HDBank remains on high growth path in Q3, aids business community amid pandemic

- 30 October, 2020 - The
HCM City Development Joint Stock Commercial Bank (HDBank, HOSE: HDB) reported
pre-tax profits (separately) of VND3.615 trillion
(US$155.5 million) for the first nine months of the year, a year-on-year increase of 31.9 per cent and equivalent
to 107 per cent of the target.

Non-interest income grew by 158 per cent in
the third quarter as the Bank launched a number of programmes to help customers
and others cope with the COVID-19 pandemic.

The total operating income of the parent bank
for the quarter was VND2.317 trillion ($99.65 million), up 21.4 per cent, with
net interest income increasing by 25.6 per cent and fees from services
by 158 per cent.

Profit before tax was VND1.255 trillion ($540.8
million), up 24.9 per cent and consolidated pre-tax profit was worth VND1.474
trillion ($63.5 million), up 19.1 per cent year-on-year.

The parent bank's profits for the first nine
months rose 31.9 per cent to VND3.615 trillion ($155.5 million), with net
interest income and service fee income increasing by 31.1 per cent and 71.9 per

Consolidated profits were up 27.1 per cent to
VND4.381 trillion ($188.46 million), equivalent to 103 per cent of its target.

Return on equity (ROE) and return on assets
(ROA) were 21.1 per cent and 1.9 per cent.

The indicators of financial health were
excellent. The capital adequacy ratio
(CAR) was 10.9 per cent as against a minimum of 8 per cent prescribed under
Basel II norms.

The ratio of short-term capital to medium-
and long-term loans was only 23.7 per cent against a permitted cap of 40 per

Credit rating agency Moody's recently ranked
HDBank B1 even as the national credit rating was included in the monitoring
category for a possible downgrade.

As of September 30 this year the Bank's total
consolidated assets topped VND273 trillion ($11.76billion), an increase of 19.1
per cent compared to the beginning of the year and an increase of 25.8 per cent
from 12 months earlier.

Outstanding credit was at VND175 trillion
($7.5 billion), an increase of 14.1 per cent over the year, 19.2 per cent
higher than a year earlier and twice the banking industry's average.

above results were possible thanks to the Bank enhancing credit programmes to
support customers, embracing digitisation to improve efficiency and reduce
costs and lowering lending interest rates while ensuring reasonable net profit

'green credit' programmes to promote high-tech agriculture, renewable energy,
small and medium-sized enterprises, essential goods supply chains, and
production and business households are welcomed by customers.

with outstanding loan portfolio growth, effective risk management has helped
HDBank control asset quality with its bad debts ratio (separately) of 1.39 per
cent being lower than the industry average.

has redeemed all its VAMC (Vi?t Nam Asset Management Company) bonds earlier
than planned. The Bank has also actively increased provisioning and is ready to
deal with any risks that arise.

the same time the Bank has rolled out�many
services that are based on�advanced technologies to
offer customers more benefits on its mobile banking and internet banking
platforms and to digitise its internal and transactions processes to become a
paperless and digital bank.

is the pioneer in implementing online customer identity verification (eKYC) and offering international
payment solutions and trade finance on the blockchain platform using technology

2020 the Bank won a number of prestigious honours from international
organisations such as the 'Best Innovation in Green Banking' and 'Most
Innovative Mobile Banking App' awards from Global Business Outlook magazine, a
place in Forbes
magazine's top 50 listed Vietnamese companies list and the "Mid-sized
Domestic Retail Bank�of the Year" from Asian Banking & Finance.

is a pivotal year for HDBank in implementing its five-year development plan for
2016-21. The Bank has always
been consistent in its strategies of sustainable development, high growth,
ensuring a return on equity of over 20 per cent, and developing digital

operating results that exceed the targets for the first nine months of 2020
will serve as a basis for the bank to achieve the targets for the whole year.

HDBank paid its first dividend for 2019
and issued bonus shares at a total rate of 30 per cent.

The Bank is
pay a second dividend in the fourth quarter.

About HDBank

Ho Chi Minh City Development JSC Bank (HDBank, HOSE:HDB) was
established in 1990, making it�among the first commercial banks�in Vietnam.

After 30 years of operations, HDBank is now one of the leading
banks in Vietnam.�It�has
strong finances�and modern technology,�and�provides�a wide
range of financial services�to�individuals, corporates and investors.

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