Hdbank

HDBank will choose a life insurance partner for an exclusive bancassurance deal

At the bank’s general shareholders meeting in April, HDBank’s vice chairwoman Nguyen Thi Phuong Thao said that the bank has received a lot of attention recently for an exclusive bancassurance agreement.

“Many international life insurance companies have offered to cooperate with HDBank, but the negotiation has not been completed due to the pandemic,” said Thao. “However, we are not under any pressure to sign an exclusive bancassurance deal at the moment because the contract value in 2021 or next year would be significant.”

Last year, some major lenders have entered the bancassurance competition by co-operating with life insurers. For instance, ACB inked a monopoly deal with Sun Life and VietinBank teamed up with Manulife.

Despite the adverse impacts of the pandemic, the bank reported its pre-tax revenue of VND5.818 trillion($252.96 million) last year, equivalent to an increase of 15.9 per cent on-year.

In the first quarter of this year, HDBank recorded VND2.1 trillion ($91.3 million), up more than 68 per cent on-year.

The bank is accelerating its digitally-led services with its “Di HDBank” application. Moreover, a majority of the bank’s customers have conducted online transactions on the HDBank digital banking platform via its Electronic Know Your Customer (eKYC) implementation.

Pham Quoc Thanh, general director of HDBank, said that since the last quarter of 2020, the bank has reinforced insurance cross-selling initiatives, with many positive performances in return. The bank sets a target this year to collect VND1 trillion ($43.5 million) of insurance service fees.

“Revenue from insurance services is an attractive promise for us in order to diversify our sources of income while reducing reliance on revenue from lending activities,” added Thanh.

By Lam Tien

HDBank announced the distribution of dividend and bonus shares to increase its charter capital

Information published by the Ho Chi Minh City Stock Exchange shows that the Board of Directors of HDBank has approved the plan to increase charter capital in 2021 in line with the proposal submitted at the bank’s annual shareholders’ general meeting.

The bank will increase its charter capital by VND3.98 trillion ($173 million) by issuing more than 398 million dividend-paying shares in 2020 at a rate of 25 per cent. The capital source for issuance from undistributed profits has been fully audited and set aside for funds as prescribed.

In addition, HDBank will issue 20 million shares to employees under an employee stock ownership plan (ESOP) at the price of VND10,000 (43.5 US cents) apiece.

Once the above issuance plans are completed, HDBank’s charter capital will increase from VND16.08trillion ($699.13 million) to VND20.27 trillion.

Closing the session on June 3, the price of HDB shares reached VND35,800 ($1.56) with an active net buying from foreign investors.

In the first quarter, HDBank posted a pre-tax profit of over VND2.1 trillion ($91.3 million), an increase of 68 per cent on-year thanks to income from services. Return on Equity (ROE) and Return on Assets (ROA) were at 26.3 and 2.1 per cent, a sharp increase against the corresponding period last year. The capital adequacy ratio reached over 12 per cent according to Basel II standards while individual bad debts ratio was below 1.1 per cent.

HDBank has been assessed to have high growth potential in bancassurance, consumer finance, credit cards, as well as other product and service lines. HDBank is one of the few banks that has yet to sign an exclusive cooperation agreement in the life insurance business and as such is being courted by several major partners.

International credit rating agency Moody’s Investors Service (Moody’s) recently upgraded HDBank’s outlook from “stable” to “positive”. Moody’s assessed that HDBank’s Base Credit Rating (BCA) may be adjusted and upgraded in the next 12-18 months thanks to its constant improvements in asset quality and profitability.

Moody’s recently upgraded HDBank’s outlook to “positive” over constant improvements in asset quality

By Thanh Van

An HDBank transaction office in HCM City. — Photo courtesy of the bank

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) has announced plans to increase its charter capital to more than VND20.273 trillion (US$879.48 million) by paying dividends for 2020 in shares and an employee stock option plan.

According to information published by the Ho Chi Minh Stock Exchange on June 4, the HDBank board of directors approved the plan to hike the charter capital in 2021 as approved at the bank’s annual general meeting in April.

The bank will increase its charter capital by VND3.984 trillion ($172.83 million) by issuing more than 398 million shares as dividends for 2020 at a rate of 25 per cent from undistributed profits.

The lender will also issue 20 million shares to employees (ESOP).

The HDB share closed on June 3 at VND35,800 with a lot of foreign buying.

In the first quarter HDBank reported a pre-tax profit of more than VND 2.1 trillion ($91.1 million), an increase of 68 per cent year-on-year, with income from services up sharply.

Its return on equity and return on assets increased strongly to 26.3 per cent and 2.1 per cent, its capital adequacy ratio (based on Basel II standards) was over 12 per cent while its standalone bad debts ratio was only 1.1 per cent.

This bank is considered to have high growth potential, with great potential in bancassurance, consumer finance, credit cards and services. HDBank is one of the few banks that not to have signed an exclusive distribution agreement with any life insurance company, and is currently the focus of intense attention of many major players.

International credit rating agency Moody’s Investors Service (Moody’s) recently upgraded HDBank’s outlook from “stable” to “positive.” The positive outlook reflects Moody’s view that improvements in asset quality over recent years, which could translate into lower credit costs and higher profitability, could raise the banks’ Baseline Credit Assessments (BCAs) over the next 12 — 18 months. — VNS

An HDBank representative sends a donation to the Viet Nam’s national vaccine fund. — VNS Photo

Account number 686868 at the Ho Chi Minh City Housing Development Commercial Joint Stock Bank (HDBank) is among those designated to receive donations for the national COVID-19 vaccine fund, the lender said.

It has already received the green light from the State Treasury and Ministry of Finance, and is ready to accept donations from Vietnamese and foreign individuals and organisations, it said.

The account name in Vietnamese is Quy Vac-xin phong chong Covid-19, and it accepts donations in dong, euro and US dollar.

The name in English is the Fund for vacination Prevention of Coronavirus Disease 2019.

The beneficiary bank is HOCHIMINH City Development Joint Stock Commercial Bank.

Its Swift code is HDBCVNVX.

The fund was set up earlier this month with the aim of mobilising resources for the purchase and import of vaccines and research, development and production of vaccines indigenously.

By 8pm on June 5 the fund, approved by the Government on May 26, had received donations of VND1.036 trillion (US$45 million).— VNS

HDBank’s office during transaction hours. — Photo courtesy of HDBank

On June 9, HDBank cooperated with German development finance institution DEG to open the German Desk in Viet Nam.

While this is the seventh service location of DEG in the world, it is HDBank’s third specialised service for foreign companies.

Previously, HDBank successfully launched its Japanese Desk and Chinese\Taiwanese Desk.

The seventh German Desk, which is located at HDBank’s headquarters in HCM City, is expected to be a connection to boost economy and trade development between German/European businesses and Vietnamese counterparts.

HDBank is DEG’s financial institution partner in Viet Nam, providing commercial bank solutions for German companies here, as well as Vietnamese firms exporting goods to the German market and other European countries.

Through the German Desk, DEG will provide supportive packages and financial solutions for companies borrowing capital for extending businesses, training human resource, and reducing production waste.

Along with the German Desk, enterprises from both countries can benefit from the close relationship between HDBank and DEG.

Last September, HDBank issued DEG’s convertible bonds with a value of US$30 million. The success in long-term fundraising from big financial institutes in the world has strengthened HDBank’s position in the international market. — VNS