HDBank AGM: Accelerate digital transformation, target high growth, have responsibility towards customers, economy

HO CHI MINH CITY, VIETNAM - Media OutReach - 26 April 2021 - Shareholders of the Ho Chi Minh City Development Joint Stock Commercial Bank (HoSE: HDB) approved all the statements and proposals by the board of directors at its annual general meeting of shareholders on April 23.

HDBank achieved its best results ever in 2020.

Total consolidated assets increased by 39.1 per cent to VND319.127 trillion (US$13.8 billion).

Deposits and loans outstanding at the end of the year reached VND 208.953 trillion ($9.04 billion) and VND 188.228 trillion ($8.14 billion), up 38.4 per cent and 23 per cent for the year.

Return on equity and return on assets were 20.6 per cent and 1.7 per cent.

The bank also increased the charter capital from VNĐ9.810 trillion to over VNĐ16.088 trillion by issuing dividends and bonus shares to the tune of 65 per cent, the highest rate in the industry.

Pre-tax profit was VND 5.818 trillion, up 15.9 percent and equivalent to 102.8 percent of the target.

The bank's non-performing loans ratio was just 0.93 per cent, among the lowest in the industry.

HDBank was one of the first lenders in Vietnam to complete all three Basel II risk management pillars ahead of the central bank's schedule.

Credit rating agency Moody's recently confirmed HDBank's B1, or "stable" ratings outlook.

The year also witnessed strong digital transformation by the lender, which has created a solid foundation for achieving its goal of becoming Vietnam's leading digital bank.

The AGM also approved the business plan for 2021 with the key targets being total assets rising to VNĐ399.320 trillion, an increase of 25 per cent from last year, and deposits and loans outstanding growing by 25 per cent and 26 per cent to VNĐ359.851 trillion and VNĐ236.768 trillion.

The pre-tax profit target is VND7.281 trillion, a 25 per cent increase.

Profitability ratios like return on assets and return on equity will continue to be high at 1.62 per cent and 21.1 per cent.

This year the bank will continue to speed up digital transformation, automate key processes to improve the customer experience, reduce operating costs, and improve its competitiveness.

HDBank will prioritise development of the services segment, where it still has a lot of room to grow bancassurance and many international life insurance companies are keen to sign exclusive agreements with it.