The success of the 2024 Annual General Meeting of Shareholders (AGM) continues to affirm shareholders’ trust in HDBank’s strategic goals as it approaches its 35th anniversary of high and sustainable growth.
Shareholders commended the Board of Directors for HDBank’s outstanding 2023 business results.
Extending the sustainable growth streak of over a decade, 2023 was a landmark year for HDBank, achieving its highest results to date. It was also the second year that Mr. Kim Byoungho assumed the position of Chairman of the Board of Directors.
With his extensive experience and significant contributions to the development of the Vietnamese market and banking system during his tenure as CEO of Hana Bank (the second-largest bank in South Korea), Mr. Kim Byoungho is driving HDBank’s pioneering approach in its strategy of internationalizing operations, adopting best global practices, and aiming to establish a model for effectively implementing ESG (Environmental, Social, and Governance) standards in Vietnam.
In his opening remarks at the 2024 AGM, Chairman Kim Byoungho reflected on 2023 as a year of economic challenges domestically and internationally. HDBank overcame these challenges through consistent and flexible strategic operations, proactively seizing opportunities to accomplish and surpass most of the targets set by shareholders.
At the end of 2023, all targets were exceeded. HDBank’s total assets reached over VND 602,000 billion, a growth of 44.7% compared to 2022. Total mobilized capital exceeded VND 536,000 billion, an increase of 46.5%. Credit balance surpassed VND 353,000 billion, up 31.8% over the same period. Pre-tax profit reached VND 13,017 billion, a 26.8% increase year-on-year. These results led to a return on assets (ROA) of over 2% and a return on equity (ROE) of 24.2%, maintaining its leading position in the market.
The capital adequacy ratio (CAR) reached 12.6%, well above the requirement set by the State Bank of Vietnam. The non-performing loan ratio stood at a mere 1.5%, one of the lowest in the entire banking sector, demonstrating strong financial safety and stability.
HDBank’s stock, HDB, was officially included in the VN Diamond Index by the Ho Chi Minh City Stock Exchange in 2023 and maintained its position in the VN Sustainability Index (VNSI). HDBank also garnered prestigious awards, including the Board of the Year Award from the Vietnam Institute of Directors (VIOD) and two accolades at the 2023 Outstanding Listed Companies Awards: Best Annual Report (among large-cap companies) and Best General Meeting of Shareholders.
Beyond its core business activities, HDBank has proactively promoted strategic initiatives such as digital transformation, comprehensive implementation of Basel III, ESG integration, and programs to support customers in overcoming difficulties.
“These positive business results testify to the Bank’s proactive spirit, adaptability, and ability to seize opportunities amid challenges. HDBank continuously enhances risk management and corporate governance by implementing international standards such as Basel III and ESG initiatives, ensuring full compliance with regulations while striving to adopt best practices and fulfill our commitments to shareholders”, emphasized Mr. Kim Byoungho, Chairman of the Board of Directors.
Speaking at the AGM, Ms. Fernanda Lima, representing Leapfrog Investments, shared her impression of Vietnamese businesses with female leaders like Dr. Nguyen Thi Phuong Thao, Vice Chairwoman of the Board of Directors at HDBank, a strategic investor and partner.
Ms. Lima added that Leapfrog Investments has actively collaborated with HDBank in recent years to develop programs and plans related to ESG development and credit initiatives for female customers. In 2024, the fund pledges to continue its strong partnership with HDBank to further enhance solutions, products, governance, and ESG implementation in the Bank’s development strategy, especially in green investments, agriculture and rural areas, women-owned enterprises, and community engagement.
Sharing his thoughts at the AGM, Mr. Junjie Tong, representing Affinity Equity Partners, also commended HDBank’s sustainable growth trajectory over the years. “With a profit growth rate of over 25%, HDBank is undoubtedly one of the best-performing banks. Since our investment in HDBank, we have witnessed its remarkable growth, with profits soaring from over VND 3,000 billion to VND 16,000 billion. On behalf of the shareholders, I would like to express our appreciation to the Board of Directors”, said Mr. Tong.
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Delighting shareholders with stable growth and an attractive dividend plan of up to 30%
In 2024, HDBank continues to target high growth while formulating a comprehensive ESG strategy. The Bank sets a pre-tax profit target of VND 15,852 billion, a 21.8% increase compared to 2023, with an expected ROE of 24.6%.
By the end of 2024, the Bank aims to surpass VND 700,000 billion in total assets, a 16% increase. Total mobilized capital is projected to reach over VND 624,000 billion, a 16% increase. Total credit balance is expected to exceed VND 438,000 billion, in line with the assigned credit growth target.
Mr. Pham Quoc Thanh, CEO of HDBank, assessed that the banking industry would continue to face challenges and uncertainties in 2024 but also presented opportunities and advantages from previous achievements. HDBank is well-positioned to seize these opportunities and build on its momentum, committed to building a robust, comprehensive, efficient, safe, and sustainable system to accomplish its set goals and maintain its development on a digital foundation. The Bank will also actively implement initiatives outlined in its five-year strategy.
Action programs for 2024 will involve strategic transformation initiatives aligned with development goals for the 2024–2025 period, focusing on capital mobilization, including Tier 1 and Tier 2 capital, to meet the anticipated capital requirements for business strategies in 2024. The Bank remains steadfast in executing the CASA action program to significantly improve the CASA ratio and neutralize funding costs.
HDBank will concentrate on constructing and refining customer journeys as a strategic transformation priority. The Bank will also advance its green development strategy, sustainable finance, and effective ESG implementation, continuously enhance its green credit framework and develop sustainable financial products, foster collaborations with international organizations, financial institutions, and domestic ministries and agencies to promote green credit and sustainable finance, and strive toward becoming a Net Zero Emissions Bank.
In response to a shareholder’s inquiry regarding the feasibility of the 2024 business plan amid economic challenges, Mr. Pham Quoc Thanh affirmed that HDBank has a tradition of setting ambitious plans and consistently achieving or surpassing them.
According to the CEO, despite market fluctuations over the past decade, HDBank has consistently demonstrated resilience, achieving high and sustainable growth and fulfilling its business plans without disappointing its shareholders. This solid foundation gives the Bank confidence in overcoming future challenges and uncertainties.
2023 was a challenging year, yet HDBank achieved remarkable growth, recording a profit of VND 13,017 billion, the highest in its history, while effectively managing non-performing loans, and significantly expanding its customer base. These accomplishments are attributed to HDBank’s unique strengths, including its diverse customer base, robust governance, market insight, and adaptability to various scenarios, enabling the Bank to accomplish its goals. Additionally, positive outcomes from digital transformation and the implementation of digital banking, coupled with enhanced trust and support from authorities and partners, bolster HDBank’s confidence in achieving and surpassing its targets.
Mr. Pham Quoc Thanh further shared that in the first quarter of 2024, HDBank attained a pre-tax profit of over VND 4,000 billion, a 46% increase year-on-year, ensuring progress toward its goals. Consequently, the Bank’s ROE rose to 26.2%, reinforcing its position as one of Vietnam’s most efficient banks.
Regarding profit distribution, the AGM approved a dividend payout of 30% for 2023 (to be executed in 2024). The cash dividend rate is set at 10%, while the stock dividend rate is 20% (previously 15%). With this dividend payout, HDBank leads the industry in offering high and consistent dividends to its shareholders.
In addition to dividend distribution, HDBank proposed a plan to increase its charter capital by over VND 6,000 billion to over VND 35,101 billion.
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Sharing his insights at the AGM, Mr. Petri Deryng, Founder and Manager of PYN Elite Fund, a long-term partner of HDBank, acknowledged the Bank’s impressive growth trajectory over the years.
ESG – The Key to HDBank’s High and Sustainable Growth
Apart from the business plan and profit distribution scheme, one of the focal points of the 2024 AGM was HDBank’s development and implementation of its ESG strategy.
HDBank is among the first banks in Vietnam to publish a Sustainability Report. In 2023, the Bank issued the Regulation on Environmental, Social, and Governance (ESG) Policy and the Regulation on Environmental and Social Risk Management in Credit Activities to enhance its sustainable operations in serving customers and collaborating with partners.
At the AGM, Chairman Kim Byoungho shared that, regarding the environmental aspect, HDBank aims to comprehensively report its ESG performance, striving toward becoming a net-zero emissions bank. In terms of governance, HDBank stands out as one of the few banks in Vietnam with an independent Chairman. As for the social aspect, the Bank has actively contributed to social welfare and community development, particularly in creating financial products for small and medium-sized enterprises (SMEs) owned by women.
Mr. Juenemann Marc Oliver, representing DEG – a development finance institution of Germany’s KFW Development Bank, which has invested in HDBank since 2020, expressed his support for the Bank’s ESG journey. Over the years, DEG has assisted HDBank in adopting new initiatives to obtain carbon credits and transition to a green development path.
“With a particular focus on ESG and governance issues, we believe that good governance is key to creating value for shareholders and strengthening organizations. We excel in corporate governance, and it is also our focus to provide support and accompany HDBank in this journey, as well as encourage strong initiatives for the future, as demonstrated by HDBank”, said the representative from DEG.
In her closing remarks, Dr. Nguyen Thi Phuong Thao stated that after more than a decade of transformation and approaching its 35th anniversary, HDBank has defined a clear strategic vision to become a leading bank in the market, a dynamic and modern retail bank pioneering the development of digital products and services in Vietnam, and a happy and humane bank that takes the initiative in community and social welfare activities, promoting business trends for disadvantaged groups.
“I am proud of our significant strides in promoting sustainability and corporate social responsibility. ‘Green Thinking, Sustainable Growth’ has been established as our guiding principle. By integrating ESG standards into HDBank’s business practices, we not only create long-term value for shareholders but also positively impact the community we serve and the globe,” affirmed the female leader.
The strategic investor, who has been instrumental in bringing about transformative changes at HDBank, resulting in its high and sustainable growth over the past decade, reaffirmed that the unwavering support and commitment of organizations, funds, and investors have been pivotal in propelling the Bank toward higher goals and more remarkable achievements in the future.
Dr. Nguyen Thi Phuong Thao, with her international education in banking, is also the youngest female banking expert in Vietnam to hold senior management positions at joint-stock commercial banks at the age of 26. Her investments and co-founding of these banks have contributed to the development of Vietnam’s private joint-stock commercial banking system over the last three decades.
Looking ahead, Dr. Nguyen Thi Phuong Thao believes that Vietnam is emerging as a new investment destination globally, presenting a significant opportunity to assert the country’s economic strength and potential. “With a confident, resilient, dynamic, and creative mindset, along with the unity of our shareholders, we are well-prepared to overcome challenges and seize these opportunities to materialize our growth prospects in 2024 and beyond”, she concluded.
