Credit increases by more than 6%, actively providing capital for the economy
According to the financial report just released, in the first quarter of 2024, HDBank’s total consolidated operating income reached VND 7,752 billion, an increase of 37% compared to the same period in 2023. Profit before tax reached VND 4,028 billion, up 46.8% compared to the same period last year. With this result, HDBank continues to maintain its position as the most efficient bank in the industry, with a return on equity (ROE) of up to 26.7%.
As of March 31, 2024, HDBank’s total assets reached VND 602,552 billion. Total mobilized capital reached VND 534,936 billion, of which mobilization from customers reached VND 378,829 billion, an increase of 2.2% compared to the end of 2023.
Credit growth in the first quarter of 2024 reached 6.2%, bringing the total outstanding loan balance to VND 375,385 billion. Credit focuses on priority industries and customer segments that are the driving force of the economy, such as agriculture, rural areas, small and medium enterprises, supply chain financing, etc. At the same time, the Bank also implemented many preferential credit programs with low interest rates to support customers in increasing their access to capital and developing their production and business. Credit quality continues to be controlled with a low individual bad debt ratio of less than 2%, in line with the plan set out.
Continuing the positive results in 2023, in the first quarter of 2024, HDBank proactively established good balances in terms of liquidity and capital safety. By the end of the first quarter of 2024, the loan-to-deposit ratio at HDBank was 73.4%, much lower than the limit of 85% as regulated; the ratio of short-term capital to medium- and long-term loans was 25.4% compared to the current limit of 30%; the capital adequacy ratio (CAR) under Basel II reached over 13.8%, which is among the best in the industry.
At the Annual General Meeting of Shareholders on April 26, the shareholders of HDBank approved the profit distribution plan for 2023 (distributed this year) with a dividend rate of up to 30%, including cash and shares. Notably, HDBank also sets a dividend plan for 2024 (distributed in 2025) of up to 30%, including 15% in cash, continuing the tradition of paying regular annual dividends at a high rate in the industry.
Promoting the application of technology and digital transformation to enhance the product and service experience journey, HDBank continued to record a strong increase in the number of banking and consumer finance customers, surpassing 18 million by the end of the first quarter of 2024. The number and transaction value of customers on digital channels continued to grow positively. In the first quarter, the number of new customers using e-banking increased by over 300%. The number of customers with transactions on HDBank’s digital platform increased by 48%, and the number of transactions via digital channels increased by 128% compared to the same period last year.
This result, together with the strategy of promoting digitalization, continues to help the Bank optimize its operating process, increase productivity, and reduce the cost-to-income ratio (CIR) from over 34.6% in the same period last year to 31.7%.
Pioneer in implementing ESG strategy, spreading good values to the community
Pioneering in implementing ESG (Environment, Social, and Governance), HDBank is one of the first banks in Vietnam to develop a Sustainable Development Report. At the same time, the bank has been gradually integrating ESG requirements into its operations and lending activities, with a focus on customers in type II cities, agricultural and rural areas.
In addition to its vibrant business activities, HDBank continues to implement a series of social welfare activities, presenting health insurance cards and charity houses to disadvantaged people, caring for people in remote areas, and sponsoring the national futsal tournament for the eighth consecutive year, contributing positively to the development of the community and society, helping to spread good values.
