This positive business result once again affirms HDBank's position in the top multi-functional retail banks with a solid foundation, healthy financial health, the ability to maintain strong and continuous growth for many years, and good profitability. This bank has a sustainable development strategy, a strong digital transformation process aimed at high-quality retail customers and small and medium enterprises (SMEs), especially in urban areas of type 2 and rural areas in potential value chains.
Credit growth 16.6%.
According to the financial report, HDBank's pre-tax profit in the third quarter reached VND 4,490 billion, up 42.7% compared to the third quarter of 2023 and accumulated 9 months VND 12,655 billion, up 46.6% and completed 79.8% of the annual profit plan. ROE reached 26.7%, ROA reached 2.2% in the leading group of the whole industry.
The consumer finance segment at HD SAISON continued to recover strongly with outstanding loans increasing by 15% over the same period. Pre-tax profit reached VND906 billion, up 126% over the same period, ROE 22.9%, making it the most efficient consumer finance company in the industry. The company currently owns nearly 26,000 financial transaction points in 63 provinces and cities, serving over 13 million customers.
As of September 30, 2024, total consolidated assets were VND 629 trillion, up 23.9% year-on-year. Capital mobilization was VND 559 trillion, up 24.8% year-on-year. Outstanding credit reached VND 412 trillion, up 16.6% year-on-year.
Digital Banking and Sustainable Development Strategy Drive Growth
HDBank directs capital flows to sectors that are drivers of economic growth, such as rural agriculture, small and medium enterprises, chain finance, business households, small traders, green credit, etc. The bad debt ratio according to the State Bank of Vietnam's regulations is only 1.46%, lower than the industry average; Capital adequacy ratio (CAR) according to Basel II standards is up to 14.8%. Other operational safety indicators are all at a good level in the sustainable development strategy that comprehensively integrates ESG factors into operations.
In addition, digital business activities continue to be vibrant and active. By September 30, 2024, 95% of individual customer transactions were conducted on digital platforms. Digital channels also contributed to 77% of the number of new customers. The number of transactions and deposit balances on digital channels grew exponentially. At the same time, digitalization of customer journeys, operating processes, big data analysis, application of robots and AI to customer service was promoted, helping to improve productivity and optimize costs. As a result, the cost/operating income ratio decreased to 34.3%, lower than the same period.
Implement 30% dividend payment, proactively implement social responsibility
Continuing the tradition of paying regular dividends every year, in the third quarter, HDBank implemented the 2023 dividend payment with a total rate of 30%, of which the cash dividend of 10% was paid in July. The bank is urgently completing the procedures to pay a stock dividend of 20%.
In parallel with business activities, HDBank proactively implements social responsibility with activities to support customers to recover production and business after storm No. 3 through a preferential credit package of VND 12,000 billion. The bank also supports people to rebuild after natural disasters in the northern provinces and cities. Recently, HDBank and its member units also contributed VND 80 billion to the program to eliminate temporary and dilapidated houses nationwide launched by the Prime Minister.
HDBank's sustainable development strategy has been highly appreciated with prestigious awards. The Ho Chi Minh City Stock Exchange (HoSE) recently continued to select HDBank for the Vietnam Sustainability Index (VNSI) for the 5th consecutive year. VNSI includes 20 listed companies with the highest sustainability scores selected from the 100 largest listed companies and is comprehensively evaluated on 3 aspects of ESG. At The Asian Banker Vietnam Excellence Awards, HDBank received the award for "Best Green Credit Financing Bank".
With positive results after 9 months, HDBank is once again in the leading group of the banking industry, with the capacity to maintain high and continuous growth, ready to complete the plan of the Shareholders' Meeting.
