Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - TheHo Chi Minh City Development Joint Stock Commercial Bank (HOSE: HDB) plans topay a dividend of 65 percent for 2019, 50 percent in stocks and 15 percent inbonus shares.
The lender announced this atits annual general meeting in HCM City on June 13.
The charter capital of HDBank,as it is known, will increase from the current 9.8 trillion VND to nearly 16trillion VND after the dividend payment.
The bank aims to increase itscharter capital to meet the State Bank of Vietnam’s requirements to improve itsfinancial capacity to develop its client network, expand market share andbusiness scale, diversify banking services, and improve risk managementcapability.
The bank also aims tosupplement its medium- and long-term capital, enhance its infrastructure, andbuild a headquarter with a modern information technology system.
This year HDBank expects itstotal assets to increase by 33 percent to 305 trillion VND, deposits to 275trillion VND, up 35 percent, and loansoutstanding to 178 trillion VND. It targets an increase of 13 percent inpre-tax profit.
Return on assets and return onequity will remain at high levels of 1.69 percent and 20.02 percent.
To achieve the targets, thisyear, besides credit growth and expansion of its network, HDBank will alsofocus on increasing income from services and cross-selling products andoffering new products and services to customers.
According to Le Thi Bang Tam, itschairwoman, 2020 is a key year in the bank’s five-year (2017-2021) developmentplan.
“HDBank identified 2020 as theyear to accelerate digital transformation, enhance technology application onthe big data platform and digitise processes, distribution channels, productsand services, and its entire activity.
“This is a decisive innovationstep in the context that the world is struggling to contain the COVID-19pandemic, restore business activities and normalise social life.”
At the meeting the board of directorsalso submitted a plan to issue up to 1 billion USD worth of bonds in theinternational market in tranches.
The bond will have a minimumterm of three years and a maximum of 10 and be issued to investors outside theUS and listed on the Singapore Stock Exchange.
The bank also plans to issue 500million USD worth of convertible bonds in the international or Vietnamesemarket with a term of five years in 2020 or 2021.
With its current scale, it isimperative for HDBank to participate in the international bond market, NguyenThi Phuong Thao, the bank’s vice chairwoman, said.
“Currently, due to theinfluence of the COVID-19 pandemic, the governments of many countries haveinjected a lot of money into the international market at astonishingly lowinterest rates, even 0 percent. So we believe that this is an opportunity tomobilise capital for the bank's recovery plans and investment projects.”
Thao also revealed plans toconvert HDBank’s consumer finance arm HDSAISON from a limited company to ajoint stock company and launch an initial public offering.
At the meeting, the board ofdirectors announced the dismissal of supervisory board member Nguyen Thi Phung,and her replacement by Duong Thi Thu.
It was also announced that thesupervisory board for the 2017-2022 term would have a minimum of three membersinstead of the previous four.
In the first quarter of thisyear HDBank’s total consolidated operating income increased by 27.8 percentyear-on-year to 3.15 trillion VND. Pre-tax profit rose by 13.5 percent to 1.25trillion VND.
The non-performing loans ratioof the parent bank continued to be closely controlled, with its 0.98 percentrate placing it among the banks with the lowest ratios in the industry.
To mitigate COVID-19 risks,HDBank has adopted measures to ensure safe operations. Besides, it has rolledout credit packages to support SMEs, businesses that produce and distributeessential products and others in supply and distribution chains to help themovercome the tough situation.
In April 2020 Moody’s retainedits B1 credit rating for HDBank though it had said earlier many banks werelikely to have their ratings lowered.
It underlined HDBank’s stablefinancial capacity, low risk and long-term development opportunities.
Also in the first quarterHDBank was honoured as the best domestic bank in Vietnam by The Asset,Asia’s leading banking and finance magazine./.
The lender announced this atits annual general meeting in HCM City on June 13.
The charter capital of HDBank,as it is known, will increase from the current 9.8 trillion VND to nearly 16trillion VND after the dividend payment.
The bank aims to increase itscharter capital to meet the State Bank of Vietnam’s requirements to improve itsfinancial capacity to develop its client network, expand market share andbusiness scale, diversify banking services, and improve risk managementcapability.
The bank also aims tosupplement its medium- and long-term capital, enhance its infrastructure, andbuild a headquarter with a modern information technology system.
This year HDBank expects itstotal assets to increase by 33 percent to 305 trillion VND, deposits to 275trillion VND, up 35 percent, and loansoutstanding to 178 trillion VND. It targets an increase of 13 percent inpre-tax profit.
Return on assets and return onequity will remain at high levels of 1.69 percent and 20.02 percent.
To achieve the targets, thisyear, besides credit growth and expansion of its network, HDBank will alsofocus on increasing income from services and cross-selling products andoffering new products and services to customers.
According to Le Thi Bang Tam, itschairwoman, 2020 is a key year in the bank’s five-year (2017-2021) developmentplan.
“HDBank identified 2020 as theyear to accelerate digital transformation, enhance technology application onthe big data platform and digitise processes, distribution channels, productsand services, and its entire activity.
“This is a decisive innovationstep in the context that the world is struggling to contain the COVID-19pandemic, restore business activities and normalise social life.”
At the meeting the board of directorsalso submitted a plan to issue up to 1 billion USD worth of bonds in theinternational market in tranches.
The bond will have a minimumterm of three years and a maximum of 10 and be issued to investors outside theUS and listed on the Singapore Stock Exchange.
The bank also plans to issue 500million USD worth of convertible bonds in the international or Vietnamesemarket with a term of five years in 2020 or 2021.
With its current scale, it isimperative for HDBank to participate in the international bond market, NguyenThi Phuong Thao, the bank’s vice chairwoman, said.
“Currently, due to theinfluence of the COVID-19 pandemic, the governments of many countries haveinjected a lot of money into the international market at astonishingly lowinterest rates, even 0 percent. So we believe that this is an opportunity tomobilise capital for the bank's recovery plans and investment projects.”
Thao also revealed plans toconvert HDBank’s consumer finance arm HDSAISON from a limited company to ajoint stock company and launch an initial public offering.
At the meeting, the board ofdirectors announced the dismissal of supervisory board member Nguyen Thi Phung,and her replacement by Duong Thi Thu.
It was also announced that thesupervisory board for the 2017-2022 term would have a minimum of three membersinstead of the previous four.
In the first quarter of thisyear HDBank’s total consolidated operating income increased by 27.8 percentyear-on-year to 3.15 trillion VND. Pre-tax profit rose by 13.5 percent to 1.25trillion VND.
The non-performing loans ratioof the parent bank continued to be closely controlled, with its 0.98 percentrate placing it among the banks with the lowest ratios in the industry.
To mitigate COVID-19 risks,HDBank has adopted measures to ensure safe operations. Besides, it has rolledout credit packages to support SMEs, businesses that produce and distributeessential products and others in supply and distribution chains to help themovercome the tough situation.
In April 2020 Moody’s retainedits B1 credit rating for HDBank though it had said earlier many banks werelikely to have their ratings lowered.
It underlined HDBank’s stablefinancial capacity, low risk and long-term development opportunities.
Also in the first quarterHDBank was honoured as the best domestic bank in Vietnam by The Asset,Asia’s leading banking and finance magazine./.
VNA
