HO CHI MINH CITY, VIETNAM - Media OutReach - 3 August 2023 - Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank - HOSE: HDB) has announced its first half results with pre-tax profits of nearly VND 232.4 million, which extended its growth track record in the 10th consecutive year.

"Overcoming many unprecedented challenges in the first half of this year, the operating results of HDBank in the first six months of 2023 once again confirm that the strategy and goals set by the Board of Directors are on the right track. HDBank remains steadfast in its sustainable development strategy, focusing on retail and digitalization, enhancing customer experience and values, with a focus on agriculture and rural areas, serving individual customers, households, SMEs, and value chains," said Mr. Kim Byoungho, Chairman of HDBank's Board of Directors.

ROE and many financial indicators are at the market-leading levels

According to the financial statement, as of June 30, 2023, HDBank's total assets reached USD 20.4 billion, up 26% year-over-year (YoY).

Total funding reached USD 18.17 billion, up 17.4% year-to-date (YTD), with customer deposits reaching USD 13.08 billion, up 44%.

Total credit balance exceeded USD 12.36 billion, up 9.3% YTD.

These indicators reflect the bank's solid growth momentum, primarily driven by its strategic focus on agriculture, rural areas, SMEs, small household businesses, and supply chains, in line with the "Sustainable Development – Pioneering Spirit" strategy embraced at its Annual General Meeting.

HDBank's digital transformation efforts are bearing fruit, with the number of customers using digital channels in the first six months of 2023 increasing by nearly 70% YoY.

The number of transactions on digital platforms increased by 116% YoY, corresponding to a 132% increase in transaction value.

Digital transformation has also improved productivity, cost-to-income ratio (CIR) was optimized to 34.77%, from last year's 36.98%, which is among the banks with lowest CIR in the market.

The Return on Equity (ROE) exceeded 22%, which further solidified its position among the most profitable banks in the system.

In the first half of 2023, in line with the State Bank's guideline for reducing lending rates and restructuring repayment schedule for those customers facing with difficulties to support their recovery, HDBank reduced lending interest rates for its customers whose total outstanding loan balance was over USD 2.7 billion.

The Bank's subsidiary - HD SAISON also promotes the disbursement of a preferential loan package of VND 10 trillion for factory workers and laborers.

Fully implemented Basel III standards, room for growth remains ample

Basel III standards were first studied for implementation since 2019, by June 2023, HDBank has completed the adoption of the most stringent international risk management standards in Vietnam.

Moreover, HDBank's prudential indicators at June 30, 2023, are significantly ahead of the regulatory requirements of the State Bank of Vietnam.

Specifically, the Loan-to-Deposit Ratio (LDR) of the bank was kept at 70.96%, below the prescribed limit of 85%.

The Capital Adequacy Ratio (CAR) reached 12.3%, belonging to the top group in the market, and over 50% higher than the minimum requirement of 8%.

The ratio of short-term funds used for medium and long-term loans was at 11.2%, only one-third of the current 34% ceiling ratio.

"By maintaining high risk management standards under Basel III, as well as adhering to good operational safety ratios compared to the regulations of the State Bank of Vietnam, HDBank has the necessary capacity to continue pursuing growth values in the future and contribute to promoting strong economic recovery alongside its customers," Mr. Kim Byoungho – Chairman of the Board added.

With a focus on sustainable development, building and spreading human values to the community alongside its business activities, in the first six months of 2023, HDBank actively implemented numerous community and social welfare activities through more than 20 programs nationwide.

HDBank's outstanding efforts and achievements during the first six months of 2023 has been further decorated with prestigious international awards including awards from CitiBank and Wells Fargo for its Excellent International Payment Service, and the recognition for the Best Bank for Sustainable Finance in 2022 from The Asset.