Bright prospects for bank stocks

ManH HaI

BIDV Insurance holds AGM 2021

BIC logo seen on its office building in Hanoi

On 16 April 2021, BIDV Insurance Corporation (BIC) held its Annual General Meeting of Shareholders 2021, posting positive results.

In 2020, the Vietnamese non-life insurance market faced many challenges due to the Covid-19 pandemic. Social distancing which made it difficult to reach customers, limited domestic and foreign flights, and tightened personal and business spending, etc., had a strong impact on business activities of insurance companies.

According to data from the Insurance Association of Vietnam, total non-life insurance premiums for the whole market in 2020 were estimated at VND57,102 billion (USD2.5 billion), an increase of 8 percent compared to 2019.

Despite the challenges of the pandemic, with relentless efforts and effective business solutions, BIC had the most successful business year over the 15 years of operation.

Particularly, total revenue of insurance premium of BIC alone in 2020 reached VND2,562 billion (USD111 million), up 13.8 percent compared to 2019, and fulfilling 105.6 percent of the year’s plan. Direct insurance premiums reached VND2,363 billion (USD103 million), an increase of 17.3 percent compared to last year (more than double the growth rate of the whole market). With this result, BIC rose from the eighth to seventh position in the top non-life insurance companies in terms of market share of direct premiums.

BIC's 2020 business indicators all achieved good results. BIC's total consolidated pre-tax profit in 2020 reached VND375 billion (USD16.3 million), an increase of 38.8 percent compared to 2019, completing 155.7 percent of the year’s plan as assigned by the General Meeting of Shareholders. Of which, BIC's pre-tax profit was VND364 billion (USD15.8 million), up 38.9 percent year-on-year. In 2020, BIC continued to see high profits in insurance business.

Besides the good business results, BIC also achieved many positive results in other areas including getting a B++ rating by A.M. Best, being honoured with many prestigious titles and awards such as Top 10 most prestigious non-life insurance companies in Vietnam, Top 500 most profitable enterprises in Vietnam, etc.

In 2021, given Vietnam and the world still facing the impact of the Covid-19 pandemic, BIC continues to bolster growth in association with operational efficiency. Accordingly, the company strives to achieve VND2,830 billion (USD123 million) in premium revenue for BIC alone (up 10.5 percent compared to 2020), continuing to maintain profits in the insurance business and paying dividend at the expected rate of 10 percent.

PHuong gIang

BSC looks for strategic partners

BIDV Securities Company, (BSC, stock ticker: BSI) - a subsidiary of BIDV, set pre-tax profit at VND180 billion, up 11 percent year on year at its 2021 Annual General Meeting of Shareholders (AGM) held on 10 April 2021.

According to BSC, in 2020 BSC's total operating revenue reached VND913 billion (USD40 million) (up 50 percent compared to 2019), pretax profit was VND161.5 billion (USD7 million), an increase of 18.3 percent compared to 2019, and 88 percent higher than the plan. Capital adequacy ratio was 470 percent.

BSC affirms its leading position by market share of government bond brokerage on Hanoi Stock Exchange (HNX). In 2020, the company maintained its position among the Top 10 securities companies with the largest market share of stock brokerage, fund certificates and covered warrants on Ho Chi Minh Stock Exchange (HoSE), among Top 10 securities companies with the largest brokerage market share on Unlisted Public Company Market (UpCom), and Top 10 securities companies with the largest derivative brokerage market share.

According to information released at the AGM, BSC said to pay 2020 dividends in cash at the ratio of 9 percent.

The BSC's Leadership submitted to the General Meeting of Shareholders for approval of the transfer of BSI shares from HoSE to HNX. By actively changing the bourse, BSC seeks to help investors promptly execute transactions based on real-time demand and limit risks arising from transaction problems. As soon as the new trading system of HoSE is put into operation, based on the actual situation, BSC will consider and propose the transfer of BSI shares back to HoSE.

BSC assessed that the market prospect in 2021 still has room for growth. However, the room is not much due to the high stock prices after recovering, while the world market is fluctuating unpredictably. BSC forecast that in the base scenario the VN-Index could increase by 10-15 percent in 2021.

BSC set out business goals for 2021 with pre-tax profit reaching VND180 billion (USD7.8 million), an increase of 11 percent compared to 2020. The company estimated its pre-tax profit in the first quarter of 2021 at VND70 billion (USD3 million), completing nearly 40 percent of the year’s plan.

BSC said it continues to seek strategic investors, shareholders in 2021 to improve its financial capacity.

Members of the Board of Directors and Board of Management of BSC at the AGM 2021