DNVN - Ho Chi Minh City Development Joint Stock Commercial Bank ( HDBank - Stock code: HDB) has just announced its financial report for the second quarter of 2024 with pre-tax profit for the first half of the year reaching VND 8,165 billion, up 48.9% over the same period. Operational efficiency and safety indicators continue to be improved, affirming the right direction of the sustainable development strategy.
High and steady credit growth, leading ROE
According to the report dated June 30, 2024, HDBank recorded a credit growth of 13.0% compared to the beginning of the year, continuing to direct credit flows to sectors that are drivers of economic growth such as agriculture, rural areas, SMEs, chain finance, green credit, tourism, etc. Along with high sustainable credit growth, HDBank ensures capital safety indicators and bad debt at the lowest level in the industry. In which, the capital safety ratio CAR according to Basel II standards reached 13.9%. The consolidated bad debt ratio, including consumer finance as prescribed in Circular 11 of the State Bank, is only 1.59%.
After half of 2024, HDBank recorded total revenue of VND 16,045 billion, up 32.9% over the same period. Pre-tax profit reached VND 8,165 billion, up 48.9% over the same period due to increased operational efficiency and application of HDBank's digital transformation initiatives. Return on equity (ROE) was 26.1%, ROA was 2.1%, both higher than the previous year.
Continuing the tradition of paying attention to investors' interests through high and continuous annual dividends, this year shareholders will receive dividends of up to 30%. HDBank has completed paying a 10% cash dividend and is continuing to implement a 20% stock dividend, expected in the third quarter.
As of June 30, 2024, HDBank's total assets exceeded VND 624,000 billion, up 29% over the same period last year. Capital mobilization reached over VND 552,000 billion, of which deposits from digital banking channels notably reached nearly VND 40,000 billion, 5 times higher than the same period.
New steps in digital and green banking
In the first 6 months of 2024, HDBank marked a new step forward in its journey to comprehensively implement its sustainable development strategy (ESG). Recently, HDBank became the first bank to publish a sustainable development report, prepared according to international standards. Through the report, HDBank clearly demonstrated its commitment to implementing the principles of sustainable development, towards the goal of a Net Zero Bank by 2050. HDBank pioneered the establishment of a Sustainable Development Committee under the Board of Directors to direct and supervise the comprehensive integration of ESG standards into all bank operations.
Environmentally friendly “green” banking, along with “digitalization”, developing modern digital business and researching the application of artificial intelligence (AI) technology, will continue to be actively promoted by HDBank in the first half of 2024. Specifically, the number of new customers attracted through digital channels is 2.5 times higher than the same period last year. 94% of customer transactions are conducted on digital channels. The number of e-banking transactions increased by 130% over the same period.
In addition to launching new products and convenient cashless payment solutions, HDBank completed ahead of schedule the implementation of biometric technology using facial recognition according to Decision No. 2345/QD-NHNN, helping to improve transaction safety and security for customers. Previously, HDBank pioneered the launch of the "HDBank Rural" application dedicated to developing agriculture and rural areas in a modern, effective and sustainable manner.
Through its growing business results and new steps in digitalization and greening, prestigious organizations around the world have recognized HDBank. On July 4, the Bank was honored to receive two awards from Asian Banking & Finance (ABF) Magazine: “Retail Bank of the Year” and “Digital Banking and Payment Initiative of the Year in Vietnam” alongside major financial institutions in the Asian region.
Previously, the bank was also honored to receive the award “Best Bank for Sustainable Finance” voted by The Asset magazine. In addition, HDBank’s position in the international arena continued to be affirmed when it entered the TOP 500 largest enterprises in Southeast Asia based on the rankings of the prestigious Fortune magazine.
In parallel with business and sustainable development, HDBank always actively joins hands for a brighter Vietnam, especially in the fields of education and training, healthcare, culture and sports... notably the programs accompanying the HDBank National Futsal Championship, HDBank Student Futsal, HDBank International Chess Tournament...
HDBank believes that the very positive results in the first 6 months of the year and the effective application of new initiatives will be a good foundation for HDBank to continue to develop further in 2024.
Minh Anh
Source: https://doanhnghiepvn.vn/kinh-te/tai-chinh-ngan-hang/trien-khai-chien-luoc-phat-trien-ben-vung-hdbank-bao-lai-8-165-ty-dong-no-xau-chi-1-59/20240731111419665
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