$227 mln HDBank H1 profit driven by bancassurance, cashless payments

HDBank, one of the first Vietnamese joint stock banks, reported a pre-tax profit of VND5,304 billion ($227 million) in the first six months of 2022, up 26.5% year-over-year and fulfilling 54% of the year's profit plan.

Its total operating income reached $458 million in the period, up 27.1%, with net interest income and non-interest income rising by 25.8% and 32.6%, respectively.

Especially, bancassurance and cashless payment services achieved robust growth with net fee income doubling that of the same period last year, according to its financial report.

In the second quarter, the bank's total operating income and pre-tax profit reached $238.8 million and $118.8 million, up 31.2% and 32.6% year-on-year respectively.

As of June 30, 2022, total deposits reached $14.55 billion. Consolidated credit balance reached over $10.48 billion, up 14.8% against the end of last year.

HDBank's operating expenses in the first half increased by only 19.4% over the same period last year thanks to cost-effeciency management while applying digital technology to increase labor productivity and manage risks.

The ratio of operating cost to total operating income rose to 37% from 39.4% a year earlier. The return on average equity and return on average assets ratios were 25.6% and 2.24% respectively, both higher than those of last year.

Prudential ratios were at healthy levels with capital adequacy ratio, under Basel II, reaching 14.9%, a market-leading figure. Parent bank’s non-performing loan (NPL) ratio was 0.93% while the ratio of provisions to debt reached the "highly safe" level of 109%.

HDBank is implementing a plan to increase capital from VND20,273 billion to VND25,303 billion ($1.08 billion) through issuing more than 503 million shares to pay dividends in 2021, with a distribution ratio of 25%.

The reinvestment of accumulated profits for business activities leands HDBank more resources to fuel high growth plans and increased profits according to the strategy approved by shareholders, the bank said.