HCMCity (VNS/VNA) - The Ho Chi Minh City Development Joint StockCommercial Bank (HDBank, HOSE: HDB) reported pre-tax profits of 3.61 trillion VND(155.5 million USD) for the first nine months of 2020, a year-on-yearincrease of 31.9 percent and equivalent to 107 percent of the target.

Non-interestincome grew by 158 percent in the third quarter as the bank launched a numberof programmes to help customers and others cope with the COVID-19 pandemic.

Thetotal operating income of the parent bank for the quarter was 2.31 trillion VND(99.65 million USD), up 21.4 percent, with net interest income increasing by25.6 percent and fees from services by 158 percent.

Profitbefore tax was 1.25 trillion VND (540.8 million USD), up 24.9 percent andconsolidated pre-tax profit was worth 1.47 trillion VND (63.5 million USD), up19.1 percent year-on-year.

Theparent bank's profits for the first nine months rose 31.9 percent to 3.61trillion VND (155.5 million USD), with net interest income and service feeincome increasing by 31.1 percent and 71.9 percent.

Consolidatedprofits were up 27.1 percent to 4.38 trillion VND (188.46 million USD),equivalent to 103 percent of its target.

Returnon equity (ROE) and return on assets (ROA) were 21.1 percent and 1.9 percent.

Theindicators of financial health were excellent. The capital adequacy ratio (CAR)was 10.9 percent as against a minimum of 8 percent prescribed under Basel IInorms.

Theratio of short-term capital to medium- and long-term loans was only 23.7 percentagainst a permitted cap of 40 percent.

Creditrating agency Moody's recently ranked HDBank B1 even as the national creditrating was included in the monitoring category for a possible downgrade.

Asof September 30 this year the bank’s total consolidated assets topped 273trillion VND (11.76 billion USD), an increase of 19.1 percent compared to thebeginning of the year and an increase of 25.8 percent from 12 months earlier.

Outstandingcredit was at 175 trillion VND (7.5 billion USD), an increase of 14.1 percentover the year, 19.2 percent higher than a year earlier and twice the bankingindustry’s average.

Theabove results were possible thanks to the bank enhancing credit programmes tosupport customers, embracing digitisation to improve efficiency and reducecosts and lowering lending interest rates while ensuring reasonable net profitmargins.

Its‘green credit’ programmes to promote high-tech agriculture, renewable energy,small and medium-sized enterprises, essential goods supply chains, andproduction and business households are welcomed by customers.

Alongwith outstanding loan portfolio growth, effective risk management has helpedHDBank control asset quality with its bad debts ratio (separately) of 1.39 percentbeing lower than the industry average.

HDBankhas redeemed all its VAMC (Vietnam Asset Management Company) bonds earlier thanplanned. It has also actively increased provisioning and is ready to deal withany risks that arise.

Atthe same time it has rolled out many services that are basedon advanced technologies to offer customers more benefits on its mobilebanking and internet banking platforms and to digitise its internal andtransactions processes to become a paperless and digital bank.

Itis the pioneer in implementing online customer identity verification (eKYC) andoffering international payment solutions and trade finance on the blockchainplatform using technology 4.0.

In2020, the bank won a number of prestigious honours from internationalorganisations such as the ‘Best Innovation in Green Banking’ and ‘MostInnovative Mobile Banking App’ awards from Global Business Outlook magazine, aplace in Forbes magazine’s top 50 listed Vietnamese companies list and the‘Mid-sized domestic retail bank’ prize from Asian Banking & Finance.

Thisis a pivotal year for HDBank in implementing its five-year development plan for2016-2021. The bank has always been consistent in its strategies of sustainabledevelopment, high growth, ensuring a return on equity of over 20 percent, anddeveloping digital banking.

Theoperating results that exceed the targets for the first nine months of 2020will serve as a basis for the bank to achieve the targets for the whole year.

Recentlyit paid its first dividend for 2019 and issued bonus shares at a total rate of30 percent.

Itis expected to pay a second dividend in the fourth quarter./.