BIDV's credit quality improved positively, bad debts fell sharply

DNHN - Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has just announced its financial report for the second quarter of 2022. In the context of the well-controlled Covid-19 epidemic and the strong recovery of the economy, BIDV's business activities continued to remain stable and safe, performance indicators achieved positive results compared to the same period last year.

By the end of the second quarter of 2022, BIDV achieved positive business results, reflected in many aspects:

Total consolidated assets at the end of the second quarter reached over VND 1.98 million billion, up 12.4% compared to the beginning of the year.

Mobilizing capital fully meets the needs of capital use, ensuring the safety of system liquidity. By June 30, 2022, customer deposits and the issuance of valuable papers reached over VND 1.54 million billion, up 2.5% compared to the beginning of the year. Capital mobilization grew at the same time in both retail and wholesale segments.

In credit activities, customer loans reached over VND 1.48 million billion, up 9.5% compared to the beginning of the year, the growth rate was higher than that of the same period in previous years; in which, outstanding loans grew well in the segments of FDI customers (32.7%), retail customers (15.8%) and SME corporate customers (8.3%).

Credit quality has improved positively compared to the beginning of the year: The bad debt ratio according to Circular 11/2021/TT-NHNN is 0.83%, ensuring the management orientation; The bank's own bad debt coverage ratio reached 279%, the highest level ever, up from 235% as of December 31, 2021. BIDV makes full provision for risks according to debt classification. Safety criteria are guaranteed according to regulations.

6-month business performance recorded positive results: Consolidated revenue and expenditure difference reached VND 24,856 billion, up 4.6% over the same period in 2021. Consolidated pre-tax profit reached VND 11,084 billion, up 37, 5% over the same period last year, reaching 53.8% of the year plan.

With the vision of becoming the best digital-based financial institution in Vietnam, BIDV constantly improves the quality of products and services, increases the technology content, and applies the latest features on the market in card products to bring the best convenience and benefits to customers such as 3D Secure technology, Contactless touch payment technology, Blockchain technology in calculating cashback points for customers via BIDV SmartBanking application. BIDV is the first bank to cooperate with the Center for Research and Application of Population Data and Citizen Identity - Ministry of Public Security to successfully deploy the application of Citizen ID with a chip on transactions in the free area. BIDV's services such as ATM, E-Zone, etc.; launched the Omni BIDV iBank Digital Bank for institutional customers. BIDV provides a solution to connect BIDV-ERP Connection through an API platform, allowing enterprises and partners to connect directly from enterprise ERP to banks, etc.

Recognizing BIDV's efforts in business activities, prestigious international and domestic organizations have been honoured with many awards such as the Top 2,000 largest enterprises in the world voted by Forbes Magazine for 8 consecutive years. Next, Top 300 most valuable banking brands in the world by Brand Finance, Best Retail Bank in Vietnam 2022 for the 7th time voted by The Asian Banker Magazine… BIDV was also voted by Vietnam Banks Association and IDG Vietnam Group conferred four important awards at the same time: "Excellent Retail Bank 2021", "Typical Digital Transformation Bank", "Typical Innovative Products and Services" and "Typical Banks" for the community", etc.

In the coming time, BIDV will continue to closely monitor the situation of the system, manage business activities in the direction of focusing on increasing non-interest income sources, enhancing e-banking services, maximizing financial resources and cost control.

T.K