HDBank’s 9M2020 Business Results Resilient Growth … SMEs, offering them with more options of financial solutions to expand business activities in 2020 in the context of increased

November 2020

Resilient Growth

Underpinned by

Superior Asset Quality

HDBank’s 9M2020 Business Results

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• Established in 1989, HDBank is currently among the largest listed companies bymarket capitalization and belongs to VN30 Index of top 30 best stocks.

• HDBank has proven M&A capabilities, successfully completing the acquisition ofSociete Generale Viet Finance and DaiA Bank in 2013 to become one of thelargest financial institutions in Vietnam

• HDBank has 51% of voting rights in HD Saison, one of the top 3 largest consumerfinance companies in Vietnam.

• As of 30/9/2020, the bank had 303 branches and transaction offices, 18,819 pointsof sale, 14,170 employees serving over 10 million customers.

• Affiliated with Sovico - one of Vietnam’s largest and most reputable conglomerates

• HDBank’s long-term deposit credit rating is affirmed at B1 by Moody’s

* HDBank is a founding shareholder

(owning 4.95%) and a partner of

Vietjet Air – the largest domestic airline

by market share.

Source: Company Data

Overview of HDBank

>25x

Asset growth since

2008

5.0%

Net interest margin

1.39%

NPL ratio

(parent bank)

VND 164tn

Gross loans

27% CAGR (2015-

2019)

21.1%

Return on equity

(9M 2020)

0.3%

Credit Cost

(parent bank)

VND 198tn

Total deposits

16% CAGR (2015-

2019)

55%

2015-2019 EPS

CAGR

10.9%

CAR

(Basel II)

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Development Timeline

Source: audited financial statements except Q2/2020 data

Note: In 2013, HDBank acquired 100% equity of Societe Generale Viet Finance Company Limited (SGVF) of the Société Générale Group (Republic of

France) - one of the three largest consumer finance companies in Vietnam, to become a subsidiary of HDBank named HDFinance. In 2013, DaiA Bank had

20 years of banking experience, with a charter capital of VND 3,100 billion. Through the merger with DaiA Bank, HDBank increased its charter capital to

VND 8,100 billion, and became one of the top 10 largest commercial banks in Vietnam.

Establishment Phase Implement the first 5-year development strategy

No. of Branches,

Transaction and

Rep. offices

Post IPO Growth

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Reputable Brand Name

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Key Investment Highlights

Impressive track record of growth and operating efficiency

Strategic focus on fast growing retail and SME banking segments

Controls a leading consumer finance company

Prudent and proven risk management practices

Well-established operating base to drive strong and sustainable growth

Reputable, highly experienced, and committed Board of Directors and management team

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Loan Book (VNDbn) Customer Deposits and Valuable Papers (VNDbn)

Total Equity (VNDbn) Capital Adequacy is Well Above Regulatory Requirement

Impressive Track Record Of Growth And Operating Efficiency1


Increasing Income and Reducing Costs NIM Rises While Funding Costs Are Well-Controlled

Significant Improvements in Operating Efficiency and Profitability Sustainable and Growing Profitability Ratios

Impressive Track Record Of Growth And Operating Efficiency1


Loan Portfolio by Breakdown (September 2020) Retail Customers and Deposits Growth

Customer Deposit Breakdown (September 2020) SME Customers and Deposits growth

Strategic Focus on the Fast-Growing SME and Retail Banking Segments2

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Strategic Focus on the Fast-Growing SME and Retail Banking Segments2


Targeted Customer Segments

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HD Saison’s Total Assets (VNDtn)

Benefiting from International Partnership

Controls a Leading Consumer Finance Company3


Credit Cost Points of Sale Motorbike Loan Market Share

Profit Before Tax (VNDbn)Loan Mix (September 2020) Total Loan (VNDbn)



Profitability Cost to Income Ratio

NIM and Funding Cost NPL Ratio


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Source: Company data

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Historical NPL Ratio vs. Industry Average Credit Cost (*)

NPL Formation Rate (*) VAMC bond balance and Provision (VNDbn)

Prudent and Proven Risk Management Practices4

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Well-Established Operating Base to Drive Strong and Sustainable Growth5


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Reputable and Highly Experienced Board of Directors (HDBank)6


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Reputable and Highly Experienced Board of Directors (HD Saison)6

2020

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Digital Transformation

Source: Company data 21

Redesign digital banking infrastructure to create fully digitalized end-to-end banking processes

2. Digital Innovations1. Digitalized E2E Processes

“Happy Digital Bank”

2. Governance and ways of working

3. Technology and architecture

Customer Journeys

Operations and

support function

New proposition

development

Data analytics

3 Levels of Digitization Planned

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3Reimagine: Radically changing how processes work

thanks to comprehensive digital enablement

Automation: Taking separate components of existing

processes and automate them using digital tools

Redesign: Taking holistic view and optimizing e2e

processes with digital technologies

Immediate Focus: Improving Customer Journey

Focus on the

actual journey

the customer

goes on, not a

pre-determined

process

Covers end-to-

end view and

informs all

internal / back-

end processes

to support

Utilize multiple

channels and is

not constrained

by mechanics of

internal

processes

Improves with

cutting-edge

technology, and

is not bound by

legacy

infrastructure

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Expanding beyond core banking activities

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Digital TransformationTo become a technologically advanced financial center that provides a broad range of financial services digitally

Super App

Tablet App

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Mobile App

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2020 Key Strategic Initiatives

Ecosystem

Appointed BCG to advise on HDB digitalization

strategy and execution over the next 3 years

Optimize and re-invent customer journeys to

serve existing target customer segments,

deepening the relationship

Omni Channel with Data analytics and AI are key

focus

2020 plan is to focus on developing and enhancing

banca sales capacity and pool of products for both

life and non-life segments to achieve ambitious sales

targets.

Banca exclusive partner in 2021

The Group digital ecosystem leveraged on existing,

businesses and partner networks to be a modern

lifestyle platform that address most frequent lifestyle

needs.

Capture future trends of new Vietnamese

generations: (i) Experience more (ii) Simplicity &

Personalization and (iii) Digital connection

Continue to develop and enhance ESG program

followed international standards

Increase reporting and governance standards


Focus on Digitalization within HDB while integrating with the Group Ecosystem

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Highlights of Key Corporate Events And CSR Activities

With a solid fundamental, high growth rate,

superior asset quality and top operational

efficiency, HDBank is one of the representatives

of Vietnam which was honored by Forbes in the

list of the top 50 listed companies 2020.

HDBank received the highest scores for all

criteria. In particular, HDBank is one of the leading

banks in terms of bringing returns to shareholders

with ROE surged from 15.8% at the end of 2017 to

21.6% at the end of 2019. EPS growth at the

CAGR of 55% in the 2015-2019 period.

In August 2020, HDBank has been once again

honored with the "Best Domestic Retail Bank"

award in 2020 by Asian Banking & Finance for its

impressive results in the retail segment.

HDBank's achievements in business in general

and retail in particular are the result of its

determination and efforts to become the leading

bank in retail, consumer and SMEs


HDBank issues convertible bonds to strategic partner DEG Awarded Vietnam’s Top 50 listed companies 2020 by Forbes

Won the "Best Domestic Retail Bank" Award 2 times in a row Honored With The ASEAN Business Award (ABA) 2020

On September 25, 2020 HDBank announced

the signing of an agreement on convertible

bond issuance and strategic cooperation with

DEG, a subsidiary of German state-owned

development bank – KFW. Accordingly, DEG

will invest in convertible bonds issued by HDB.

At the same time, both parties will strategically

join hands to develop products, services and

finance packages for German businesses in

Vietnam as well as Vietnamese exporters to

Germany and Europe.

HDBank has been honoured as one of the

outstanding enterprises of Việt Nam - ASEAN in

2020 for its contributions to regional and global

economic development at the ASEAN Business

Forum +3 (with Japan, South Korea and India)

hosted by the Vietnam-ASEAN Association for

Economic Cooperation Development in Ha Noi.

HDBank was lauded for its active contributions to

sustainable development in the era of industry

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Highlights of Key Corporate Events And CSR Activities

From August 2020, HDBank implements

online customer identity verification

(eKYC) on [HDBank] Mobile Banking

application to allow customers to carry

out fast, safely and convenient online

transactions anytime, anywhere without

visiting the bank

HDBank recently further reduced lending interest rates of the VND5 trillion Swift SME

credit package to just 6.2% per annum to support the Bank’s clients, particularly

SMEs, offering them with more options of financial solutions to expand business

activities in 2020 in the context of increased market volatility due to Covid-19

pandemic.

This year, HDBank has offered various credit packages totaling VND24 trillion to

support small and medium enterprises and another VND 10 trillion to help micro-

businesses, individual business households, individual customers expand their

business, invest in high-tech agriculture, clean agriculture, renewable energy, etc. In

addition, the Bank also reduced and waived transaction fees for many clients.


HDBank pioneers the implementation of eKYC HDBank opens 305th branch in Phu Tho province

HDBank further cuts lending rates to support SME clients

HDBank whole-heartedly supports people in need affected by flood

and storm in central provinces of Vietnam

On 16 October 2020, HDBank officially opened

its first branch in Phu Tho province, which is the

305th branch in the Bank’s network. The branch

network expansion to in Phu Tho – the land of

Vietnamese ancestors is part of the Bank’s plan

to further enlarge distribution network and

facilitate people access to modern financial and

banking services ensuring financial inclusion.

To support people in central provinces of Vietnam, including Ha Tinh, Thua Thien –

Hue, Quang Tri, who are facing with mounting difficulties due to destructive floods and

storms, HDBank sent multiple delegates to bring essential goods to people in need in

affected communities. In Ha Tinh province, HDBank’s employees provided cash, food

and necessities to over 750 people. In Quang Binh province, another 200 people from

Le Thuy District and Ba Don Town were supplied with much needed necessities.

Earlier, more than VND 2 billion was donated within a week by employees via the

Bank’s Youth and Trade Unions to promptly help people in central provinces. Besides

the gifts, HDBank’s employees also expressed their sympathy and support towards the

local, many of whom suffered not only from the loss of their houses and belongings but

sometimes their loved ones.

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Distribution Network

HDBank and HD Saison are forming the largest retail banking and consumer finance distribution networks in Vietnam

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Typical Design of A Transaction Center

Thank you

Documents

HDBank’s 9M2020 Business Results Resilient Growth … SMEs, offering them with more options of financial solutions to expand business activities in 2020 in the context of increased