HDBank Sustains Robust Growth Strategy

2:55:04 PM | 3/19/2024

Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) organized an investor conference on business updates in 2023 and prospects for 2024.

HDBank’s investor conference provides comprehensive updates on the business performance in 2023 and outlining the strategic prospects for 2024

In 2023, HDBank achieved comprehensive high growth in both scale and quality and beat its business targets.

Specifically, the consolidated profit rose 26.8% year on year to VND13,017 billion in 2023, standing among best-performing listed banks. This achievement asserted the lender’s ability to maintain high growth in a volatile context. Performance indicators continued to stay high, with the return on assets (ROA) of 2.0% and the return on equity (ROE) of 24.2%, belonging to the best performers in the Vietnamese commercial banking system. The separate and consolidated bad debt ratio was only 1.5% and 1.79%, respectively, which were at the low end of the industry.

Notably, digitalization helped HDBank grow customers and transactions dramatically, which advanced 107% and 88% year on year, respectively. Specifically, 94% of personal customer transactions were made on digital channels, higher than the rate of 77% in 2022.

Mr. Pham Quoc Thanh, General Director of HDBank, said that the economy has shown positive signs of recovery from the fourth quarter of 2023. Export, agriculture, consumption, tourism, real estate and other sectors have revived. With positive growth signs, HDBank has developed many preferential credit packages to promptly finance people and businesses.

Regarding the outlook for 2024, HDBank elaborated notable indicators and potential growth drivers in the coming time. Specifically, in late 2023, the lender’s capital adequacy ratio continued to rise to 12.6%, among the best in the industry. The loan-to-deposit ratio (LDR) of 66.2% (compared to the regulatory limit at 85%) provided vast room for high credit growth in the coming time without pressure on capital resources. The ratio of short-term capital for medium-long-term loans of 22.5% (compared to the regulatory limit of 30%) enabled the bank to consider adding medium- and long-term loan balance to boost net interest margin (NIM).

With the above advantages and positive conditions, HDBank plans to submit targets for growth of assets, revenue, outstanding loans and profits of over 20% in 2024 to its upcoming Annual General Meeting of Shareholders.

By Le Phuong, Vietnam Business Forum