Hochiminh City Joint Stock Commercial Bank (HDBank, coded HDB) is among Vietnam’s top eight joint stock commercial banks and top three consumer finance companies.
Hochiminh city Securities Company (HSC) also pays attention to HDBank’s growth potential from the unique customer ecosystem combined with Vietjet Air. The bank’s strategy is to focus mainly on expanding network at rural area, targeting at individual customers and small and medium businesses. Meanwhile, HDBank is also the only shares of joint stock commercial banks on the bourse to have room for foreign investors.
In 2018, HSC has positive assessments about HDBank’s business operations. This unit forecasts that HDBank’s customer loans will grow 25 percent, reaching 130.630 trillion dong. HSC expects that HDBank and HD Saison will achieve the lending growth of 25 percent, touching 188.820 trillion dong and 11.810 trillion dong respectively. Customers’ deposits grow 20 percent, hitting 144 trillion dong. The increase in customers’ deposits only focused on the parent bank.
HSC predicts that HDBank’s NIM will increase to 4.6 percent from 4.06 percent in 2017. Of which, HDBank’s NIM will improve from 2.43 percent in 2017 to 3.02 percent in 2018. HDSaison’s NIM will be stable at 30.13 percent in 2018 when the company launches the majority of new products to the market in 2018.
Consolidated net interest income increased 40.5 percent to 8.957 trillion dong. Of which, HD Saison’s consolidated net interest income grew 25.1 percent, reaching 3.414 trillion dong. HDB’s consolidated non-interest income is estimated to swell 11.5 percent, touching 1.285 trillion dong.
HSC assumes that HDBank’s income from service will grow strongly in 2018 after the bank applies higher fees to all of its customers (HSC forecasts the net interest for HDBank’s service operation will grow 140.36 percent, hitting 429 billion dong).
On the other hand, HSC also estimates that the income from business/securities investment will drop 40 percent to 290 billion dong and has not included in its forecasted model the potential profit that may arise if HDBank sells VJC shares. Accordingly, after deducting fees, HSC estimates that HDBank’s consolidated pre-tax profits may reach 3.958 trillion dong, growing nearly 64 percent from the previous year.
