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 recognising 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 favourable 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.
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 implications of this announcement are significant for HDBank and Vietnam's banking sector. The Fitch rating enhances HDBank's credibility in international capital markets, potentially lowering its funding costs and diversifying its funding sources. This could enable the bank to expand lending and support economic growth. For investors, the rating provides a benchmark for assessing credit risk, and the stable outlook signals resilience amid global uncertainties. The recognition also pressures other Vietnamese banks to strengthen their financial profiles to attract similar ratings, fostering overall sector stability.
