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Moody’s maintains the B1 credit rating for HDBank

Moody’s maintains the B1 credit rating for HDBank

Thursday 07, 05 2020
Moody’s has maintained the B1 credit rating for HDBank despite many challenges due to the impact of the COVID-19 pandemic in the peak of the epidemic period which separates the whole society.

The credit rating remains unchanged

According to a press release from the rating agency Moody’s (Moody's Investors Service), HDBank maintained its credit rating at B1. According to Moody’s, HDBank operates effectively, has good profitability as well as improved capital capacity, a good portfolio of liquid assets, and solid progress in risk management.

Moody’s is one of the leading international credit rating agencies. Moody's credit rankings and ratings are always important measures that international investors rely on to review the financial capacity and health, as well as the credit of the units that are rated and surveyed.

On Moody's credit rating scale (MIS), HDBank's credit rating stays at B1, reflecting the good financial capacity, low financial risks, and the long-term development opportunities of the bank.

How HDBank is doing

Moody’s maintains the B1 credit rating for HDBank

HDBank has just released its annual 2019 financial report with the theme "Happy Digital Bank". Accordingly, as of December 31, 2019, HDBank had total consolidated assets of 229,477 billion VND, with an owner's equity of 20,381 billion VND.

The profit before tax reached 5,018 billion VND, which is the highest ever. The return on average assets (ROAA) and the return on average equity (ROAE) are 1.8% and 21.6%, respectively. The non-performing loan ratio of HDBank continued to be strictly controlled at less than 0.98%, which is one of the lowest non-performing loans in the industry for many years.

2019 is also a year of HDBank when it is approved by the State Bank of Vietnam to apply Basel II standards with CAR of Basel II reaching 11.2%, higher than the minimum of 8.0% according to regulations. In the first three months of 2020, between the COVID-19 pandemic and major changes in the domestic and global markets, HDBank still achieved positive business results.

Responding to the COVID-19 epidemic, contributing to supporting the economy and working side by side with customers in challenging circumstances, HDBank has implemented credit packages for many customers such as a package of 10,000 billion VND for the program of stabilizing consumer goods and necessities with flexible interest rates of only 6.5%/year for enterprises supplying goods and services for the supermarket chains, a package of 5,000 billion VND to support customers to supplement working capital and pay salaries for employees; a preferential interest rate package from 2 – 4.5% for individual customers and micro-businesses affected by COvid-19 epidemic nationwide; a package of 3,000 billion VND financing businesses operating in the field of supply of pharmaceuticals, equipment and medical supplies; and a package of 1,000 billion VND for the rural agriculture chain to ensure production and supply of rice to the country, and at the same time to help businesses and business households facing difficulties due to saline intrusion in the Mekong Delta, etc.

​>> Moody’s: asset quality of Vietnamese banks deteriorated


Banking & Finance

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