RELEASED DATE 26 Apr 2019
Positive results in 2018
In 2018 BIDV has comprehensively completed business targets, improving asset quality and financial situation as well as institutional reform. This laid solid foundation for the bank to complete the restructuring plan for the period 2016-2020.
BIDV’s total assets reached VND1,313,038 billion, maintaining its position as the largest bank by total assets in Vietnam; Mobilized capital reached VND1,226,454 billion; Outstanding credit and investment reached VND1,237,755 billion,... Performance indicators improved significantly compared to the previous year (net service revenue increased by 20%, difference between income and expenditure increased by 21%, profit before tax increased by 9%, hitting VND 9,473 billion, exceeding the target assigned by the AGM); ROA at 0.6%, ROE 14.6%; NPL 1.8% as of 31 December 2018.
BIDV’s customer base expanded in both scale and quality, especially the number of individual customers which increased 13% from 2017, reaching more than 11 million customers, accounting for 12% of Vietnam's population. BIDV received the "Best Retail Bank in Vietnam" award for 5 consecutive years from The Asian Banker, and “Outstanding Retail Bank in Vietnam” award for 3 consecutive years from Vietnam Banks Association (VNBA).
Customer service quality improved through modern distribution channels. Number of customers conducting transactions via electronic banking increased by 26%/year, reaching 9.2 million in 2018 while volume of e-banking transactions were over 82 million, an on-year increase of 87%.
BIDV shares (BID) increased by 35% compared to the beginning of 2018. The average trading volume was 2.7 million shares per session. P/E ratio was at 16, higher than the average level (11.9) of Top 5 banks with the largest market capitalization. These numbers reflected the positive prospect of investors in the bank’s potential.
In 2018, BIDV received approval from the State Bank of Vietnam to increase charter capital through private placement of over 600 million shares or 17.65%. BIDV also successfully issued two batches of bonds, specifically: private placement of more than VND1,000 billion, and public bond issue of VND4,000 billion for Tier 2 capital.
As the leading bank in IT application, in 2018, BIDV promoted its digital banking project. S&P evaluated BIDV as one of the banks actively cooperating with FinTech to promote digital banking application, especially in the retail banking sector.
Key indicators for 2019
In 2019, Vietnam's economy is forecast to continue its sustainable growth with GDP targeted at 6.8% and inflation below 4%. Against that backdrop, the AGM 2019 outlined key targets for the bank, including: Mobilized capital growth at 11%; Outstanding loans increasing by 12% in compliance with the central bank’s regulations; Profit before tax at VND10,300 billion; NPL below 2%; and Dividend payout ratio will not lower than that of 2018.
The AGM 2019 agreed to authorize the Board of Directors to amend the business plan 2019 and dividend payout ratio at the request of competent authorities, and/or when necessary, direct the implementation of the business plan 2019 as approved by the Meeting.
For more information please contact:
Communication and Branding Department
Joint Stock Commercial Bank for Investment and Development of Vietnam
Tel: +84.24. 22205256; Website: www.bidv.com.vn