HDBank AGM: Accelerate digital transformation, target high growth, have responsibility towards customers, economy

HO CHI MINH CITY, VIETNAM – Media OutReach – 26 April 2021 – Shareholders of the Ho Chi Minh City Development Joint Stock
Commercial Bank (HoSE: HDB) approved all the statements and proposals by
the board of directors at its annual general meeting of shareholders on April
23.

HDBank achieved its best
results ever in 2020.

Total consolidated assets
increased by 39.1 per cent to VND319.127 trillion (US$13.8 billion).

Deposits and loans
outstanding at the end of the year reached VND 208.953 trillion ($9.04 billion)
and VND 188.228 trillion ($8.14 billion), up 38.4 per cent and 23 per cent for
the year.

Return on equity and return
on assets were 20.6 per cent and 1.7 per cent.

The bank also increased the
charter capital from VNĐ9.810 trillion to over VNĐ16.088 trillion by issuing
dividends and bonus shares to the tune of 65 per cent, the highest rate in the
industry.

Pre-tax profit was VND 5.818
trillion, up 15.9 percent and equivalent to 102.8 percent of the target.

The bank’s non-performing
loans ratio was just 0.93 per cent, among the lowest in the industry.

HDBank was one of the first
lenders in Vietnam to complete all three Basel II risk management pillars ahead
of the central bank’s schedule.

Credit rating agency Moody’s
recently confirmed HDBank’s B1, or “stable” ratings outlook.

The year also witnessed
strong digital transformation by the lender, which has created a solid
foundation for achieving its goal of becoming Vietnam’s leading digital bank.

The AGM also approved the
business plan for 2021 with the key targets being total assets rising to
VNĐ399.320 trillion, an increase of 25 per cent from last year, and deposits
and loans outstanding growing by 25 per cent and 26 per cent to VNĐ359.851
trillion and VNĐ236.768 trillion.

The pre-tax profit target is
VND7.281 trillion, a 25 per cent increase.

Profitability ratios like
return on assets and return on equity will continue to be high at 1.62 per cent
and 21.1 per cent.

This year the bank will
continue to speed up digital transformation, automate key processes to improve
the customer experience, reduce operating costs, and improve its
competitiveness.

HDBank will prioritise
development of the services segment, where it still has a lot of room to grow
bancassurance and many international life insurance companies are keen to sign
exclusive agreements with it.