The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank - HOSE: HDB) has announced its business results for the first nine months of 2023, with pre-tax profits exceeding VNĐ8.6 trillion (US$353.9 million), a year-on-year increase of 7.7 per cent.

 

According to the financial statement, in Q3 alone, its total consolidated operating income was over VNĐ6 trillion ($2.468 million) in the third quarter of the year, up 12.8 per cent, and pre-tax profit was VNĐ3.1 trillion ($127.6 million), a 16 per cent increase.

 

For the first nine months its total operating income exceeded VNĐ18.1 trillion ($745 million), an increase of 12.8 per cent.

 

Net interest income grew by 12.5 per cent, and non-interest income by 14.1 per cent.

 

ROE and ROA were 22.4 per cent and 2 per cent respectively, among the highest in the industry.

 

As of September 30, HDBank's total assets were worth VNĐ508 trillion ($20.9 billion), a 22.1 per cent since the beginning of the year.

 

Total funding grew by 22.4 per cent during the year to VNĐ448 trillion, reflecting customers’ trust in HDBank.

 

The total loans outstanding was worth VNĐ299 trillion, up 11.5 per cent for the year.

 

The bank’s standalone loans outstanding was at VNĐ284 trillion, up 13 per cent and higher than the industry rate of around 6.9 per cent.

 

HDBank has focused on providing loans to sectors that are key contributors to economic growth, such as agriculture and rural development, green financing, fast-moving consumer goods, renewable energy, export firms, small and medium-sized enterprises, and business households.

 

The stand-alone non-performing loan ratio was only 1.96 per cent.

 

HDBank is one of the pioneers to fully adopt Basel III standards as of the third quarter, with its CAR ratio at 12.3 percent, placing it in the top group in the market and higher than the minimum prescribed requirement of 8 per cent.

 

The loan-to-deposit ratio was at 67.4 percent, below the prescribed limit, and the ratio of short-term funds used for medium- and long-term loans was only 15.6 per cent, lower than the current permitted ceiling of 30 per cent.

 

This provides room for medium- and long-term credit growth.

 

The cost-to-income ratio decreased from over 39 per cent last year to 35.8 percent, thanks to increased labor productivity and optimised operating costs through automation.

 

HDBank paid dividends of 10 per cent in cash and 15 per cent in stocks, confirming its tradition of regularly paying dividends each year.

 

To support businesses and the economy, HDBank has regularly introduced credit packages worth tens of trillions of dong for individuals and businesses at preferential interest rates and with streamlined processes.

 

Meanwhile, it has reduced loan interest rates for existing customers who meet certain conditions to share their financial burden.

 

It has also undertaken initiatives such as helping farmers access e-commerce platforms, which have been well-received by the community.

 

Its digital banking programnes have yielded positive results, with the number of customers making transactions via its digital platforms increasing by 85 per cent year-on-year.

 

The number of transactions on digital channels increased by 87 per cent.

 

The bank's efforts and achievements have earned it prestigious international awards, including for Digital Innovation at the 2023 Asean Business Awards, for World’s Best Bank in 2023 from Global Finance magazine and Leading Partner Bank in Vietnam from the Asian Development Bank. — VNS