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HDBank has been approved by shareholders to accept the mandatory transfer of another commercial bank and contribute capital to buy a securities company.
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| View of HDBank's 2023 General Meeting of Shareholders |
On April 26, Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) held the 2023 Annual General Meeting of Shareholders (AGM).
At the meeting, the General Meeting of Shareholders also approved HDBank's participation in the credit institution restructuring program, in which HDBank's Board of Directors was assigned and authorized to carry out and complete the work related to the mandatory transfer of a joint stock commercial bank, in accordance with legal regulations. In addition, HDBank will also participate in contributing capital and purchasing shares of a company in the securities sector so that the company becomes a subsidiary of HDBank.
Although HDBank has not yet disclosed the name of the bank that HDBank participates in restructuring, the compulsory transferred commercial bank will operate in the form of a single-member limited liability bank with HDBank owning 100% of the charter capital, being an independent legal entity and not performing consolidated financial statements.
Regarding the purchase of a securities company, HDBank's Board of Directors said that the securities and investment banking sectors are identified as one of the key areas for future development. Therefore, investing in a securities company can help HDBank expand and exploit its existing customer base more effectively.
In addition, banks also have the opportunity to cross-sell products, provide collection and payment services, etc., thereby increasing revenue and profit for the bank. Accordingly, companies in the securities sector that HDBank participates in contributing capital and purchasing shares must meet the following conditions: being licensed to conduct securities brokerage, securities trading and securities investment consulting; the company's charter capital is over VND 1,000 billion; and having profits for the last 3 consecutive years.
Responding to questions from shareholders regarding two "hot" areas: real estate and corporate bonds (TPDN), Mr. Pham Quoc Thanh, General Director of HDBank, said that HDBank's current real estate business financing ratio is about 7.9% of the total loan portfolio - the lowest in the industry. In particular, the bank focuses on low-middle segment projects and social housing. To date, HDBank has financed 3-4 social housing projects. This shows that HDBank's "taste" is relatively cautious.
Regarding the corporate bond segment, by the end of 2022, HDBank held about VND4,300 billion of corporate bonds, equivalent to 1.6% of total outstanding debt, which is also a low level in the industry. All corporate bonds are being paid principal and interest on time by bondholders, and have provided adequate collateral. Of this, corporate bonds issued by construction enterprises are about VND2,000 billion, VND1,000 billion issued by real estate enterprises, and the rest by tourism, automobile manufacturing and mechanical enterprises.
“Currently, corporate bond investments at HDBank are in accordance with internal regulations and current laws with strict monitoring and inspection mechanisms, ensuring the ability of the issuing organization to pay principal and interest. Therefore, HDBank has not yet recorded any potential risks for these corporate bond investments,” Mr. Thanh replied.
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