{"id":21003,"date":"2019-04-24T17:38:49","date_gmt":"2019-04-24T10:38:49","guid":{"rendered":"https:\/\/yuanta.com.vn\/?post_type=phan-tich&#038;p=21003"},"modified":"2019-04-25T11:28:17","modified_gmt":"2019-04-25T04:28:17","slug":"agm-takeaways-a-step-closer-to-basel-ii","status":"publish","type":"phan-tich","link":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/agm-takeaways-a-step-closer-to-basel-ii","title":{"rendered":"HDB_AGM Takeaways: A step closer to Basel II"},"content":{"rendered":"<p><strong>NOT RATED<\/strong><\/p>\n<p>Current price (24\/04\/2019): VND 28,350<\/p>\n<p><strong>Target Price: N\/A<\/strong><\/p>\n<p><strong>Upside: N\/A<\/strong><\/p>\n<p><strong>Summary: <\/strong>We attended HDB\u2019s AGM on April 23. The key focus of discussion was the bank\u2019s plan to increase its charter capital. HDB\u2019s all-stock dividend is intended to support business network expansion, IT improvements, and medium- to long-term funding. With total CAR reported at 12.1%, HDB believes that Basel II approval from the SBV is imminent in 2Q19.<\/p>\n<p><strong>Company profile: <\/strong>HDB primarily focuses on retail and SME banking. The bank is ranked No.8 by total loans (currently VND122 tn, or 1.6% market share) among non-state commercial banks. HDB has 285 branches and transaction offices and nearly 7 million clients as at 2018. Management expects Basel II implementation to be approved in 2Q19.<\/p>\n<p><strong>Capital retention to fund business expansion<\/strong>. HDB successfully obtained shareholders\u2019 approval at the AGM to boost its charter capital by VND 2.9 trillion. The Bank will accomplish this through a 30% stock dividend, so total capital will remain unchanged.<\/p>\n<p><strong>The move is intended to support HDB\u2019s network expansion<\/strong> from the current 285 branches\/transaction offices to 308 in 2019E, upgrade IT system to adopt Basel II, and provide additional funding for medium-to long term loans. 4Q18 short-term funding to medium- and long-term loans was about 32%, which is already well below the SBV\u2019s cap.<\/p>\n<p><strong>A step closer to Basel II. <\/strong>HDB\u2019s CAR of 12.1% is relatively high vs most of its peers. HDB expects the SBV to approve its Basel II implementation in the current quarter (i.e., 2Q19) given its NPL ratio of just 1.5% (1.92% if VAMC bonds are included in the numerator) and B1 credit rating from Moody\u2019s.<\/p>\n<p>For a complete report, please access here: <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2019\/04\/HDB_AGM-Note_04.19.pdf\">HDB_AGM Note_04.19<\/a><\/p>\n<p>Analyst: <strong>Tanh Tran<\/strong>, <em>tanh.tran@yuanta.com.vn<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>NOT RATED Current price (24\/04\/2019): VND 28,350 Target Price: N\/A Upside: N\/A Summary: We attended HDB\u2019s AGM on April 23. The key focus of discussion was the bank\u2019s plan to increase its charter capital. HDB\u2019s all-stock dividend is intended to support business network expansion, IT improvements, and medium- to long-term funding. With total CAR reported&#8230;<\/p>\n","protected":false},"author":10,"featured_media":0,"template":"","class_list":["post-21003","phan-tich","type-phan-tich","status-publish","hentry","analysis-category-company-update","analysis-category-financials"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.3 (Yoast SEO v23.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>HDB_AGM Takeaways: A step closer to Basel II | Yuanta Vietnam<\/title>\n<meta name=\"description\" content=\"NOT RATED Current price (24\/04\/2019): VND 28,350 Target Price: N\/A Upside: N\/A Summary: We attended HDB\u2019s AGM on April 23. 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