HDBank has signed cooperation deals with many international organizations to stimulate green finance for the Vietnamese agricultural sector

HDBank maintained its outstanding business performance in the second quarter, with total assets reaching VND483,936 billion by June 30, 2023, a 26% increase from the same period last year. Total capital mobilization reached VND430,123 billion, a 17.4% increase from the beginning of the year, of which customer deposits reached VND309,645 billion, a 44% increase.

HDBank achieved a remarkable performance in the first half of 2023, with a total outstanding loan balance of over VND293,129 billion, an increase of 9.3% compared to the beginning of the year. This was driven by the sustained credit growth and the continued digitalization expansion, which enhanced customer acquisition and operational efficiency. HDBank reported a pre-tax profit of nearly VND5,500 billion in the first six months of the year. With this profit growth trend, 2023 is expected to be the 10th consecutive year of growth for HDBank.

HDBank’s continuous growth is attributed to its focus on lending to agriculture and rural areas. According to a representative of HDBank’s leadership, the bank successfully implemented financing for large-scale chains in the rural agricultural market, such as Loc Troi chain, CP chain and Unilever chain. This area also concentrated on small and medium-sized enterprises (SMEs) and business households. HDBank allocated up to VND143 trillion, equivalent to more than 52% of total outstanding loans, to meet their needs as of June 30, 2023.

Investing in this field not only helps to improve the lives of farmers but also contributes to the stability and sustainability of the economy. Banks' prioritization of loan capital plays an extremely important and meaningful role in promoting agricultural and rural development.

In response to the State Bank’s orientation in lending for agricultural and rural development, HDBank has been advocating for promoting products and services in the driving force of the economy for many years, including rural agriculture, green credit, production and business, renewable energy, rural agriculture, project lending activities to reduce energy consumption and reduce CO2 emissions, waste treatment/recycling.

In this strategic direction, HDBank also signed cooperation agreements worth hundreds of millions of dollars in capital and consulting activities with many international organizations such as the International Finance Corporation (IFC), the German Development Finance Institution and a subsidiary of KfW Group (DEG), French Development Finance Organization (Proparco) and Affinity International Investment Fund to stimulate green finance for the Vietnamese agricultural sector.

Not only in the current period when the economy faces many difficulties and challenges, but also in the previous period when the COVID-19 pandemic or the financial market faced many shocks due to fluctuations in the real estate and bond sectors, rural agriculture still continued to grow steadily and was the backbone of the economy. By adopting a development strategy associated with this pillar, HDBank has achieved sustainable growth for many years.

Statistics showed that by focusing on agricultural and rural lending in addition to strictly controlling risks and comprehensively applying Basel III, HDBank continued to be the bank with the highest profitability in the banking system with ROAA and ROAE reaching over 2% and over 22% respectively in the first six months of 2023.