Moody’s reaffirms B1 credit rating for HDBank despite pandemic challenge

HO CHI MINH CITY, VIETNAM –
Media OutReach
– 22 April 2020 – Moody’s Investors Service has
reaffirmed the B1 credit rating for the Ho Chi
Minh City Development JSC Bank (HDBank) amid a challenging
market situation due to the impact of the Covid-19
pandemic and social distancing orders from the Government.

In its press
release, Moody’s said the bank has good profitability, improving capitalisation
and good portfolio of liquid assets and is making solid progress in risk
management.

In its 2019 financial report released recently,
HDBank had total consolidated assets of nearly VND229.48 trillion (US$9.78
billion), equity of VND20.38 trillion (US$867.8 million) and profit before tax
of nearly VND5.02 trillion (US$213.8 million), its highest ever.

Return on average assets (ROAA) and return on
average equity (ROAE) were 1.8 per cent and 21.6 per cent, respectively.

HDBank’s
non-performing loan ratio continued to be strictly controlled, at less than
0.98 per cent, placing it among the banks with the lowest NPL ratios in the
banking industry, a status it has enjoyed for many years.

Last
year the bank received approval from the State Bank of Vietnam to adopt Basel
II standards ahead of schedule, and its capital
adequacy ratio (CAR) reached 11.2 per cent, much higher than the minimum of 8
per cent prescribed.

In
the first three months of this year, despite the COVID-19 pandemic and the big
changes it wrought in the domestic and global markets, HDBank achieved very positive business results.

In
joining hands to fight the Covid-19 pandemic, HDBank is offering many
preferential programmes for its customers. It has set aside VNĐ10 trillion (US$426 million) to lend to
producers and corporates who supply goods and services to supermarkets at
interest rates starting at 6.5 per cent to stabilise consumer markets, VNĐ5
trillion (US$213 million) for
small and medium-sized enterprises and set aside VNĐ3 trillion (US$127.6 million) for cutting
fees and interest rates to support enterprises that supply drugs and medical
equipment for use during the pandemic.

It is also enhancing technology application
and promoting cashless payment solutions.

About HDBank:

Ho Chi Minh City Development JSC Bank (HDBank, HOSE:HDB) was established in 1990,
making it among the first commercial banks in Vietnam.

After 30 years of
operations, HDBank is now one of the leading banks in Vietnam. It has
strong finances and modern technology, and provides a wide
range of financial services to individuals, corporates and investors.