The Ho Chi Minh City Development Joint Stock Commercial Bank (HOSE: HDB) has reported impressive results for the fourth quarter of 2019, with after-tax profit increasing by 40.1 percent year-on-year to US$67.7 million.
It took the full-year profit figure to $216.3 million, an increase of 25.3 percent.
Pre-tax profit was V$173.3 million, an increase of 25.6 percent.
The non-performing loan ratio was a low 0.98 percent, something that HDBank has controlled well over the years.
Several performance indicators in the fourth quarter showed strong breakthroughs. For instance, net interest income was up 33.6 percent compared to the same period of 2018 to $125.03 million.
Net income from services increased by 65.2 percent, helping increase the total operating income to $144.01 million, up 25.8 percent.
Operating costs and provisions for bad debts were well controlled.
The net profit margin (NIM) went up sharply from 4.2 percent at the end of 2018 to 4.8 percent by the end of last year, one of the highest rates in the industry.
Earnings from services during the year increased by 36 percent.
The strong growth in these main sources of income helped increase operating income by 20.6 percent in the whole year.
Provisions for bad debts were low thanks to the bank’s high asset quality.
The cost to income ratio continued to climb, rising from 44.6 percent to 47 percent the previous year.
The excellent performance once again places HDBank among the top banks in terms of profitability. Its return on average assets (ROAA) was over 1.8 percent and return on average equity (ROAE) was 21.6 percent.
As of December 31, it has total consolidated assets of $9.89 billion, a year-on-year increase of 21.1 percent, and equity of $878.8 million.
Last year, HDBank continued to focus on lending to priority areas such as high-tech agriculture, renewable energy, production and trading, and small- and medium-sized enterprises.
The consumer finance segment, one of its three growth drivers along with retail and SME, saw outstanding loans rise by over 18 percent.
Besides its excellent business performance, HDBank also pioneered the application of the best international standards of governance, including Basel II standards.
Last year, it received the green light from the State Bank of Vietnam to adopt Basel II standards ahead of schedule, and its CAR has reached 11.25 percent, much higher than the minimum of 8 percent required.
This year, HDBank will continue to take the lead in technology, digital transformation, fintech and digital banking based on international safety and security standards to bring customers a satisfying and trustworthy experience.