Overcoming difficulties to fulfill tasks

PHUONG MAI

Mr. Phan Duc Tu, BIDV's chairman of the Board of Directors (right) and Mr. Le Ngoc Lam, CEO at a business review meeting

BIDV held an online conference to review the bank’s performance in the first seven months and outlined solutions to meet the year’s plan.

Commenting on the business results of the first 7 months, BIDV's leadership spoke highly of and expressed thanks to the efforts of all employees across the bank’s system, particularly units under social distancing, sustaining 4 goals: ensuring the safety and health of employees; maintaining business continuity; supporting people and businesses to overcome difficulties; and fulfilling the business targets.

Given the general difficulties of the economy due to the Covid-19 pandemic, the whole BIDV system rendered efforts to meet the business plan. Credit growth increased by 7.0 percent compared to the end of 2020, with a focus on priority sectors and subjects. Significant growth was seen in retail, SME, and FDI segments and credit quality was well controlled. Offbalance sheet debt collection achieved good results, with bad debt coverage ratio reaching 131 percent for the first time. Performance indicators, asset structure, financial capacity and ability to control bad debt improved in accordance with the business development strategy.

Regarding the business continuity plan in response to the Covid-19 pandemic, the bank’s leadership emphasized that ensuring the health of employees, their relatives and business continuity is of the most significance. This is the responsibility, affection, cultural tradition of BIDV and is a mandatory requirement towards system governance and development. Since the outbreak of the Covid-19 pandemic, BIDV's leadership has issued many support schemes and policies for employees.

Besides the solutions and programs that have been implemented, BIDV continues to strengthen supporting customers affected by the pandemic. The bank said it would capture the situation of customers' production and business activities, and classify customers to take appropriate measures and actions. BIDV will also restructure repayment terms for customers, cut lending interest rates as well as reducing and exempting interest for customers affected by the Covid-19 pandemic. At the same time, BIDV will study to simplify procedures during the social distancing period; issue, adjust policies to support customers in a specific, clear, substantive manner.

In the first 6 months of 2021, to share difficulties with businesses and people BIDV reduced its income by about VND2,500 billion (USD109 million) and will continue to further reduce by about VND3,600 - 4,600 billion (USD200 million) in the last 6 months of the year as interest reduction to support customers affected by the Covid-19 pandemic.