HDBank is ready to issue a 25% dividend, and profits in the next six months are projected to exceed the goal

DNHN - Ho Chi Minh City Development Commercial Joint Stock Bank (HDBank) has announced a resolution to enhance its charter capital to more than VND 25,103 billion by paying a 25 per cent dividend by shares in 2021. HDBank saw rapid expansion in both scale and quality in the first six months of 2022, with predicted business outcomes exceeding expectations.

According to the Ho Chi Minh City Stock Exchange, HDBank's Board of Directors authorized an increase in charter capital in 2022 on July 18, 2022, by the plan approved by the General Meeting of Shareholders.

After getting clearance from the agency, the bank will expand its charter capital by VND5,030 billion by issuing more than 503 million dividend-paying shares in 2021, with a distribution rate of 25%. The transaction is scheduled to be completed in the third quarter of 2022. The sources of capital for issuance from undistributed earnings have been audited and completely put aside by rules.

When the issuing plan is completed, HDBank's charter capital would rise from VND 20,273 billion to VND 25,103 billion. The increased charter capital is planned to be used on medium and long-term loans, with the remainder used to complement working capital for other operations.

HDBank recently conducted a conference to assess its operations in the first six months and implement business in the past six months, revealing several bright areas. By the conclusion of the second quarter, deposit growth had surpassed 11% compared to December 31, 2021, which was more than double the industry average. 

Credit surged by more than 14%, with growth coming from all main business areas, including retail, SME, and consumer financing. The individual bad debt ratio is just 0.93 per cent, which is low in comparison to the industry. Other safety ratios are ensured.

The service segment continues to develop rapidly, with net income expected to more than double from the same time last year, contributing to overall operating income, profit, and performance indicators reaching high levels and exceeding the 6-month goal established at the start of the year.

The conference outlined the key action plans for the final six months of the year, with the goal of meeting and exceeding the business targets set by the General Meeting of Shareholders; accelerating the implementation of digital transformation programs, and further developing the card business, non-cash payment services, bancassurance business, and other services.

According to the plan authorized by shareholders, HDBank aims for a new growth phase, both in terms of scale and quality, with an expanding capital scale and dynamic and successful commercial operations.

Binh Phuong