HCM City Development Commercial Joint Stock Bank (HDBank, stock code: HDB) has just released its audited financial statement in 2019.
Accordingly, by the end of 2019, HDBank achieved a consolidated pre-tax profit of 5.018 trillion dong, the highest ever, equivalent to an increase of 25.3 percent compared to 2018. The after-tax profit was 4.020 trillion dong, up by 25.6%. Thanks to that, the bank’s Return on Average Assets (ROAA) and Return on Average Equity (ROAE) reached respectively 1.8 percent and 21.6%, sharply up compared to 2018 and being at high levels compared to the whole industry.
Along with the strong profit growth, HDBank’s asset quality continued to improve impressively when the parent bank’s bad debt ratio was controlled at 0.98%.
The good profit growth of HDBank in 2019 is thanks to the increase in income from both lending and service fees, along with the efficient cost management. Particularly, the bank’s net interest income was 9.747 trillion dong, up by 27.5%; while the net income from services was 626 billion dong, 42.8 percent higher than 2018. The sharp rise in net interest income, although the bank’s credit growth in 2019 was only 18%, is thanks to the considerable growth in Net Interest Margin (NIM) which increased from 4.2 percent in the end of 2018 to 4.8%. This is the leading NIM in the banking system.
Regarding service income, according to the audited financial statement’s notes, the largest contribution to the impressive service income growth came from the revenue from insurance services, up by 54.5 percent and the 67.9 percent increase in payment service income.
HDBank’s leader said that the bank’s available room to develop service income is still very large, and the growth will continue to be high in the near future. In particular, the bank’s bancassurance segment is in the period of selecting partners and promises a lot of potentials. Banking services provided on modern digital banking channels will be specially promoted, in order to bring more useful banking products and services, effectively exploit the vast and diverse customer ecosystem with a database of over 30 million customers.
The strong growth of the above income sources helped the bank’s total operating income (TOI) for the first time ever reach 11.388 trillion dong, up by 20.6 percent over 2018; while the bank’s credit risk provisioning expenses were controlled at low level thanks to the bank’s good asset quality. The bank’s Cost income ratio (CIR) was 44.6%, significantly higher than the 47 percent recorded in 2018.
As of December 31st 2019, the total consolidated assets of HDBank reached 229.477 trillion dong. Its equity was 20.381 trillion dong, up by 21.1 percent over the same period of the previous year, helping the bank’s Capital adequacy ratio (CAR, based on Basel II) reach 11.2%, much higher than the minimum level of eight percent required by the State Bank of Vietnam (SBV).
HDBank’s outstanding credit in 2019 was 153.004 trillion dong, in which the outstanding credit of the parent bank was 140.422 trillion dong. HDBank’s loan portfolio structure has a high balance in terms of customers, targets profits with good and effective risk management such as hi-tech agriculture, green credit, loans to small and medium enterprises, and households with production and business needs.
