Vietnam’s HDBank registers $232.4m in profits for first semester

It also finished adopting Basel III standards.

Ho Chi Minh City Development Joint Stock Commercial Bank, or HDBank, said it registered $232.4m in pre-tax profits during the first six months of 2023.

The year-to-end June also penciled total assets of $20.4b, a 26% year-on-year (YoY) growth.

Funding accumulated $18.17b or 17.4% up from the previous year. Meanwhile, customer deposits also reached $13.08b, jumping 44% YoY.

The bank also shared an estimated 70% YoY climb in its customer presence on digital platforms.

Digital transformation has boosted productivity and optimised the cost-to-income ratio (CIR) to an impressive 34.77%, down from last year's 36.98%, making it one of the market's lowest CIR banks, HDBank said.

Additionally, the Return on Equity (ROE) surpassed 22%, further establishing its position as one of the system's most profitable banks.

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During the initial half of 2023, adhering to the State Bank's directive to lower lending rates and restructure repayment schedules for customers experiencing financial challenges in their recovery efforts, HDBank decreased interest rates for customers holding outstanding loan balances exceeding $2.7b.

Full adoption of Basel III

HDBank began implementing Basel III standards in 2019, and by June 2023, it had successfully adopted the most stringent international risk management norms in Vietnam.

Furthermore, as of 30 June, HDBank's prudential metrics notably surpass the regulatory benchmarks set by the State Bank of Vietnam.

Specifically, the bank's Loan-to-Deposit Ratio (LDR) was maintained at 70.96%, well below the stipulated limit of 85%.

The Capital Adequacy Ratio (CAR) achieved 12.3%, ranking within the top tier of the market and exceeding the minimum requirement of 8% by over 50%.

The proportion of short-term funds used for medium and long-term loans stood at 11.2%, merely a third of the current 34% ceiling ratio.