HDBank to pay 25% dividend in cash and stocks, aim for high growth in 2024

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HCM CITY, VIETNAM – Media OutReach Newswire – 8 April 2024 – The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank, stock code: HDB) will pay a dividend of 25%, 10% in cash and 15% in stocks, for 2023, according to documents to be tabled at its 2024 annual general meeting released on April 4.

HDBank will pay a dividend of 25%, 10% in cash and 15% in stocks, for 2023. — Photo courtesy of HDBank
HDBank will pay a dividend of 25%, 10% in cash and 15% in stocks, for 2023. — Photo courtesy of HDBank

This year the bank targets 22% growth in profits to VND15.85 trillion (US$634.13 million) and dividend payment of up to 30% (with a maximum of 15% in cash).

According to the documents, the annual general meeting (AGM) will be held online on April 26.

HDBank will submit reports to shareholders for approval, including its business performance in 2023, business plans for 2024, profit distribution plans for 2023, and other key reports.

Eyeing VND16 trillion profits in 2024, ROE at 24.6%

HDBank, which has gone through a 10-year journey of reform, maintained its high and steady growth in 2023.

Its profitability ratios, ROA was 2% and ROE was and 24.2% last year, keeping it among the group of leading banks.

In 2024 the bank remains on track for high growth while developing a comprehensive environmental, social and governance (ESG) strategy.

It targets pre-tax profits of VND15.85 trillion, an increase of 21.8% from 2023, ROE of 24.6% and maintaining its non-performing loans ratio at among the lowest levels in the industry.

Total assets are set to exceed VND700 trillion ($28 billion) this year, an increase of 16% from 2023.

Total fundings are expected to reach VND624 trillion ($25 billion), up 16%.

Loans outstanding are projected to cross VND438 trillion ($17.5 billion) in line with the credit growth target allocated by the State Bank of Vietnam.

Up to 30% dividends in cash, stocks

HDBank will table at the AGM its dividend distribution plans for 2023 at the rate of 25%, 10% in cash and 15% in stocks.

Notably, it plans to pay 30% in cash and stocks for 2024.

HDBank has consistently paid high dividends for over a decade when it achieved rapid and steady growth.

This year the bank plans to increase its charter capital by over VND4.56 trillion ($182.88 million) to VND33.65 trillion ($1.34 billion) from the current VND29.1 trillion ($1.16 billion) by issuing shares to pay dividends, further consolidating its financial health indicators, which are already among the best in the industry, and solidifying the strategic foundation for its sustainable development in future.

HDBank remains steadfast about achieving sustainable development, comprehensive digital transformation and green growth.

It has steadily improved its management capacity and adopted advanced international management standards such as Basel III.

HDBank is a pioneer in embracing a comprehensive ESG strategy, publishing an ESG report and proactively implementing corporate social responsibility, while enhancing digital banking development plans towards modern retail banking.

The bank’s better than expected results in 2023 mean good news for shareholders at the AGM on April 26.

The bank is confident to accomplish the targets for 2024 (stated in the AGM documents) when the economy remains uncertain.

Nearly 20,000 shareholders of the bank are preparing for the AGM in an optimistic mood about HDBank’s governance and capacity to achieve the 2024 plans.

Hashtag: #HDBank

The issuer is solely responsible for the content of this announcement.

About HDBank

stands as one of Vietnam’s prominent financial institutions, deeply committed to promoting ESG, sustainable development, innovation, and development.

The bank’s mission is to offer financial solutions that enable both individuals and businesses to thrive and prosper.