The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank, HoSE: HDB) has reported its audited 2022 results by PwC, revealing a profit before tax of nearly VNĐ10.27 trillion (equivalent to US$437.18 million), which is its highest ever and a 27.2% increase from the previous year. This amount is also 105% of the target approved by shareholders.
The bank’s non-performing loan (NPL) ratio was low, and its operational safety indicators were among the best in the industry. The operating income for the year was over VNĐ22 trillion ($936.39 million), representing a 31.1% increase.
HDBank saw significant growth in its credit, services, card, and digital banking businesses. The number of credit cards issued quadrupled while their transaction value almost tripled, and the number of e-banking transactions doubled, with their value growing six-fold to VNĐ761 trillion ($32.39 million).
The bank’s return on equity and return on assets increased to 23.5% and 2.1%, respectively, both higher than last year. Additionally, the bank’s standalone NPL ratio was only 1.3%, while the consolidated rate was 1.67%, lower than the industry average due to selective credit policies and effective risk management.
The bank’s capital adequacy ratio, stipulated under Basel II, was 13.4%, among the highest in the sector. As of December 31, 2022, its total consolidated assets were worth nearly VNĐ416.3 trillion ($17.74 million), up 11.1% from 12 months earlier. Outstanding loans increased to VNĐ268 trillion ($11.41 billion), a 25.6% increase. The bank’s lending portfolio focuses on priority sectors such as agriculture and rural development, SMEs, supply and distribution chains, green financing, and small business households.
HDBank owns only VNĐ4.3 trillion ($183.19 million) worth of corporate bonds, equivalent to just 1.6% of total outstanding loans. The bonds all have mortgaged assets backing them and have been paid on time and in full. HDBank also has a low real estate loan rate of 7.9% of total outstanding loans.
As of last year, HDBank had 347 branches and transaction offices, nearly 24,500 financial transaction points, and 16,326 employees, excluding around 2,000 security guards, with an average monthly earning of VNĐ26.7 million, a 37.6% increase from the previous year. The total remuneration for directors decreased to VNĐ8.4 billion from VNĐ10.9 billion as some took voluntary cuts or used their remuneration for social activities.
Last year, HDBank received 24 prestigious awards and titles from domestic and international organizations, including the Top 5 Most Prestigious Banks in Vietnam from Vietnam Report and Top 50 Listed Companies from Forbes magazine. Forbes also named HDBank among the top financial institutions in Vietnam. Additionally, the bank received the Certificate of Merit of the Prime Minister, the Emulation Flag of the State Bank of Vietnam, and the Certificate of Merit of the HCM City People’s Committee for its contributions to the State budget.
Despite market fluctuations, HDBank’s positive business results once again affirmed its ability to maintain high growth in what was a pivotal year with its new development strategy in terms of both scale and quality in the 2021-2025 period.
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Source: Vietnam Insider