Robust Profit Growth Driven by Solid Fundamentals - HDBank's Q1 2021 Business Results
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
HDBank’s Q1 2021 Business Results Robust Profit Growth Driven by Solid Fundamentals May 2021
2
33
Overview of HDBank
• Established in 1989, HDBank is currently among the largest listed companies by
market capitalization and belongs to VN30 Index of top 30 best stocks.
• HDBank has proven M&A capabilities, successfully completing the acquisition of ~10x VND 187tn VND 219tn
Societe Generale Viet Finance and DaiA Bank in 2013 to become one of the
largest financial institutions in Vietnam
• HDBank has 51% of voting rights in HD Saison, one of the top 3 largest consumer Asset growth since Loan growth: Deposits growth:
finance companies in Vietnam.
2010 22.9% (YOY) 38.8% (YOY)
• As of 31/03/2021, the bank has 308 branches and transaction offices, 19,955 points
of sale, 14,400 employees serving more than 11 million customers.
• Affiliated with Sovico - one of Vietnam’s largest and most reputable conglomerates
• HDBank’s long-term deposit credit rating is affirmed at B1 by Moody’s. 4.53% 26.3% VND 2.1tn
Net interest margin Return on equity Profit Before Tax
(Q1 2021) Growth 67.9% (YOY)
1.1% 1.5% 12.2%
* HDBank is a founding shareholder NPL ratio NPL ratio CAR
(owning 4.95%) and a partner of
(parent bank) (consolidated) (Basel II)
Vietjet Air – the largest domestic
airline by market share. (Q1 2021) (Q1 2021) (Q1 2021)
Source: Company Data 4
Development Timeline
(In VNDBN)
Implement the first 5-year development
Establishment Phase Post IPO Growth
strategy
No. of Branches,
Transaction and
Rep. offices
Source: audited financial statements except 2021 data
Note: In 2013, HDBank acquired 100% equity of Societe Generale Viet Finance Company Limited (SGVF) of the Société Générale Group (Republic of
France) - one of the three largest consumer finance companies in Vietnam, to become a subsidiary of HDBank named HDFinance. In 2013, DaiA Bank had
20 years of banking experience, with a charter capital of VND 3,100 billion. Through the merger with DaiA Bank, HDBank increased its charter capital to
VND 8,100 billion, and became one of the top 10 largest commercial banks in Vietnam. 5
Reputable Brand Name
•
•
•
6
77
Key Investment Highlights
1 Impressive track record of growth and operating efficiency
2 Strategic focus on fast growing retail and SME banking segments
3 Controls a leading consumer finance company
4 Prudent and proven risk management practices
5 Well-established operating base to drive strong and sustainable growth
Reputable, highly experienced, and committed Board of Directors and management
6 team
8
1 Impressive Track Record Of Growth And Operating Efficiency
Loan Book (VNDbn) Customer Deposits and Valuable Papers (VNDbn)
Total Equity (VNDbn) High level of Capital Adequacy
Source: Company data 99
1 Impressive Track Record Of Growth And Operating Efficiency
Increasing Income and Reducing Costs NIM stabilizes with Funding Costs Are Well-Controlled
Significant Improvements in Operating Efficiency and Profitability Sustainable and Growing Profitability Ratios
Source: Company data
10
102 Strategic Focus on the Fast-Growing SME and Retail Banking Segments
Loan Portfolio Breakdown (March 2021) Retail Customers and Deposits Growth
CIB, CF,
3.3% 7.9% •
CMB/SME, •
Retail, 50.4%
38.3%
Customer Deposit Breakdown (March 2021) CMB/SME Customers and Deposits Growth
•
CIB,
19.7%
•
Retail,
51.6% CMB/SME,
28.6% •
Source: Company data 11
112 Strategic Focus on the Fast-Growing SME and Retail Banking Segments
Source: Company data 12
123 Controls a Leading Consumer Finance Company
HD Saison’s Total Assets (VNDtn) Targeted Customer Segments
>10x
Benefiting from International Partnership
•
•
•
Source: Company data 13
133 Controls a Leading Consumer Finance Company
Motorbike Loan Market Share (March 2020) Net Interest Margin Credit Cost (TTM)
Loan Mix (March 2021) Total Loan (VNDbn) Profit Before Tax (VNDbn)
Source: Company data 14
143 Controls a Leading Consumer Finance Company
Profitability Cost to Income Ratio
NIM and Funding Cost NPL Ratio
Source: Company data 15
154 Prudent and Proven Risk Management Practices
Historical NPL Ratio vs. Industry Average Credit Cost (*)
NPL Coverage ratio (*) NPL Formation Rate (*)
Source: Company data
16
165 Well-Established Operating Base to Drive Strong and Sustainable Growth
Source: Company data
17
176 Reputable and Highly Experienced Board of Directors (HDBank)
● ● ●
● ●
● ●
● ●
● ●
●
● ● ●
● ●
● ●
● ● ●
● ●
●
●
● ●
Source: Company data 18
186 Reputable and Highly Experienced Board of Directors (HD Saison)
● ●
●
●
●
●
●
Source: Company data 19
1920 20
Key Strategic Initiatives
Focus on Digitalization within HDB while integrating with the Group Ecosystem
Digital Transformation
Appointed BCG to advise on HDB digitalization 2021 strategy is to enhance sales aiming at VND 1Tn
strategy and execution over the next 3 years FYP for life insurance products.
Optimize and re-invent customer journeys to Non-life insurance partnership with HD Insurance
serve existing target customer segments,
deepening the relationship To continue the negotiation of a new exclusive
bancassurance agreement
Omni Channel with Data analytics and AI are key
focus
Ecosystem
The Group digital ecosystem leveraged on existing Continue to develop and enhance ESG program
businesses and partner networks to be a modern followed international standards
lifestyle platform that address most frequent lifestyle
needs. Increase reporting and governance standards
Capture future trends of new Vietnamese
generations: (i) Experience more (ii) Simplicity &
Personalization and (iii) Digital connection
21Digital Banking Development
Redesign digital banking infrastructure to create fully digitalized end-to-end banking processes
3 Levels of Digitization Planned
Automation: Taking separate components of existing
1
processes and automate them using digital tools
HAPPY DIGITAL BANK
Redesign: Taking holistic view and optimizing e2e
2 processes with digital technologies
Digitalized E2E Processes Digital Innovations
Reimagine: Radically changing how processes work
3
thanks to comprehensive digital enablement
Customer Journeys New proposition development
Operations and support Immediate Focus: Improving Customer Journey
Data analytics
function
Governance and ways of working
Focus on the Covers end-to- Utilize multiple Improves with
actual journey end view and channels and is cutting-edge
Technology and architecture the customer informs all not constrained technology, and
goes on, not a internal / back- by mechanics of is not bound by
pre-determined end processes internal legacy
process to support processes infrastructure
Source: Company data 22
22Digital Banking Development
Expanding beyond core banking activities
• •
• •
• •
• •
• •
•
•
Source: Company data 23
23
23Digital Banking Development
To become a technologically advanced financial center that provides a broad range of financial services digitally
Super App
Tablet App Mobile App
• •
• •
•
•
•
•
•
Source: Company data 24
24
2425 25
ESG Risk Management Strategy and Sustainable Development
HDBank has been incorporated development goals with sustainable values, fulfil its social responsibility and
raise awareness on environmental protection
Environmental
The Bank’s Actions
• Pioneering the implementation of “Green credit” to support renewable energy
projects, reducing carbon emission via green credit programs for commercial
and retail solar power projects nation-wide.
• Declining credit applications from customers and projects not meeting
regulated environmental standards.
• Proactively raising awareness among employees, launching internal contest
to implement “Green ideas” in the workplace
Impact
1,680 MWp – Honored with >VND 10tn credit
Total power capacity “Green Deal programs to
of commercial and Award 2019” – by support clean and
roof-top solar power Asian high-tech
projects financed by Development agriculture
HDBank Bank (ADB)
Source: Company dataESG Risk Management Strategy and Sustainable Development
HDBank has incorporated its development goals with sustainable values, fulfilment of its social responsibility
and environmental protection
Social
• Positioning human as the crucial factor in development strategy, thus, regularly launching training
courses and establishing a clear career pathways in line with equal and transparent treatment for
every employee.
• Proactively fulfilling social responsibility through community support and development; flourishing
virtuous values.
• Developing products and services meeting customers’ demand and continuously improving
customers’ experiences.
Awarded “Best Company to Supporting customers and 2020 Best Domestic Retail
work for in Asia” by HR communities to overcome Bank award
Asia in 2018, 2019 and 2020 Covid-19 pandemic and
natural disasters
Governance
• Implementing best-practice standards in corporate governance in operational activities to ensure its
compliance with the best governance practices.
• Committed to delivering the highest value to shareholders and all stakeholders of the Bank.
• Continuously improving its CSR Risk Management, including generating guidance and allocating
specialized executive.
Implemented all 3 Pillars of Achieved AGM business 65% - the highest 2020
Basel II on the banking targets over many dividend ratio among
management system consecutive years banking sector
Source: Company data 27Highlights of Key Corporate Events And CSR Activities
HDBank 2021 Virtual Annual General Meeting successfully hosted Madame Nguyen Thi Phuong Thao was honored with the French
Legion of Honour
On April 23rd 2021, HDBank’s 2021 Annual General Meeting (AGM) convenved On April 4th 2021, the Ambassador of France to Vietnam presented the Legion of
online successfully concluded. Honour by the French Government to the Chairwoman of the Sovico Group,
Permanent Vice Chairwoman of HDBank and CEO of Vietjet - Madame Nguyen Thi
At the AGM, HDBank re-affirmed its determination to implement digital Phuong Thao.
transformation in the year 2021, automating key processes to enhance customer The noble order is the international recognition of Madame Thao’s special
experiences, reduce operational costs and further strengthen the Bank’s contributions and achievements in economic and social development, who has
competitiveness. transformed the aviation industry, enhancing the national development and concreting
the ties between Vietnam and foreign countries, including the long lasting cooperation
HDBank also prioritizes the expansion of financial services segment, in particular with France.
the bancassurance business, credit card and other services. A number of life- Madame Nguyen Thi Phuong Thao is the first self-made female billionaire in
insurance partners are seeking for exclusive banca agreement with the Bank. Southeast Asia, also the first Vietnamese businesswoman to have received this noble
The AGM also approved the 2020 Profit Distribution Plan and the raising of honor. She has made significant contributions to promote economic and investment
Charter capital by distributing 2020 earnings by shares. The dividend payout partnership, highlighted by impressive achievement in strategic partnership and
ratio will be 25%. economic cooperation between Vietnam and France.
Source: Company data 28
28Highlights of Key Corporate Events And CSR Activities
HDBank increased working capital and expanded credit packages to
support customers in overcoming the Covid19 Pandemic HDBank signed strategic MoUs with universities
In March 2021, HDBank successfully signed a syndicated loan agreement with Mega With the goal of highlighting the strategic
International Commercial Bank from Taiwan for US$ 71 million (about VND 1,700 partnership, capturing the mutual potential in
billion). This loan is a good supplement to HDBank’s operating capital to serve the operation and and bringing development
needs of the economy and to optimize operational efficiency, which is in line with opportunities to the talented yourth, HDBank
HDBank's new business strategy in a operating environment. has signed comprehensive partnership with the
04 leading universities in Ho Chi Minh City,
With the target customers of SMEs and FDI enterprises, including Taiwanese namely, University of Economics Ho Chi Minh
enterprises, HDBank has piqued interest of Mega Bank, who acted as the arranger City, University of Economics and Law,
and invited other 7 leading Taiwanese banks to join together with State Bank of India University of Foreign Languages – Information
in this syndicated finance. Technology and Ton Duc Thang University.
HDBank has been continuously named among the best growth HDBank continues to support the community to overcome Covid-19
corporates in Vietnam pandemic
In April 2021, HDBank was named in the Top 50 Responding to the Government’s call for
Vietnam Best Growth Awards, ranked by support to Covid-19 patients, on March 1st
VietnamReport. The Ranking was conducted by 2021, at the the Central Committee the
independent research and evaluation processes Vietnam Fatherland Front in Hanoi, Mr. Pham
to honor the leading corporates with best Quoc Thanh – HDBank Chief Executive Officer
business performance, fastest and stable growth presented VND 1.5 billion to Hai Duong
in the Vietnam’s economy. Over the past years, Province. Additionally, HDBank also
HDBank has been continuously named among contributed billions of VND to support patients
the leading corporates of the Ranking. and students in needs.
Source: Company data 29
2930 30
Distribution Network
HDBank and HD Saison are forming the largest retail banking and consumer finance distribution networks in Vietnam
● ●
● ●
● ●
●
● ●
● ●
●
● ●
● ●
●
●
Typical Design of A Transaction Center
Thank you Contact details: Mr. Tung Hoang – Head of IR Dept. Ms. My Tran – Senior IR Officer IR@hdbank.com.vn +8428 6291 5669 (Ext 7370)
You can also read
