Fitch Ratings has assigned its first-ever credit ratings to Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank), recognizing the lender's strong financial position and sustainable growth. The ratings agency assigned HDBank long-term foreign- and local-currency issuer default ratings of 'BB-' with a 'Stable outlook' and a Viability Rating of 'bb-', the highest Viability Rating for Vietnamese banks.
The BB- rating is one notch above the B1 rating previously assigned by Moody's, highlighting HDBank's steady progress in strengthening its financial position and credit quality. Fitch said the ratings reflect the bank's strong profitability, stable funding base and growing position in Vietnam's banking sector, while the country's favorable economic outlook is expected to continue supporting banking industry performance.
Fitch highlighted HDBank's sustained growth in total assets and lending, alongside its expanding market share in retail banking and small and medium-sized enterprise segments. The agency expects the bank 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.
Fitch also noted that HDBank's shareholder-approved capital raising plans will further strengthen its capital buffers and support medium- and long-term growth. The newly assigned credit rating is expected to improve the bank'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 announcement is significant for HDBank as it enhances the bank's credibility and access to international capital markets. For customers and investors, the improved credit rating may lead to lower borrowing costs and more diversified funding sources, potentially translating into more competitive loan products and services. The stable outlook suggests that Fitch expects the bank to maintain its strong financial profile amid Vietnam's favorable economic conditions.
