BizLIVE - Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – ticker symbol: HDB) announced that its estimate of pre-tax profit in the first quarter of 2021 exceeded VND 2,000 billion, an increase of more than 67% compared to the first quarter of 2020.
HDBank Estimated First Quarter Profit over VND 2,000 billion, up 67%, Income from Services Doubled
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Income from services doubled that of the same period for 3 consecutive quarters, showing great potential.

HDBank achieved positive business results right in the first quarter of 2021. Specifically, consolidated pre-tax profit reached more than VND 2,000 billion, an increase of 67.8% compared to the first quarter of 2020, of which standalone profit was more than 1,810 billion, nearly 2 times the VND 964 billion level in the first quarter of 2020.

Return on equity (ROE) was over 26%, higher than the 19.2% level in the same period last year. Return on assets (ROA) also increased sharply, reaching over 2% compared to 1.7% in the first quarter of 2020.

As at 31/3/2021, outstanding loans were around 198 trillion VND, up 5.2% compared to 31/12/2020. The Bank continues to develop traditional customer segments, with high return and well-controlled risks, such as agricultural loans, business households and individuals, small and medium enterprises in the supply chain. Asset quality is well controlled among the best in the industry. Capital adequacy ratio CAR (Basel II) reached 12%.

Accompanying with customers to achieve the dual goal of fighting the pandemic while developing the economy, HDBank continues to deploy programs with low interest rate from only 3% per annum to support individuals and micro enterprises with the lowest interest rate from only 3% / year. The bank also waives many types of transaction fees to support customers.

In parallel with high credit growth, banking services also made a major breakthrough. Net service income in the first quarter of 2021 was nearly 2 times higher than that in the first quarter of 2020. This is the third consecutive quarter that the net service income has attained an impressive growth rate, validating the huge room for development of HDBank’s service segment.

HDBank is one of the few banks that have not signed an exclusive bancassurance cooperation agreement, so the room to develop bancassurance, credit cards and other service products remains large in 2021 and the coming years.