Vietnamese bank HDBank records Q1 profit of $205.8 million; introduces financial group model in Vietnam
HDBank's Q1 2025 Financial Performance
It's clear that Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) is off to a strong start in 2025. The bank revealed its first-quarter financials recently, showcasing a robust performance and cementing its place as one of Vietnam's most efficient financial institutions.
In Q1, HDBank unveiled its new strategy, a modern, universal, and sustainable financial banking group model, designed to drive growth from 2025 to 2030.
The bank reported a substantial 33% increase in profits before tax for the quarter at VNĐ5.35 trillion (US$205.8 million), compared to the same period last year. Return on equity (ROE) remained high at 29.62%, further solidifying HDBank's competitive edge within the sector.
HDBank's consolidated total operating income clocked in at VNĐ9.2 trillion ($353.9 million), indicating steady growth fueled by the bank's core operations and its digital business successes.
By March 31, 2025, the bank's total assets grew by 18% to reach VNĐ711.3 trillion ($27.36 billion). Deposits surged by 22.8% to reach VNĐ465.3 trillion, demonstrating strong customer confidence in HDBank's operations. The bank's total outstanding loans also increased by 19.9%, with strategic investments in key economic sectors such as agriculture, SMEs, supply chain finance, tier 2 cities, and rural agricultural areas.
HDBank's capital adequacy ratio (CAR) according to Basel II standards was impressively over 14.9%, placing it among the highest in the sector.
To further enhance sustainability, HDBank has been focusing on integrating financial technology within its business framework, diversifying its income structure towards non-interest income.
Digitalization: The Driving Force for the Future
HDBank reported profits before tax of VNĐ5.35 trillion (US$205.8 million) in the first quarter. - Photo courtesy of HDBank
HDBank's digital business operations experienced significant growth during the first quarter, with a 38% increase in individual customers and a 55% YoY increase in financial transactions conducted via digital platforms. The bank is accelerating digitalization to optimize operations, reduce its cost-to-income ratio (CIR), and enhance the customer experience.
In addition, HDBank's subsidiary HD SAISON Finance Company continued to thrive, reporting profits before tax of VNĐ306 billion in the first quarter, marking an 18.4% YoY increase and the company's most successful Q1 in recent years.
Q1 also saw the successful acquisition and restructuring of DongA Bank, resulting in the official transformation of Vikki Digital Bank, a next-generation digital bank tailored to highly digitalized customers. Vikki Digital Bank holds a strategic position within the modern and universal financial banking model, encompassing commercial banking, consumer finance, investment banking, insurance, fund management, and digital platforms.
With positive growth results and a commitment to sustainable development, HDBank continues to be recognized and appreciated by renowned organizations. The Asian Banker recently honored HDBank as the "Best Financial Service Provider for SMEs," while the 2025 Sao Khue Awards highlighted HDBank's technological advancements with pioneering digital solutions such as eCASH cash collection service and smart medical kiosks.
While we don't have specific details on HDBank's strategic plans for the 2025-2030 period beyond the aforementioned modern, universal, and sustainable financial banking group model, some possible goals might include:
- Financial diversification by offering new services like financial consulting, insurance, and investment banking.
- Digital transformation through the development and integration of digital payment systems and mobile banking solutions.
- Emphasis on sustainable growth by incorporating green financing and supporting environmentally-friendly projects.
- Asset quality management to ensure sound financial health.
HDBank's digital business operations sustained robust growth in Q1. - Photo courtesy of HDBank
Key sectors for HDBank's growth strategy might include retail banking, corporate banking, and digital financial services.
- HDBank's strategic move to integrate finance, business, and technology within its modern, universal, and sustainable financial banking group model, aims to accelerate growth from 2025 to 2030.
- The bank's AI-driven digital platforms facilitate a 38% increase in individual customers and a 55% YoY increase in financial transactions, optimization of operations, and an improved customer experience.
- HDBank sustained robust growth in its digital business operations, driving a reduction in the cost-to-income ratio (CIR).
- With the successful acquisition and restructuring of DongA Bank, Vikki Digital Bank, a next-generation digital bank, was established, strategically positioned within HDBank's financial banking model.
- In Q1, HDBank's subsidiary, HD SAISON Finance Company, reported profits before tax of VNĐ306 billion, marking its most successful Q1 in recent years.
- Recognized for its SME financial services, HDBank was awarded "Best Financial Service Provider for SMEs" by The Asian Banker, while its technological advancements were appreciated during the 2025 Sao Khue Awards.
- Potential goals for HDBank's 2025-2030 period include financial diversification, digital transformation, emphasis on sustainable growth, and asset quality management to ensure sound financial health.
