AsemconnectVietnam - On August 8, Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank - stock code: HDB) held an Investor Conference to update the first 6 months of 2023 with most of the positive growth indicators, Basel III implementation and comprehensive digital transformation.

Top profitability ratio in the market, HDBank maintains its growth trajectory for the 10th year in a row.
At the conference, Mr. Hoang Thanh Tung - Director of HDBank's Investor Relations Department said that in the first 6 months of 2023, most of the Bank's business indicators grew positively. HDBank's total assets have reached VND483,936 billion. Customer deposits reached VND309,645 billion, up 44%, affirming HDBank's reputation and brand in the market and customers' trust. Total outstanding loans reached VND293,129 billion, up 9.3% compared to the beginning of the year.
Answering investors about the above results, Mr. Pham Quoc Thanh - General Director of HDBank further explained that the Bank accelerated the growth of capital mobilization targets in order to proactively prepare sources for credit activities, grasp the recovery trend of the economy in the second half of 2023, while enhancing the quality of capital to meet the new Basel III standards.
In the updated period, HDBank's cost management efficiency continued to improve with its cost-to-income ratio (CIR) continuing its downward trend in recent years and reaching below 35%.
Another bright spot is that digitalization has brought some positive achievements to HDBank when the number of customers using digital channel in the first 6 months of the year increased by nearly 70%; the number of transactions on digital platforms increased by 116%, corresponding to a 132% increase in transaction value over the same period last year.
Thanks to the continuously decreasing CIR, stable NIM ratio, low bad debts, HDBank's revenue and profit maintained its growth trajectory for the 10th consecutive year. With the profit before tax in the first 6 months of 2023 reaching VND5,484 billion, the return on equity (ROE) will reach 22%, continuing to hold the position of the leading effective commercial bank in the system.
Actively seize opportunities from the recovery trend
Information at the conference, HDBank's Director of Investor Relations Department said that in the context of general difficulties in the market in the first half of 2023, HDBank's individual bad debt ratio was controlled at 1.82%, 2.15% - much lower than the bad debt ratio of the whole industry (about 3.4% at the end of April 2023).
Along with strict control of credit quality, through the first 6 months of 2023, HDBank ensured liquidity indicators and operational safety ratios much better than regulations of the State Bank. In which, the capital adequacy ratio (CAR) reached 12.3%, 1.5 times higher than the minimum level under current regulations; the loan-to-deposit ratio (LDR) is 67.8%, much lower than the 85% limit; HDBank's short-term capital ratio for medium and long-term loans is at the lowest level of 9.2% in the industry, much lower than the maximum allowed level of 34%.
Sharing at the conference, General Director Pham Quoc Thanh emphasized, with the above balances, HDBank has the advantage to grasp the recovery trend in the market and believes that it will achieve positive growth targets in the second half of 2023.
With the recovery trend of the economy when the Government's solutions to remove difficulties come into practice, the SBV's operating policies and interest rates have fallen deeply, credit quality and bad debt handling will be more positive. Accordingly, HDBank aims to sharply reduce the consolidated bad debt ratio to 1.7-1.9% by the end of this year. The bank also expects that the credit growth target will be assigned by the State Bank of 23-25%, associated with the task of participating in the restructuring of the weak bank, thereby creating more bases to fulfill both growth targets of the whole year.
N.Nga
Source: VITIC/Tinnhanhchungkhoan