HCM City Development Commercial Joint Stock Bank (HDB) has announced its semi-annual pre-tax profit at 2.908 trillion dong. The bank’s separate bad debt ratio was controlled at only 1.1 percent the lowest in the system, with all bonds of Vietnam Asset Management Company (VAMC) settled.
By the end of the first six months of 2020, all the business targets of HDBank grew strongly. The total mobilised capital reached 213.932 trillion dong, in which mobilisation from economic organisations and people was 178.524 trillion dong, up by 18.2 percent compared to the same period of 2019. The bank’s outstanding credit was recorded at 168.772 trillion dong, up by 10.3%.
HDB’s total consolidated operating income was 6.346 trillion dong, up by 22.7 percent over the same period of last year, in which the net-interest income was 5.664 trillion dong, up by 30/1%. The bank’s service activities, securities trading, etc. all recorded positive results.
At the same time, the bank’s operating expenses were controlled efficiently at 2.738 trillion dong, helping the Cost Income Ratio (CAR) fall from 47 percent in the same period of 2019 to 43.1%.
In the first two quarters of the year, the bank actively promoted provisions for risks to early clear off the debts sold to VAMC and supplement resources to handle credit risks if incur.
Thus, the bank’s provision expenses stood at 700 billion dong, up by 168 billion dong compared to the same period of last year. the pre-tax profit reached 2.908 trillion dong, up by 31.5 percent compared to the same period of 2019, completing 51.4 percent of the plan assigned by the bank’s shareholders meeting.
HDB’s Return on Equity was 21.6 percent and Return on Asset (ROA) was 1.97%, significantly up compared to the same period of last year.
HDB’s asset quality is among the best group in the system with separate bad debt ratio of only 1.1%. all VAMC’s bonds were settled earlier than planned.
In addition to maintaining the quality of assets, the bank has continuously consolidated its financial health with Capital Adequacy Ratio (CAR, under Basel II) increasing from 10.6 percent to 11.5%.
The bank’s ratio of short-term funds used for medium and long-term lending was only 21%, continues to be among banks with the highest CAR and liquidity. HDBank completed opening eight branches and transaction offices, raising its operating scale to 294 transaction points.
The system of consumer finance transaction points of HDSaison was expanded to 18,025 points, affirming the bank’s number one market position in terms of distribution channel system.
Sharing with the community to overcome the pandemic and achieve sustainable growth before the difficulties caused by Covid-19 and unfavourable macro factors, HDBank’s good and sustainable business results show the bank’s solid foundation and its initiative and flexibility in responding to challenges.
In the context when the economy has entered a new normal stage, HDBank has on one hand implemented risk management programmes, ensuring operation safety; and on the other hand launched credit packages with preferential interest rates, exempted and reduced transaction fees to support customers to overcome difficulties caused by Covid-19.
HDBank spent 24 trillion dong to support small and medium-sized enterprises; and 10 trillion dong to support micro businesses, business households, individual customers to expand business and production, invest in high-tech agriculture, clean agriculture, renewable energy, etc.
