HDBank has announced its Q1/2021 financial report with pre-tax profit of over VND2,100 billion, increasing 68% compared to Q1/2020. 

HDBank's First Quarter Profit Over VND 2,100 Billion as Service Income Increases Significantly

Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – ticker symbol: HDB) has announced its Q1/2021 financial report with pre-tax profit of over VND2,100 billion, increasing 68% compared to Q1/2020. Service income increases more than 98%, demonstrating great room to grow.

In particular, on March 31st 2021, capital mobilization and valuable papers issuance reached VND 219,266 billion, increasing 4.9% compared to 31/12/2020. Outstanding credit balance was at VND 197,970 billion, increasing 5.2% thanks to the growth drivers from all the core businesses including retail, small and medium enterprises (SME) and consumer finance.

Accompanying customers to achieve the dual goals of fighting the pandemic and developing the economy, HDBank has deployed several preferential credit programs for retail and corporate customers with lowest interest rate from only 3% per annum.

Customers also received waiver or reduction of many types of fees such as transactional fees, cash management fees, treasury management fees, and international fund transfer fees.

Together with growth in credit activity, service activities also experienced impressive growth. Net service income in Q1/2021 increased by more than 98% compared to Q1/2020.

This is the third consecutive quarter that net service income has achieved such high growth, showing great potential. The number of customers and volume of ebanking channels also increased quickly, showing customer’s acceptance of HDBank’s electronic products and services.

Additionally, room for bancassurance remains highly potential for HDBank as many international insurance companies are seeking for exclusive partnership. Credit cards and other services also have high growth potential in 2021 in upcoming years.

At the end of the first quarter of 2021, pre-tax profit was over VND2,100 billion, increasing 68% compared to Q1/2020. Especially, pre-tax profit of the parent bank surpassed VND1,800 billion, increasing 88% compared to the same quarter last year.

Return on equity (ROE) and return on asset (ROA) reached 26.3% and 2.1%. Asset quality, capital safety, and liquidity ratios remained at high level. Capital adequacy ratio CAR (Basel II) was above 12%. Ratio of short-term capital to medium and long-term loans was at only 23% compared to maximum regulated level of 40%. Cost management efficiency also enhanced with cost to income ratio (CIR) at 39.1% compared to the Q1/2020 ratio of 51%.

On top of positive business results, from the beginning of the year until now, HDBank has deployed tens of billions of VND to support the community.

Recently, in the scope of “ASEAN Business Forum with EVFTA”, HDBank was one of the 3 banks honored as leading enterprises in Vietnam – ASEAN – EU industries with significant contributions to economic development in the international economic integration.

With positive business results achieved right in the first quarter of the year, HDBank looks forward to a 2021 year of achieving and exceeding business targets.