Maintaining stable business operations in the first 9

tHIeu nguyen

Maintaining stable business operations in the first 9 months

BIDV has just released financial statements of Q3. Given the general difficulties of the economy and the banking sector due to Covid-19, the bank is striving to maintain stable business operations and ensure safety and efficiency. However challenges remain for the bank in fulfilling the business targets.

As of 30 September, BIDV’s total consolidated assets had reached about VND1.468 quadrillion (USD63.3 billion), a decrease of 1.5 percent compared to the beginning of the year, mainly due to a net decrease in deposits at the State Bank. Customer deposits reached over VND1.145 quadrillion (USD49.4 billion), growing by 2.8 percent (net increase of over VND30,840 billion) compared to the beginning of the year.

Loans to customers reached over VND1.145 quadrillion (USD49.4 billion), up 2.5 percent (net increase of over VND28,360 billion) compared to the beginning of the year. The slow increase in outstanding loans at BIDV as well as some banks was mainly due to the impact of Covid-19. Credit packages to support customers affected by the pandemic need time to be effective and depend on the absorption of the market. The NPL ratio of the banking business alone was controlled at 1.87 percent. Currently, BIDV is conducting an overall review of its customer base (financial situation, solvency, level of damage of each customer) to take appropriate measures to ensure safe and effective credit growth and control NPL.

Non-interest income saw positive results. Net service income (excluding guarantee fees) reached more than VND3,667 billion (USD145.1 million), up 21.5 percent (net increase of VND648 billion) year-on-year; revenue from forex trading reached VND1,254 billion (USD54 million), up 16.4 percent (net increase of VND177 billion) yearon-year; income from trading securities and investment securities reached VND479 billion (USD20.6 million) and VND1,009 billion (USD43.5 million), respectively, with the net increase being VND217 billion (USD9.4 million) and VND1,275 billion (USD55 million), respectively year-on-year.

Consolidated revenue and expenditure difference was over VND23,181 billion (USD999.2 million); consolidated profit before tax reached VND7,062 billion (USD304.4 million), a slight increase compared to the same period last year and an appropriate growth in the context of BIDV using resources to support the economy and customers affected by Covid-19. BIDV has made full provision for risks according to debt classification. Operational indicators are ensured according to regulations.

The bank said it would continue to closely monitor the system situation, review the impact of Covid-19 and natural disasters to do business towards focusing on increasing noninterest income, boosting e-banking services, maximising income sources and controlling costs in order to fulfill the targets set for 2020.