Fitch Assigns First-Time 'BB-' Rating to HDBank, Recognising Strong Financial Profile

Fitch Ratings has assigned its first-ever credit ratings to Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank), granting the lender long-term foreign- and local-currency issuer default ratings (IDRs) of 'BB-' with a stable outlook and a Viability Rating of 'bb-', the highest Viability Rating for Vietnamese banks. The rating is one notch above the B1 rating previously assigned by Moody's, underscoring HDBank's progress in strengthening its financial position and credit quality.

Fitch stated that the ratings reflect HDBank's strong profitability, stable funding base, and growing position in Vietnam's banking sector. The agency highlighted the bank's sustained growth in total assets and lending, along with its expanding market share in retail banking and small and medium-sized enterprise segments. Fitch expects HDBank to maintain profitability above the sector average, supported by healthy net interest margins, strong operating efficiency, and one of the strongest capital positions among Vietnamese banks. The bank's shareholder-approved capital raising plans are expected to further strengthen its capital buffers and support medium- and long-term growth.

The newly assigned credit rating is anticipated to improve HDBank's access to global capital markets, diversify funding sources, and lower funding costs. Earlier this year, Moody's upgraded HDBank's outlook from "Stable" to "Positive," citing improvements in financial strength, asset quality, and growth prospects.

In the first quarter of 2026, HDBank reported pre-tax profit of VND6.107 trillion (US$232.1 million), up 14% year-on-year. Its return on equity (ROE) remained among the highest in the banking sector at 24.29%, while its Basel II capital adequacy ratio stood at 16.2%, more than double the regulatory minimum of 8%. As of March 31, total assets topped VND984.2 trillion (US$37.5 billion), up 5.7% from the end of 2025. The bank maintained a loan-to-deposit ratio below 70%, while other key liquidity indicators, including the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR), all exceeded Basel III minimum requirements.

The rating action by Fitch Ratings is a significant milestone for HDBank, as it provides global investors with a benchmark to assess the bank's creditworthiness. With a stable outlook, the rating signals that HDBank is well-positioned to navigate Vietnam's favourable economic environment while continuing to strengthen its financial profile. The bank's strong capitalisation and profitability metrics are expected to support its growth strategy and further enhance its competitive position in the Vietnamese banking sector.