08:29 (GMT +7) - Wednesday 22/08/2018

Banking & Finance

HDBank lists on HoSE

Released at: 18:06, 05/01/2018

HDBank lists on HoSE

Photo: HDBank

Bank debuts on Ho Chi Minh Stock Exchange on January 5.

by Hong Nhung

The Ho Chi Minh City Development Bank (HDBank) (Stock code HDB), joined the Ho Chi Minh Stock Exchange (HoSE) on January 5, listing more than 980 million shares and becoming the first bank to go public in 2018.

With charter capital of more than VND9.8 trillion ($432 million) and with a reference price of VND33,000 ($1.46) per share on the first trading day, HDBank has a market capitalization of around VND32.4 trillion ($1.43 billion), making it one of the 20 largest companies by market capitalization on HoSE.

Banking shares are attracting cash flows from foreign investors, with several offers worth hundreds of millions of dollars. HDBank raised about $300 million last month from more than 76 foreign investors at its initial public offering (IPO), selling around 21.5 per cent of its shares at VND32,000 ($1.41) based on the book building method.

The remaining 8.5 per cent of the bank’s shares are attractive in the context of other listed banks having no further room for foreign investors.

The bank’s listing on HoSE will raise market liquidity and provide potential opportunities to both local and foreign investors. “We have prepared all the foundations for the 2017-2021 plan, with average annual growth of 25 per cent and profit growth of 37 per cent each year, and serving 15 million customers by 2021,” Vice Chairman Nguyen Thi Phuong Thao told the listing ceremony. “In the past ten years, the bank’s total assets have increased 18 times and we believe it will more than double by 2021.”

HDBank follows VIB, Kienlongbank, VPBank, and LienVietPostBank in listing on the local stock exchange.

The bank recently announced it doubled its consolidated pre-tax profit in 2017 against 2016. It has been focusing on individuals and small and medium-sized enterprises to help grow its profits by an average of 35 per cent a year in the last five years.

The bank’s consolidated pre-tax profit rose 2.1 times year-on-year in 2017 to VND2.42 trillion ($106.24 million). Total consolidated assets stood at VND191 trillion ($8.4 billion) by the end of the year, with total mobilized capital of VND168.8 trillion ($7.4 billion) and total customer loans of VND111.9 trillion ($4.9 billion).

The bank posted a relatively low bad debt ratio of 1.1 per cent as at the end of 2017, which may rise to 1.5 per cent if non-performing loans (NPLs) at its retail financial company HD Saison were taken into account. HDBank currently enjoys a return-on-assets (ROA) of 14 per cent and a return-on-equity (ROE) of 15.6 per cent.

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