HDBANK: Top 50 Listed Companies in 2020

HDBank was ranked among the top 50 listed companies in Vietnam in 2020 by Forbes on October 15.

According to Forbes, HDBANK has a solid foundation, impressive performance and good strength. The Forbes list also included other big Vietnamese names like Vietcombank and Vinamilk.

They had to pass three rigorous screening rounds to have their names in the list of best listed companies with good business results, capitalization value and revenue of over VND500 billion (US$21.5 million). In addition, they were also rated on the basis of compounded annual growth, profit, return on equity (ROE), return on assets (ROA), and criteria for measuring the quality of operations.

For the banking industry, the organizers applied a set of additional indicators, including net interest margin (NIM), rate of provision (RCC), non-performing loan (NPL) ratio and earnings per share (EPS) for five years between 2015 and 2019. Passing these rounds, candidate companies were assessed by Forbes for business sustainability, including criteria for branding, quality of corporate governance, historical source of profit and prospects of sustainable development.

In this list, HDBank got the highest scores in all the above criteria, and was one of the leading banks by value added for shareholders. In three years since its initial public offering (IPO), its return on equity increased sharply from 15.8% at the end of 2017 to 21.6% at the end of 2019. Its CAGR from 2015 to 2019 reached 55%, from VND633 to VND3,675 per share, standing among top performers in the financial and banking industry. Each year, HDBank continuously sets its own new records of pretax profit while maintaining outstanding asset quality.

In addition, HDBank has a history of paying high and steady dividends in cash and stocks. The 2020 Annual General Meeting of Shareholders approved a plan to distribute up to 65% of profit, with 50% payment in stock dividend and a 15% bonus stock issue. This is the highest yield in the banking industry this year. HDBank made the first dividend payment, 30%, as planned in early October. After the dividend payment, investors expect HDB shares to continue to gain.

In addition to this noble title, HDBank also received many awards from prestigious domestic and foreign organizations such as for the Best Domestic Retail Bank in 2020 from Asian Banking & Finance and the “Best Company to Work for in Asia” named by HR Asia Magazine for three consecutive years, the first Vietnamese company to have this status. Credit rating agency Moody’s has retained the B1 long-term credit rating for HDBank, even as many businesses had their ratings downgraded due to the impacts of the COVID-19 pandemic. Most recently, HDBank was honored as one of the outstanding businesses of Vietnam - ASEAN in 2020.

Source: Vietnam Business Forum