HDB is the bank share with the largest proportion in the portfolioIn March, PYN Elite Fund made many major changes in its portfolio, including banking stock restructuring activities. Shares of VietinBank (HoSE: CTG) were reduced from 10.11% to 8.9% and fell to 6th place. Meanwhile, other bank stocks were increased in proportion. Most notably, shares of HDBank (HoSE: HDB) were strongly increased by the Finnish investment fund from 8.76% to 9.4%. The total value of PYN’s portfolio as at 31/3 reached more than 631 million euros (equivalent to more than 17,420 billion dong). Thus, the value of PYN Elite Fund’s investment in HDB by the end of March reached more than 59.3 million EUR (more than 1,630 billion VND), an increase of nearly 4.4 million EUR in the past month. This restructuring activity put HDB’s shares in the top 3 largest investments in the Finnish fund portfolio and is the largest invested bank share.
Changes in the proportion of the 4 largest bank shares of the PYN Elite Fund portfolio.
“HDBank is run by Madam Thao – the richest woman in Vietnam, the founder of the airline Vietjet. This is a high quality bank with a prudent risk management policy but with low valuation. The biggest challenge is keeping high growth rate and managing customer risk at a consumer finance company ”, PYN Elite introduces private banking.
This fund expects HDB market capitalization to reach 3 billion EUR, equivalent to a 98% return. PYN believes that the P / B valuation (market price on book value) of the bank could rise to 2.5x.
High business efficiency with large room for development
In 2020, HDBank recorded a pre-tax profit of 5,818 billion dong, up 16%. Return on equity (ROE) and return on assets (ROA) reached 20.6% and 1.7%, respectively. The bank also completed its plan to increase its charter capital from 9,810 billion to more than 16,088 billion through dividends and bonus shares with a total rate of 65%.
NPL ratio / loans to customers (individual) reached 0.93%, belonging to the group of banks with the lowest bad debt ratio. All VAMC bonds have been settled ahead of schedule. Capital adequacy ratio CAR (according to Basel II) reaches 12.1%.
Contributing to the above positive growth, in addition to service credit, the service segment has flourished when interest from services in 2020 will increase by a half compared to 2019. Payment services, budget and Many other services have recorded growth.
The above results show that HDBank products and services are being well received by customers, helping HDBank diversify income sources.
By 2021, HDBank recorded positive results in the first quarter of the year with the consolidated pre-tax profit estimated to exceed VND 2,000 billion, an increase of 68% compared to the first quarter of 2020. ROE is over 26%, higher than 19% of the same period last year. Outstanding loans in the first quarter continued to increase by over 5% to about VND 198,000 billion at the end of March.
According to analysis from VNDirect Securities, HDBank is one of the three banks that will benefit the most from Circular 03 on debt structure, debt rescheduling, and regulations on restructuring provision for credit institutions.
In addition, HDBank is one of the few banks that have not signed an exclusive cooperation agreement on life insurance business, so the room to develop bancassurance, credit cards and other service products remains large during the year. 2021 and the following years.
Source: ndh.vn – Translated by fintel.vn