Its RoE for the year reached 23%, a level that placed it at the top of the sector. Habubank’s financial structure was significantly strengthened with a risk weighted capital adequacy ratio rising to 14%. The group’s organisational and network structure was also improved, with the focus on distribution channels.
The bank has clearly defined its strategic priorities to invest for the future by strengthening its financial base, integrating its technology in a move towards a common platform and leveraging organisation-wide capabilities across business lines, expanding its distribution network and co-operating with selected strategic partners. One of its strategic partners is Deutsche Bank, which signed an agreement to become Habubank’s foreign strategic partner with the possibility of taking a 20% stake in the Vietnamese bank. Deutsche Bank will share technical support and expertise in treasury and risk management, as well as in other potential business areas.
Habubank’s efforts to become the industry’s most admired employer are reflected in its 96% staff retention ratio, the best in its peer group. This was a major contributor to last year’s spectacular results, with net profits up 276%, a 415% increase in Tier 1 capital and 111% growth in assets. At the same time, the bank improved its cost-income ratio to 28.06% from 33.46%, and brought its NPL ratio down to 0.95% of the loan book, from 1.1% in the previous year.
“We are overwhelmed with happiness and delight as Habubank is crowned Vietnam’s Bank of the Year 2007 for the second consecutive year,” says chief executive Bui Thi Mai. “The renowned award marks international recognition from the world community of Habubank’s incessant endeavours.
“This year is prominent for Habubank because we sustained our growth momentum in all our businesses after an exceptionally successful year in 2006. With our strategic focus on becoming a multifunctional bank specialised in retail banking, Habubank has strengthened its investment in technology and human resources, and has widened its branch network and product range.
“The bank’s success in the year is an efficient contribution to the sound development and upswing of Vietnam’s economy. Habubank has a positive outlook for future growth and confidence to enter the World Trade Organization integration area.”
