“HDBank: Forging a Leading Multifaceted Banking Powerhouse with a Sustainable Growth Strategy”

HDBank’s Top Position and Positive Results Support Customer Assistance and Sustainable Growth

According to the conference information, in the first half of 2024, HDBank achieved excellent results and ranked among the top 10 fastest-growing banks in the industry with a pre-tax profit of 8,165 billion VND, a 48.9% increase compared to the same period last year. HDBank continues to assert its leading position in the industry with both ROE and ROA indicators, reaching high levels of 26.1% and 2.1%, respectively.

For the second half of 2024, HDBank’s total income reached 16,045 billion VND, a 32.9% increase compared to the previous year. The bank continues to enhance its safety buffer, with the capital adequacy ratio (CAR) under Basel II reaching 13.94%; the consolidated non-performing loan ratio was controlled at 1.59%, and at the parent bank, it was below 1.37%.

The bank’s lending activities also recorded positive results in the first half of the year, with a growth rate of 13.3%, twice the industry average. This includes a continued focus on retail lending, along with a strategy of shifting capital to develop local areas by concentrating on lending to the agriculture and rural sector, in addition to its strengths in value chain lending, SME lending, green credit, and export industries…

At the conference, Mr. Pham Van Dau, CFO of HDBank, shared that in the first half of 2024, the bank’s funding cost significantly decreased to 1.7% from the beginning of the year and 1.9% compared to the same period. Additionally, the net interest margin (NIM) exceeded expectations, reaching 5.7% against a target of 5.1%. The cost-to-income ratio (CIR) was maintained at 34.2% despite the bank being in a phase of aggressive investment in its network and technology. “These positive results create favorable conditions for HDBank to continue stabilizing lending rates, supporting customers, and moving towards sustainable development,” said Mr. Pham Van Dau to investors.

Recently, HDBank carried out the first dividend payment for 2023, with a ratio of 10% in cash, as part of its plan to distribute the highest dividends in the system at 30%. Mr. Pham Van Dau affirmed that, based on the current business results, the bank could maintain its tradition of high dividend payouts in 2025, as it has done in previous years.

At the conference, HDBank’s shareholders asked the bank’s leaders about the HDB stock price. Mr. Tran Hoai Nam, Deputy General Director of HDBank, assessed that the HDB stock price is currently at a low level according to the P/B and PE ratios. With a bank that has many good indicators like HDB (ROE reaching 26.1%), the valuation of this stock is much lower than the average, and there is still a lot of room for the development of digital banking.

Currently, HDB’s P/B is 1.4 times, and P/E is not yet 6.x compared to the pre-fluctuation period when this ratio reached 2.3 times and P/E was over 10.x, almost double the current figures. As the market improves and short-term fluctuations subside, the valuation will return to pre-fluctuation levels.

Shaping the Strength of a Multi-functional Bank with a Sustainable Development Strategy

The impressive 2024 semi-annual business results, along with the accumulated internal strength over 11 years of sustainable growth, have helped HDBank further strengthen its strategy to become a top multi-functional and modern bank in Vietnam.

At the conference, HDBank’s leaders shared that the bank is in the process of accelerating its digitalization strategy and investing in technology, especially in the application of artificial intelligence (AI) and big data to optimize financial services. This is also a key driver for expanding the customer base and achieving positive results.

Specifically, in the first half of 2024, the number of new customers attracted through digital channels increased by 2.5 times compared to the same period last year. 94% of customer transactions were conducted through digital channels, while the number of e-banking transactions increased by 130% compared to the same period.

Along with digital channels, HDBank continues to make its mark in the traditional model as one of the few banks that have successfully established a network of branches and transaction offices in all 63 provinces and cities nationwide.

In addition to digitalization initiatives in internal operating processes, HDBank has implemented several projects related to complex big data based on the RFM (Recency, Frequency, Monetary) model to support the bank in making effective business decisions. This model helps HDBank understand customer behavior and predict future consumption trends, allowing the bank to focus resources on potential customers and build sales and product strategies that cater to customer needs, increasing conversion rates and cross-selling opportunities for business units.

The success of each business cycle and the long-term vision are attributed to HDBank’s consistent strategy of combining business growth with community criteria. Recognizing the importance of its sustainable development being linked to environmental, social, and stakeholder responsibilities, HDBank has integrated specific requirements related to Environment, Social, and Governance (ESG) into its business strategy. Recently, HDBank became the first bank in 2024 to publish a Sustainability Report following international standards and committed to achieving the goal of becoming a Net Zero Bank before 2050.

Throughout this time, HDBank has demonstrated its commitment to greening the economy by promoting green credit, supporting the community through participating in preferential lending packages, financing green energy projects, and promoting sustainable development and green energy…