Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – HoSE: HDB) recently released its financial report for the first nine months of the year. Data shows the bank’s pre-tax profit reached 12.5 trillion VND (approximately $499.6 million), up 46.6% year-on-year, completing 79.8% of its annual target.
The bank’s Return on Equity (ROE) reached 26.7%, with Return on Assets (ROA) at 2.2%, ranking among the industry’s top performers. This impressive performance further consolidates HDBank’s market position as a leading retail bank, demonstrating its robust financial condition and sustained growth capability.
The bank plans to distribute a 20% stock dividend. As part of its development strategy, HDBank is committed to digital transformation, focusing on serving high-quality retail customers and SMEs, particularly in potential industry chains in second-tier cities and rural areas.
In the third quarter alone, pre-tax profit reached 4.49 trillion VND (approximately $177.6 million), up 42.7% from the same period in 2023. Its consumer finance division, HD SAISON, showed strong performance with loan balance up 15% year-on-year and pre-tax profit increasing 126% to 90.6 billion VND (approximately $35.7 million), with ROA at 22.9%, making it the industry’s most efficient consumer finance company. The company currently serves over 13 million customers through nearly 26,000 financial transaction points across 63 provinces.
As of September 30, 2024, HDBank’s consolidated total assets reached 629 trillion VND (approximately $24.9 billion), up 23.9% year-on-year. Total deposits increased 24.8% to 559 trillion VND, while loan balance grew 16.6% to 412 trillion VND.
In digital banking, by the end of September 2024, 95% of retail customer transactions were completed through digital platforms, with 77% of new customers acquired through digital channels. Transaction volume and deposit balance through digital channels showed exponential growth. Through digitalized customer service processes, operational process optimization, big data analytics, and robot and AI applications, the bank significantly improved production efficiency and optimized costs, reducing the cost-income ratio to 34.3%.
In terms of social responsibility, HDBank maintains its stable dividend distribution tradition. The bank distributed a 10% cash dividend in July and is currently completing the 20% stock dividend distribution process. Additionally, it launched a 12 trillion VND preferential credit program to help customers affected by Typhoon No. 3 restore operations and assist affected residents in northern provinces. Recently, HDBank and its subsidiaries donated 80 billion VND to the government’s initiative to eliminate temporary and dilapidated housing.
HDBank’s sustainable development strategy has received widespread recognition. The bank has been listed among the top 20 companies in the Ho Chi Minh Stock Exchange’s Sustainability Index (VNSI) for five consecutive years and won the “Best Green Finance in Vietnam” award at The Asian Banker Vietnam Awards.
Key News Points:
- HDBank’s pre-tax profit grew 46.6% year-on-year to 12.5 trillion VND in the first nine months.
- Digital transformation shows significant results with 95% of retail customer transactions digitalized.
- Consumer finance business performs exceptionally well with 126% profit growth.
- Asset quality remains strong with NPL ratio below industry average.
- Actively fulfilling social responsibilities while advancing sustainable development strategy.
