Fitch Ratings has assigned its first-ever credit ratings to Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank), placing the lender among the highest-rated Vietnamese banks and recognizing its strong financial position, profitability and sustainable growth. The 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, reflecting 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.
The agency highlighted HDBank's sustained growth in total assets and lending, alongside its expanding market share in the retail banking and small and medium-sized enterprise segments. It 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, while the newly assigned credit rating is expected to improve the bank's access to global capital markets, diversify funding sources and lower funding costs. This development is significant for the banking industry as it underscores the growing international confidence in Vietnamese banks and may encourage foreign investment.
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 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 and Net Stable Funding Ratio, all exceeded Basel III minimum requirements. The strong financial metrics demonstrate HDBank's resilience and ability to maintain growth even in a competitive banking environment.
The implications of this rating are far-reaching. For HDBank, it enhances its reputation and ability to attract international capital, potentially lowering its cost of funds and enabling more competitive lending rates. For the Vietnamese banking sector, it signals that local banks are achieving global standards of creditworthiness, which could lead to increased foreign investment and stability. For customers and businesses, the rating may translate into better access to credit and financial services as the bank expands its operations. Overall, Fitch's recognition of HDBank's strong financial profile highlights the bank's pivotal role in Vietnam's economic growth and its potential to further integrate into global financial markets.
