The Ho Chi Minh City Development Joint Stock Commercial Bank has announced its 2022 results audited by PwC, which shows profit before tax of nearly VNĐ10.27 trillion (US$437.18 million), its highest ever and up 27.2 per cent from the previous year and 105 per cent of the target approved by shareholders.

 

The non-performing loans (NPL) ratio was low, while operational safety indicators were among the best in the industry.

 

The operating income for the year topped VNĐ22 trillion ($936.39 million), up 31.1 per cent.

 

Its credit, services, card, and digital banking businesses all saw high growth. The total number of credit cards it issued quadrupled while their transaction value nearly tripled, and the number of e-banking transactions doubled with their value growing by six times to VNĐ761 trillion ($$32.39 million).

 

The return on equity and return on assets were 23.5 per cent and 2.1 per cent, both higher than last year.

 

The bank’s standalone NPL ratio was only 1.3 per cent while the consolidated rate was 1.67 per cent, lower levels compared to industry average thanks to its selective credit policies and effective risk management.

 

Its capital adequacy ratio (stipulated under Basel II) was 13.4 per cent, among the highest in the sector.

 

As of December 31 last year, its total consolidated assets were worth nearly VNĐ416.3 trillion ($17.74 million), 11.1 per cent up from 12 months earlier.

 

Outstanding loans topped VNĐ268 trillion ($11.41 billion), up 25.6 per cent. HDBank’s lending portfolio focuses on priority sectors and those that are key contributors to economic growth 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 per cent of total outstanding loans.

 

The bonds all have mortgaged assets backing them and have been paid on time and fully. HDBank also has a low real estate loan rate of 7.9 per cent of total outstanding loans.

 

As of last year, HDBank had 347 branches and transaction offices and nearly 24,500 financial transaction points, and 16,326 employees, excluding around 2,000 security guards, with average earnings of VNĐ26.7 million a month, 37.6 per cent higher than a year earlier.

 

The total remuneration for directors decreased to VNĐ8.4 billion from VNĐ10.9 billion as took voluntary cuts or used their remuneration for social activities.

 

Last year, HDBank received 24 prestigious awards and titles from domestic and international organisations, including the Top 5 Most Prestigious Banks in Việt Nam from Vietnam Report and Top 50 Listed Companies from Forbes magazine. Forbes also named HDBank among the top financial institutions in Việt Nam.

 

In addition, the bank received the Certificate of Merit of the Prime Minister, the Emulation Flag of the State Bank of Vietnam, the Certificate of Merit of the HCM City People's Committee for its contributions to the State budget.

 

Despite market fluctuations, such positive business results once again affirmed HDBank's 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 2021-25 period. — VNS