The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank, sticker: HDB) is confident of strong fourth-quarter growth and achieving full-year profit targets, executives said at its Q3 Investor Conference.

 

The bank reported robust results for the first nine months, with credit growth of 22.6 per cent, pre-tax profits of VNĐ14.8 trillion (US$562 million), up 17 per cent, and non-interest income rising 178.6 per cent to VNĐ5.37 trillion ($204.1 million).

 

Return on equity (ROE) stood at 25.2 per cent, return on assets at 2.1 per cent and the cost-to-income ratio at 25.7 per cent, among the lowest in the industry.

 

HDBank serves over 20 million customers, maintaining sustainable growth on a financially strong foundation that is rated highly internationally, with Moody’s assigning one of the highest credit ratings in the industry.

 

Its subsidiaries also delivered solid results.

 

HD SAISON earned VNĐ1.1 trillion ($41.8 million) in profits with ROE of 24.4 per cent, HD Securities posted VNĐ614 billion ($23.3 million), up 30 per cent, and led the sector in ROE, while Vikki Bank turned profitable seven months after its transaction, signing up 1.3 million new customers.

 

Shareholders approved relocating the bank’s headquarters to Saigon Marina IFC, a new landmark in HCM City’s International Financial Centre.

 

The bank has sought shareholder approval for paying 25 per cent dividends in the form of stock and a 5 per cent bonus issuance, reaffirming its commitment to high and steady shareholder returns.

 

HDBank’s leadership highlighted two key drivers for fourth-quarter growth: the seasonal surge in credit demand and expected improvement in asset quality amid a favourable macro-economic environment.

 

Robust credit growth is expected to offset pressure on net interest margins.

 

The bank sold over VNĐ37 trillion in loans to another bank under the State Bank of Vietnam’s restructuring programme in the first nine months and aims for up to 35 per cent credit growth in 2025.

 

It targets a net interest margin of 4.8–5.0 per cent, slightly below the 5.09 per cent recorded in the first nine months, reflecting some pressure on funding costs.

 

Liquidity remains strong, with the loan-to-deposit ratio at 71.3 per cent, well below the 85 per cent regulatory ceiling, and short-term deposits used for medium- and long-term loans at 22.3 per cent.

 

HDBank has also secured over $500 million in foreign loan at competitive costs, and the prospect of the US Federal Reserve cutting interest rates could further reduce HDBank’s dollar funding costs in the near term.

 

Non-interest income continues to grow, supported by payment service fees, bancassurance and debt recovery, while the new legal framework on collateral seizure has improved bad debt handling.

 

HDBank’s leadership expects the non-performing loan ratio to improve significantly from late 2025 to early 2026, driven by a stable macro-economic environment, recovering real estate liquidity, and more favourable regulations on collateral handling, and targets bringing the bad debt ratio down to around 2 per cent by the end of this year.

 

The bank's management said it remains on track to exceed VNĐ21 trillion in profits for 2025, and targets compounded annual growth of 25–30 per cent through 2030.

 

Its subsidiaries also target strong growth: HD SAISON targets 15–16 per cent loan growth and VNĐ1.5 trillion in profits, while HD Securities eyes VNĐ1 trillion in profits to maintain its leading position in the industry in terms of ROE performance.

 

With a solid financial base, improving asset quality, and successful foreign capital mobilisation, HDBank is well-positioned to accelerate growth in the last quarter of the year.

 

Its strategy for 2025–30 will focus on efficient growth, risk management, digital transformation, and expanding the retail customer base. — VNS

 

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