On April 26, Ho Chi Minh City Development Joint Stock Commercial Bank - HDBank (HDB) held the 2023 Annual General Meeting of Shareholders (AGM).
Responding to shareholders about the basis on which the bank's board of directors set a high growth target in 2023, with profits increasing by 29% (compared to the high base in 2022) to nearly VND 13,200 billion, Ms. Nguyen Thi Phuong Thao, Vice Chairwoman of HDBank's Board of Directors, said that the bank has maintained a high and stable growth rate over the past 10 years. Most indicators have increased well. Therefore, the 2023 plan is highly feasible.
Regarding stock prices, Ms. Thao said that as long-term investors, there is no exact answer to whether to buy now or not. The answer should be left to the consulting units.
According to the female billionaire, in fact, recently, the board of directors and employees of HDBank who have saved money have all bought HDB shares, as a tradition.
In addition, HDBank has a tradition of paying regular and high dividends to shareholders. This year, the bank will pay 25% in cash and dividends (cash at a rate of 10% and in shares at a rate of 15%).
She explained that in principle, banks can pay 100% cash dividends, but it must follow market developments as well as the State Bank's policy for commercial banks.
In the past, the State Bank directed credit institutions not to pay cash dividends. This year, the State Bank has allowed banks with good financial indicators to pay cash dividends. HDBank is one of the banks implementing that policy.
Regarding the possibility of increasing the foreign room to 49%, Ms. Thao said that the Government and the State Bank of Vietnam have approved regulations, creating conditions for organizations to participate in restructuring weak credit institutions. Therefore, participating organizations all have the opportunity to increase the room to 49%. Currently, HDBank's project is in the information exchange and confidentiality phase, so it cannot be announced yet. When permission is granted, the bank will inform shareholders.
Regarding bad debt, General Director Pham Quoc Thanh said that HDBank's bad debt reserve ratio is 70 - 75% and when conditions permit, the bank will increase the bad debt reserve ratio.
Meanwhile, Ms. Nguyen Thi Phuong Thao affirmed that HDBank's risk appetite is quite "conservative", all loans have high collateral, so compared to the whole industry, the bad debt coverage ratio is good. The bad debt ratio at HDBank has been at around 1% for many years.
Receive transfer of a bank, buy a securities company
There are two contents that investors are also interested in: the plan to receive the transfer of a bank and contribute capital and buy shares of a securities company (CTCK).
According to HDBank, the securities and investment banking sectors are one of the key areas for future development. Investing in securities companies can help HDBank expand and exploit its existing customer base more effectively. In addition, the bank also has the opportunity to cross-sell products, provide collection and payment services, etc., thereby increasing revenue and profit for the bank.
Regarding the criteria for securities companies that HDBank aims for, they are: Licensed to conduct securities brokerage, securities trading and securities investment consulting; have a charter capital of over VND 1,000 billion; and have profits for the last 3 consecutive years.
The bank will also participate in the credit institution restructuring program. A name that can be mentioned as early as 2023.
Previously, last year, HDBank's shareholders' meeting gave written opinions, approving the policy of participating in the restructuring of a credit institution in the form of compulsory transfer of a joint stock commercial bank under special control.
Mr. Pham Quoc Thanh, General Director of HDBank, admitted that the targets set by the Board of Directors and the Executive Board for 2023 are not easy, but very challenging in the current market context. However, the target is still set and strives to be achieved. Looking back at the past, for example, in 2022, the growth rate was still 24-25%, showing that the bank has a solid foundation to continue growing.
According to Mr. Thanh, in the first quarter of 2023, HDBank's credit growth will be the highest in the industry, up to 10%. This year, there is a plan to participate in restructuring the credit institution system, so there will be more room for high credit growth.
Results in 2022 and plans for 2023
HDBank announced its 2023 business plan, with a pre-tax profit target of VND13,197 billion, up 29% compared to 2022. Total assets are expected to increase from VND416.3 trillion to over VND520 trillion, equivalent to an increase of 25%. Outstanding credit is expected to increase by 24%, reaching VND333.5 trillion. Bad debt is controlled below 2%.
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