The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) plans to collect 5.07 trillion VND (217 million USD) in pre-tax profits this year, an increase of 27 percent compared to 2018.

 

The information was released during HDBank’s Annual General Meeting of Shareholders (AGM) 2019 held in HCM City on April 23.

 

The bank forecast that total assets this year will be up 16 percent from 2018 to reach nearly 250 trillion VND (10.73 billion USD), capital mobilisation will touch 224.2 trillion VND (9.62 billion USD), an increase of 20 percent year-on-year.

 

In 2019, outstanding loans are expected to be 160.9 trillion VND (6.9 billion USD), bad debt ratio will be kept below 2 percent.

 

Return on Asset (ROA) and Return on Equity (ROE) will increase by 1.7 percent and 21.2 percent, respectively.

 

The bank will continue to expand the network of transaction points, lifting the total number to 308.

 

In 2019, HDBank will apply modern banking management models to meet international standards, boost technological innovation and apply Basel II standards in risk management, improve financial capacity and competitiveness, diversify mobilised capital sources and restructure assets to increase the proportion of profitable assets.

 

This year, shareholders will receive cash dividend payment at the rate of 10 percent.

 

During the AGM, shareholders also agreed with the plan to increase charter capital in 2019 via the issuance of shares for dividend payment and bonus shares. Dividend paid in shares and bonus shares issuance will be kept at the rate of 20 percent.

 

This capital raising plan will help HDBank to further improve the safety criteria under Basel II and increase capital supply for business activities.

 

Last year, HDBank witnessed strong development as most of the business targets increased positively compared to the same period of 2017.

 

Total assets reached more than 216 trillion VND (9.27 billion USD), up 14.1 percent. Owner's equity reached 16.8 trillion VND (721.24 million USD), up 14 percent. Total outstanding loans reached 129.6 trillion VND (5.56 billion USD), up 17.8 percent.

 

Total mobilised capital reached 186.7 trillion VND (8.01 billion USD), an increase of 9.5 percent compared to 2017. Of the estimate, mobilised capital from residents and economic organisations reached 143 trillion VND (6.13 billion USD). Non-performing loan (NPL) ratio was controlled at low level of 1.5 percent. Capital adequacy ratio (CAR) reached 12.1 percent.

 

In 2018, HDBank’s pre-tax profit was 4 trillion VND (171.73 million USD), up 65.7 percent compared to 2017 and completing 101.8 percent of the annual plan.

 

With improvement in operating efficiency, HDBank continued to maintain growth in net profit. Within five years from 2013 to 2018, HDBank's net profit growth reached 67.1 percent. As a result, earnings per share (EPS) also increased by nearly 50 percent on average.

 

By the end of 2018, HDBank had completed opening 40 transaction points and five branches, increasing the network system to 285 units. The system of consumer financial transaction points continued to be expanded to 13,825 points, maintaining the market leading position. The number of employees reached 14,340 people, with increasing income.

 

In 2018, HDBank shares were officially listed and traded on the Ho Chi Minh Stock Exchange (HOSE). The bank was also included in the list of Vietnam’s top 20 enterprises with the largest market capitalisation. Also last year, HDBank shares met all the conditions to join the VN-30 Index basket.-VNS/VNA