Private lender HDBank reports strong profit growth in 9 months

Ho Chi Minh City-based private creditor HDBank's pre-tax profit surged 47% year-on-year to VND12.65 trillion ($499.6 million) in the first nine months of this year.

After nine months, the bank had completed nearly 80% of the year's target, according to its newly released financial statement for Q3.

In Q3, HDBank reported net interest income of VND7.77 trillion ($306.72 million), marking a significant 58% growth compared to the same period last year.

Its net income from service activities rose by VND94 billion to VND412 billion ($16.3 million), while earnings from trading securities surged to nearly VND142 billion, up 4.7 times from a year earlier.

After deducting expenses, HDBank's pre-tax profit in the quarter hit VND4.49 trillion ($177.24 million), up 42.6% year-on-year.

The bank attributed its robust performance to a strong growth in total operational income and effective cost management. It aims for a pre-tax profit of VND15.85 trillion ($625.7 million) in 2024.

At the end of September 2024, HDBank's total assets stood at VND629.57 trillion ($24.85 billion), a 4.5% increase from the end of 2023. The bank’s outstanding loans grew by 16% to VND393.74 trillion ($15.54 billion), primarily driven by corporate lending.

Notably, the bank recorded significant transactions involving affiliated companies, with total deposits of VND138.64 trillion ($5.47 billion) and withdrawals of VND136.7 trillion during the nine-month period. HDBank also reported receivables of VND3 trillion from one of its affiliates.

HDBank's non-performing loan (NPL) ratio stood at 1.89% at the end of Q3, with potentially irrecoverable loans (debt group 5) expanding 39% to VND2.3 trillion ($90.8 million). Meanwhile, deposits rose nearly 7% from the start of the year to VND397 trillion ($15.7 billion).

At the end of October, the bank’s board of directors approved a plan for public offering of 100 million non-convertible, unsecured bonds with a maximum face value of VND10 trillion ($394.75 million).

The issuance, set for Q1 to Q3 of 2025, is designed to enhance the bank's tier-2 capital, improve regulatory safety ratios, and support lending needs.

On the stock market, HDB closed Tuesday at VND27,300 ($1.1) per share.