BIDV Highlights
M anh Hai
Sustaining stable business performance amid Covid-19 The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has released its financial report for Q22020. The bank’s business performance remained stable despite the turbulent business climate resulting from the Covid-19 pandemic.
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ver the first six months of 2020, due to the impact of the Covid-19 pandemic and other cyclical factors, BIDV’s deposits and outstanding loans increased slightly compared to the beginning of the year. Off-balance sheet debt collection faced difficulties and profit before tax decreased over the same period. However, net service incomes and differences between revenue and expenditure were ensured. Of particular note, BIDV made sufficient provision for VAMC bonds in accordance with regulations and bought back all VAMC bonds in the first quarter of 2020. As of 30 June, BIDV posted total consolidated assets that reached over VND1,446 trillion (USD62.3 billion), down 2.93 percent compared to the beginning of the year. Loans to customers of the commercial banking sector alone reached nearly VND1,104,484 billion (USD47.6 billion), an increase of over VND22,927 billion (USD988 million) or 2.12 percent year to date. The slow increase in outstanding loans at BIDV as well as at a number of other banks was mainly due to the impact of the Covid-19 pandemic. Credit packages designed to support customers affected by the pandemic need time to be effective as well as to
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reach market absorption capacity. The non-performing loan ratio of the commercial banking sector alone was controlled at 1.89 percent. BIDV conducted an overall review of its customer base (financial position, solvency and level of damage of each customer) to take appropriate measures, ensuring safe and effective credit growth and controlling the NPL ratio. Deposits by customers within commercial banking alone reached over VND1,111,400 billion (USD48 billion), up 1.52 percent compared to the beginning of the year. Deposits decreased in the first quarter of the year before stabilising again in the second quarter. Consolidated figures as of 30 June showed that net service income (excluding guarantee fees) hit over VND2,264 billion (USD97.6 million), up VND296 billion year-on-year (equivalent to 15 percent). Income from forex trading reached VND832 billion (USD35.9 million), an increase of VND97.4 billion (equivalent to 13.3 percent) year-on-year. Income from trading securities and investment securities reached VND421 billion (USD18 million) and VND 669 billion
