HDBank Aims for Robust Growth in 2024: Projecting $625.5 Million Profit and 30% Dividend Payout

HDBank (stock code: HDB) targets an ambitious pre-tax profit of VND15.85 trillion (US$625.5 million) for 2024. This represents a 22% increase year-over-year, as announced at the bank's annual general meeting on Friday, April 26.

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Customers conduct transactions at an HDBank branch in HCM City. Photo courtesy of HDBank.

One of the key factors driving growth is the lender’s focus on maintaining profitability ratios such as ROA and ROE.

In 2024 the bank remains on track for high growth while continuing to improve its comprehensive environmental, social, and governance (ESG) strategy.

The bank is projecting total assets to exceed VND700 trillion (US$27.6 billion) this year, up 16% from 2023.

Total deposits are expected to reach VND624 trillion (US$24.6 billion), up 16%.

Loans outstanding are projected to exceed VND438 trillion (US$17.28 billion) in line with the credit growth quota allocated by the central bank.

This year the bank plans to increase its charter capital by 5% to VND29.1 trillion ($1.15 billion) by issuing shares.

In 2023, it managed to ensure a low bad debts ratio of 1.5% and achieve a capital adequacy ratio (CAR) of 12.6%, among the highest in the industry.

The annual general meeting also agreed to increase the dividend payment rate in 2023 to 30% from 25% with a maximum of 10% in cash, based on the business results it achieved.

In 2023, profit before tax topped VND13 trillion (US$613 million), up 26.8 % from 2022. HDBank achieved an ROA of 2% and an ROE of 24.2%, placing it among the top banks in the industry.

In the first quarter of 2024, HDBank achieved significant pre-tax profits, which topped VND4 trillion (US$157.8 million), a 43.6% jump year-on-year. Its ROE was 26.2%, credit growth was 6.2% and bad debts were controlled at 1.68% in the first quarter. Its CAR based on Basel II standards exceeded 13.7% in the period.

HDBank has consistently delivered for its shareholders, and this year is no exception as it plans to pay a dividend of 30%, with a maximum of 15% in cash and the rest in stocks.

HDBank