HDBank's profits reached $501.7 million in nine months of 2024. Photo: HDBank

The bank's return on equity (ROE) was 26.7 per cent, while the bad debt ratio (according to the State Bank of Vietnam (SBV)'s regulations) was low at only 1.46 per cent. The bank is implementing a stock dividend payout ratio of 20 per cent.

This positive result affirms HDBank's position as the top multipurpose retail bank with a solid foundation, financial health, the ability to maintain strong growth for many consecutive years, and good profitability. HDBank has adopted a sustainable development strategy and expedited its digital transformation process towards high-quality retail customers and small-and medium-sized enterprises (SMEs).

Credit growth stands at 16.6 per cent

According to the financial statement, HDBank's pre-tax profit reached VND4.49 trillion ($177.4 million), up 42.7 per cent on-year. The bank generated pre-tax profit of VND12.7 trillion ($501.7 million) in the first nine months of 2024, up 46.6 per cent, and completed 79.8 per cent of its profit plan for the whole year. ROE reached 26.7 per cent while the return on assets (ROA) reached 2.2 per cent, which were among the leading group in the industry.

The consumer finance segment at HD SAISON rebounded strongly, with outstanding loans increasing by 15 per cent on-year. Before-tax profit reached VND906 billion ($35.8 million), up 126 per cent on-year, with ROE of 22.9 per cent. HD SAISON is the efficient consumer finance company leading the industry. The company currently owns nearly 26,000 financial transaction points in 63 provinces and cities, serving over 13 million customers.

As of September 30, HDBank's total consolidated assets were worth over VND629 trillion ($24.8 billion), which was a 23.9 per cent increase from the previous year. Mobilised capital reached VND559 trillion ($22 billion), up 24.8 per cent on-year. Outstanding loans reached VND412 trillion ($16.3 billion), a 16.6 per cent increase from the beginning of the year.

Digital banking and sustainable development strategies promote growth

HDBank has focused on promoting lending to key drivers for economic growth such as lending to the rural and agricultural sectors, SMEs, chain financing, business households, local traders, and green finance.

HDBank's capital adequacy ratio (CAR) under Basel II reached 14.8 per cent. Other operational safety indicators have reached a good level given that its sustainable development strategy comprehensively integrates ESG (environmental, social, and governance) into operations.

In addition, its digital business activities continued to be robust. As of September 30, 95 per cent of customer transactions were conducted via digital channels. Digital channels also contributed 77 per cent of the number of new customers. The number of transactions and deposit balances on the digital channel grew exponentially.

At the same time, the bank also accelerates the digitisation of customer journeys, operational processes, big data analysis, and the application of robots and AI to serve customers, thereby improving productivity and optimising costs. As a result, the operating expense/income ratio decreased to 34.3 per cent from the same period last year.

Dividend payout ratio of 30 per cent

With a tradition of regularly paying dividends, in Q3, HDBank has implemented a 2023 dividend payment of 30 per cent. Among them, the bank paid a dividend of 10 per cent in cash in July. The bank is completing procedures for dividend payment in shares at a ratio of 20 per cent.

In parallel with its business activities, HDBank proactively implements corporate social responsibility with activities to support customers to recover production and business after Typhoon Yagi through a preferential credit package of VND12 trillion ($474 million). The bank also supports people to recover after natural disasters in northern localities. Recently, HDBank and its member units contributed VND80 billion ($3.16 million) to a nationwide programme to eliminate temporary houses and dilapidated houses nationwide launched by the prime minister.

HDBank's sustainable development strategy has been highly appreciated with prestigious awards. The Ho Chi Minh City Stock Exchange (HSX) named HDBank for the Vietnam Sustainable Development Index (VNSI) for the fifth consecutive year. VNSI includes the top 20 companies with the highest sustainable scores listed on HSX, selected from the 100 largest listed companies and evaluated based on three aspects of environmental, social, and governance. The bank was also named Best Green Financing in Vietnam at The Asian Banker Vietnam Excellence Awards.

With positive results after nine months, HDBank has reinforced its position in the leading group in the banking industry. The bank is capable of maintaining high and continuous growth and is ready to complete the plan agreed at its AGM.