and show appreciation to families who made great contributions to the revolution, supported localities vulnerable to floods and storms in central Vietnam, and awarded scholarships to underprivileged students who achieved good performance at universities.