BIDV sustains stable and safe operation in the first 9 months

Xuan tHIeu

BIDV has released its financial report for the third quarter of 2021 with business activities continuing to remain stable and safe despite the pandemic.

As of 30 September 2021, BIDV had achieved positive business results, with total consolidated assets reaching over VND1.68 quadrillion (USD74 billion), up 11.2 percent year to date.

Customer loans reached over VND1.328 quadrillion (USD58.5 billion), up 9.4 percent year to date, which is more positive than the performance in the same period last year. Customer segments with good growth include Retail, SMEs, and FDI. Credit quality improved positively compared to the beginning of the year. Particularly, bad debt ratio according to Circular 11 was 1.39 percent as of 30 September 2021 (a decrease by 0.15 percent compared to the beginning of the year, in line with the State Bank’s direction of below 1.6 percent); Group 2 debt ratio was 1.29 percent (down 0.03 percent year to date).

Customer deposits and issued valuable papers reached over VND1.424 quadrillion (USD62.7 billion), up 10.5 percent compared to the beginning of the year.

Non-interest income recorded positive results, specifically: net service income hit VND6,226 billion (USD274 million), up 21 percent over the same period last year, in which services with high growth rate of over 30 percent include digital banking (45 percent), insurance (60 percent). Consolidated profit before tax reached VND10,733 billion (USD473 million), up 52 percent year-on-year, completing 83 percent of the bank’s business plan. BIDV has made sufficient provisions for risks according to regulations. Operational safety criteria are compliant with the State’s regulations and in line with international practices.

As Vietnam’s leading financial institution, BIDV continues to implement solutions to supporting businesses, people and the economy to overcome the difficulties caused by the Covid-19 pandemic, following the policy and direction of the Government and the State Bank of Vietnam. Total budget for the support of the year is estimated at VND7,100 - 7,500 billion (USD330.4 million). In the first 9 months of 2021, BIDV proactively reduced its income by over VND5,200 billion (USD229 million) to implement credit packages at preferential rates as well as reducing lending rates and service fees for customers.

In addition to the business activities, BIDV is also active in social security activities. As of 30 September 2021, total funding for the implementation of social security programs committed by BIDV was VND400 billion (USD17.6 million). In August 2021, BIDV launched a special credit - service program of VND25,000 billion (USD1.1 billion) named “Accompanying the health sector, joining hands to overcome the pandemic” to support medical staff nationwide. The package disbursements as of the end of September this year had been more than VND5,140 billion (USD226.4 million).