The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank, HOSE: HDB) has reported impressive results in the third quarter of this year, with pre-tax profits increasing by a record 51 percent year-on-year to over 1.23 trillion VND (53.4 million USD).

An HDBank transaction office in Ho Chi Minh City (Photo courtesy of HDBank) 

Total operating income was 2.87 trillion VND, a year-on-year increase of 36 percent.

Net interest income accounted for 2.5 trillion VND, up 42 percent, and net income from services contributed 149 billion VND, up 29 percent compared to the third quarter of 2018.

Operating costs were well controlled and increased by only 12 percent. Expenses for bad debts were low thanks to high asset quality.

The non-performing loan ratio for the parent bank was only 1.1 percent, and the consolidated non-performing loan ratio, including the consumer finance operations, was 1.5 percent.

This is a low level of bad debts, something that HDBank has controlled well over the years.

As of September 30 HDBank’s total assets were worth 217.2 trillion VND.

Retail banking and financing for small- and medium-sized enterprises continued to be key growth drivers.

With its strong capital resources and excellent risk management capability, HDBank has received approval from the State Bank of Vietnam to adopt Basel II standards ahead of schedule.

The capital adequacy ratio (CAR) as of September 30 was 11 percent.

HDBank is a pioneer in providing ‘green’ credit, supporting renewable energy projects and high-tech agricultural projects.

As of September 30 it had set aside nearly 10 trillion VND to finance commercial solar power projects and rooftop solar power with a total capacity of 725 MWp.

HDBank has also speeded up its digital banking transformation to offer customers a more convenient and safer experience and make its operations more efficient.

Many utilities offered by the bank in its mobile banking application are deeply appreciated by users.

They include instant money transfer, electricity, water, telephone, Internet, and cable TV bill payment, payment of loans, card services, booking air tickets on more than 30 domestic and international airlines, and purchase of train and film tickets.