HDBank Press Release: Mid-2024 Business Results

DNHN - Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) has just released its financial report for Q2/2024, showing a half-year pre-tax profit of VND 8,165 billion, an increase of 48.9% compared to the same period last year.

Implementing a sustainable development strategy, HDBank reported a profit of VND 8,165 billion, with non-performing loans at only 1.59%

Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank - Stock Code: HDB) has just released its financial report for Q2/2024, showing a half-year pre-tax profit of VND 8,165 billion, an increase of 48.9% compared to the same period last year. The effectiveness indicators and safety of the operations have continued to improve, affirming the right direction of the sustainable development strategy.

High and solid credit growth, leading ROE

According to the report, as of June 30, 2024, HDBank recorded credit growth of 13.0% compared to the beginning of the year, continuing to direct credit capital to economic growth-driving sectors such as agriculture, rural areas, SMEs, supply chain financing, green credit, tourism, etc. Alongside high sustainable credit growth, HDBank ensures capital safety indicators, with non-performing loans at the lowest level in the industry. The capital adequacy ratio (CAR) according to Basel II standards reached 13.9%. The consolidated non-performing loan ratio, including consumer finance according to the State Bank's Circular 11, is only 1.59%.

After the first half of 2024, HDBank recorded a total income of VND 16,045 billion, an increase of 32.9% compared to the same period last year. Pre-tax profit reached VND 8,165 billion, an increase of 48.9% compared to the same period, due to enhanced operational efficiency and the application of HDBank's digital transformation initiatives. Return on equity (ROE) was 26.1%, and return on assets (ROA) reached 2.1%, both higher than the previous year.

Continuing the tradition of caring for investor interests through high and continuous annual dividend payments, this year shareholders received a dividend of up to 30%. HDBank has completed paying a 10% cash dividend and is continuing to implement a 20% stock dividend, expected in Q3.

As of June 30, 2024, HDBank's total assets exceeded VND 624 trillion, an increase of 29% compared to the same period last year. Capital mobilization scale reached over VND 552 trillion, notably digital banking deposits reached nearly VND 40 trillion, five times higher than the same period.

New advancements in digital and green banking

In the first six months of 2024, HDBank marked new advancements in the comprehensive implementation of its sustainable development (ESG) strategy. Recently, HDBank became the first bank to publish a sustainable development report, prepared according to international standards. Through this report, HDBank clearly demonstrates its commitment to implementing sustainable development principles, aiming for a Net Zero Bank by 2050. HDBank pioneered the establishment of a Sustainable Development Committee under the Board of Directors to direct and oversee the comprehensive integration of ESG standards into all bank activities.

HDBank actively promoted "green" environmentally friendly banking alongside "digital" advancements, modern digital business development, and research on applying artificial intelligence (AI) technology in the first half of 2024. Specifically, the number of new customers attracted through digital channels was 2.5 times higher than the same period last year. 94% of customer transactions were conducted on digital channels. The number of e-banking transactions increased by 130% compared to the same period.

In addition to launching new products and convenient cashless payment solutions, HDBank completed the implementation of facial recognition biometric technology ahead of schedule according to Decision No. 2345/QĐ-NHNN, enhancing transaction safety and customer security. Previously, HDBank pioneered the launch of the "HDBank Rural" app, dedicated to the modern, efficient, and sustainable development of agriculture and rural areas.

Through business growth and new advancements in digitization and greening, reputable global organizations have recognized HDBank. On July 4, the bank was honored by Asian Banking & Finance (ABF) magazine with two awards: "Retail Bank of the Year" and "Payment and Digital Banking Initiative of the Year in Vietnam," alongside major financial institutions in the Asia region.

Previously, the bank was also honored with the "Best Bank for Sustainable Finance" award by The Asset magazine. Additionally, HDBank's international standing was further confirmed when it ranked among the TOP 500 largest businesses in Southeast Asia, according to the prestigious Fortune magazine.

Alongside business and sustainable development, HDBank always actively contributes to a brighter Vietnam, particularly in education, healthcare, culture, and sports, notably through programs supporting the National Futsal Championship HDBank, Futsal HDBank Student Cup, and the International HDBank Chess Tournament...

HDBank believes that with the very positive results in the first six months and the effective application of new initiatives, it will continue to develop further in 2024./

L.N.