HDBank: Credit growth is bright spot for banking

However, challenges still abound in promoting credit growth.

The SBV recently issued a document requiring implementation of solutions to achieve a credit growth rate of 5-6 per cent by the end of the second quarter.

Statistics show in the first quarter, seven out of 27 banks recorded negative credit growth, including some large banks.

But there are still many banks with a credit growth rate that is much higher than the industry average, such as LPBank, Techcombank, HDBank and MSB.

These banks are also showing good profits compared to the industry average.

Each bank has different strategies and competitive advantages to exploit market opportunities.

LPBank recorded the strongest credit increase of over 12 per cent, while Techcombank grew by more than 7 per cent and HDBank by 6.2 per cent. MSB's credit growth increased by more than 5.6 per cent.

A HDBank representative stated the bank has implemented early risk management policies to mitigate adverse external impacts and ensure a stable and flexible operational framework.

The bank tops the industry in profitability, with a return on equity (ROE) reaching 26.7 per cent.

Continuous improvements in operational safety ratios also provide shareholders and investors with peace of mind amid numerous challenges.

Meanwhile, promoting digitalisation and optimising processes and operating costs are also key to improving the bank's operational efficiency over the past few years.

At HDBank, high growth targets and industry-leading ROE come with a strong optimisation of the Cost-to-Income Ratio (CIR), from 39.3 per cent in 2022 to only 31.7 per cent in the first quarter of this year.

At other banks such as Techcombank, VPBank or especially at large network-operating banks like VietinBank, the CIR has also shown significant improvements in recent years, approaching around 30 per cent.

Strong digitalisation and optimisation of performance and operational efficiency are also necessary factors for sustainable growth goals among Vietnamese banks.

According to State Bank representatives, credit growth is expected to increase in the last months of the year.

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