HDBank will continue to pursue its sustainable development orientation in its corporate governance this year, creating sustainable assets for society, bringing values to local and foreign partners and investors, and creating a professional working environment with excellent remuneration for its employees.

Last year marked the 10^th anniversary of the bank’s innovation progress and five years since its initial public offering (IPO).

Its unceasing efforts over the years have brought HDBank significant achievements with its total assets exceeding VND416 trillion ($18 billion) at the end of 2022, total deposits topping VND366 trillion ($15.6 billion) and total credit being nearly VND268 trillion ($11.4 billion).

Speaking at the AGM, Pham Quoc Thanh, CEO of HDBank, said the bank has a strong focus on risk management, constantly strengthens its systems and processes, and uses technology to monitor, forecast and promptly identify risks.

Despite the market volatility last year, all of HDBank’s activities went smoothly, with its safety performance indicators meeting State Bank of Vietnam (SBV) norms.

HDBank’s asset quality was also at a good level with the consolidated and separate non-performing loan ratio at 1.67 per cent and 1.3 per cent, respectively, much lower than the industry average.

HDBank’s capital adequacy ratio (Basel II) was 13.4 per cent, among the highest in the industry. Meanwhile, HDBank’s Loan to Deposit ratio was 76.6 per cent, lower than the maximum ratio of 85 per cent required by the SBV.

Other quantitative and qualitative indicators were also consistently good. Specifically, HDBank’s profit before tax exceeded VND10 trillion ($426 million) for the first time. HDBank’s return on equity and return on assets were 23.5 per cent and 2.08 per cent, both higher than last year and among the highest in the sector. In addition, HDB stock remains attractive to foreign investors amid the recent stock market volatility.

With the positive business results of 2022, shareholders have approved dividends distribution of 10 per cent in cash and 15 per cent in shares for 2022.

At the meeting, Kim Byoung-ho, the chairman of Board of Directors – Independent BOD Member, said,“The macroeconomic landscape of the world and Vietnam have brought significant challenges to the country but also provided great opportunities for those who have the know-how. HDBank achieved strong yet sustainable growth last year as we ensured asset quality ratios were well-managed, and the growth of both credit and deposits topped the industry.”

Amid the global financial crisis and increased uncertainty this year, HDBank continues to pursue its sustainable development orientation and strategy to become a leader in retail, small- and medium-sized enterprises and consumer banking, creating sustainable assets for itself and for society.

The bank will provide more products and services targeting industries and sectors that are key contributors to economic growth, such as agriculture and rural development, green financing, manufacturing and trading, renewable energy, waste treatment, and recycling, as well as focusing on retaining its top position in supply chain financing.

It will continue to offer preferential loans to those affected by the pandemic and workers, and for digitalisation of business and operations.

HDBank boasts a large and promising customer ecosystem and a number of branches and transaction offices. The bank has achieved strong growth after more than three decades of development, especially during the past five years since the bank’s IPO.

Pham Quoc Thanh, CEO, believes the bank is set to maintain strong growth in 2023. Accordingly, total assets will exceed VND520 trillion ($22.1 billion), up 25 per cent from last year, while charter capital is set to reach nearly VND29.3 trillion ($1.24 billion), up 16 per cent. Total deposits are to rise to nearly VND460 trillion ($19.6 billion), up 25 per cent. Meanwhile, total credit should exceed VND333.5 trillion ($14.2 billion), which is in line with the credit growth target prescribed by the SBV.

HDBank also aims to maintain its non-performing loan (NPL) ratio at a low level of less than 2 per cent. It will focus on sustainable strategies to enhance both return on equity and return on assets. Its profit before tax for 2023 is likely to be VND13.19 trillion ($562 million), up 29 per cent.

HDBank is also a pioneer in implementing Basel III standards for corporate governance and internal risk management regulations to improve its operations.

It is committed to mobilising all resources to implement a sustainable development strategy that creates sustainable assets for society.

Tran Dinh Cuong, deputy director of the SBV’s Ho Chi Minh City Branch, said, “The SBV appreciates HDBank for its sustainable development strategy, especially its risk management to ensure safety, keeping its consolidated NPL ratio below 2 per cent and complying with Basel III.”

Le Nhi Nang, chief representative of the State Securities Commission (SSC) in Ho Chi Minh City, said, “Based on the SSC’s monitoring and the reports presented today, we consider HDBank fully compliant with corporate governance regulations by disclosing transparent information and allowing investors to access information about its operations more easily.”

Sixteen proposals made by the board of directors at the meeting were met with 90 per cent approval.

HDBank will proceed with its plan to participate in the restructuring of weak credit institutions and buy stakes in a securities company to complete its product and services portfolio.

99.42 per cent of shareholders approved its growth strategy for 2023.

Concluding the meeting, Nguyen Thi Phuong Thao, HDBank’s standing deputy chairwoman, said, “With its consistent achievements over the years, HDBank is confident of achieving the targets approved by its shareholders, winning the trust of the SBV and SSC and bringing the maximum benefits to customers, shareholders and employees.”