Two executives at the Hồ Chí Minh City Development Commercial Joint Stock Bank (HDBank) have registered to buy one million shares of the bank through order matching and negotiation.

 

Nguyễn Hữu Đặng, vice chairman, and Đào Duy Tường, head of the supervisory board, plan to buy 500,000 shares each.

 

The transactions are expected to be completed between November 15 and December 14.

 

On November 4 Phạm Quốc Thanh, the bank’s CEO, completed the purchase of 659,700 shares to increase his holdings to 1.9 million shares.

 

HDB closed at VNĐ14,800 on November 9, giving the share a price-to-book ratio of just 1.1 and price to earnings ratio of 4.9.

 

The lender has achieved high growth in recent years, and its bad debt ratio is low at only 1.1 per cent.

 

In the first nine months of the year HDBank’s total operating income was over VNĐ16 trillion ($643.6 million), up 32.7 per cent from the same period last year, with the net interest income rising by 80.1 per cent to more than VNĐ2.1 trillion and bancassurance revenues more than doubling.

 

Pre-tax profit was VNĐ8 trillion, up 31.7 per cent and 82 per cent of the full-year target.

 

Profitability ratios ROE and ROA were 25.2 per cent and 2.2 per cent, putting it among the leading banks in terms of efficiency.

 

Its capital adequacy ratio (according to Basel II standards) was 15.3 per cent, among the highest of any bank.

 

Recently global credit rating agency Moody's Investors Service again gave HDBank a B1 credit rating following a positive assessment of its asset quality, operating efficiency and abundant liquidity reserves.

 

In its latest analysis of the banking industry, the Hồ Chí Minh City Securities Corporation (HSC) has a buy on HDB and expects a 49 per cent increase in its price from current levels.

 

According to Yuanta Securities, HDB has the potential to increase by 66 per cent because of the bank’s solid asset quality, abundant liquidity and both credit and fee incomes remaining key drivers of profits in the four quarter of this year and subsequent quarters. — VNS