HCM City Development Commercial Joint Stock Bank (HDBank) has released its business results in the fourth quarter (Q4) and the whole year 2018 with strong growth in almost all targets.
In particular, the bank’s pre-tax profit exceeded the target approved by the general Shareholders Meeting at the beginning of the year. The Return on Equity (ROE) and Return on Asset (ROA) reached respectively 20.27^ and 1.58 percent. The separate bad debt ratio of HDBank was strictly controlled at 0.97 percent, a low level compared to the sector’s average.
In Q4 2018, HDBank attained a consolidated pre-tax profit of above 1.121 trillion dong, up by 122.1 percent over the same period of 2017. In which, the net interest income reached 2.161 trillion dong, up by 23.9 percent compared to the same period of 2017, the net interest income of the parent bank alone was 1.430 trillion dong, up by 35.8 percent. In addition, income from services and foreign exchange trading activities also increased strongly, contributing to the total operating income growth of 37.8 percent.
With a breakthrough in the last quarter of 2018, HDBank recorded a pre-tax profit of 4.005 trillion dong in 2018, the highest ever of the bank, 65.7 percent higher than 2017.
Service activities continued to be the bank’s bright spot with net interest income of 438 billion dong, two times higher than 2017. Similarly, the net income from foreign exchange trading also doubled to 298 billion dong. The bank’s net interest income in 2018 reached 7.646 trillion dong, up by 20 percent compared to 2017 although the outstanding loans in the year only grew by 18.2 percent. The total operating income of HDBank reached 9.438 trillion dong, up by 25.7 percent.
HDBank’s asset scale by December 31st 2018 was 216.108 trillion dong, up by 14.1 percent compared to 2017. Its total mobilisation reached 191.588 trillion dong, and equity increased by 14 percent to 16.828 trillion dong.
Notably, with these results, HDBank said that it is ready to meet the Basel II standards if approved by the State Bank of Vietnam (SBV).
In 2018, HDBank completed its expansion plan with an addition of 45 branches and transaction offices, increasing its network to 285 points. The bank’s number of consumer finance transactions also increased by 2,323 units, reaching 13,825 transaction points, continuing to lead the entire consumer finance sector in terms of network size.
With this network, HDBank and HD Saison finance company currently serve nearly seven million clients, especially in rural areas.
In 2019, HDBank targets to increase its total assets to 328.588 trillion dong, mobilisation fund to 303.043 trillion dong, total outstanding credit to 210.839 trillion dong, not exceeding the credit limit assigned by the SBV. The bank also aims to record pre-tax profit of 5.077 trillion dong, and transaction network of 308 points.
