BIDV becomes largest bank in Vietnam by total assets

BIVD's AGM 2023

As of December 31, 2022, BIDV's total assets have reached over $90.43 billion, representing a 20.8 per cent increase compared to the previous year, while credit growth increased by 5 per cent, with outstanding loans reaching over $68.8 billion.

Capital mobilisation increased by 2.3 per cent to reach over $72.2 billion, while the ratio of bad debts was controlled below 1.4 per cent.

This milestone makes BIDV the first bank in Vietnam to cross the $90 billion mark, solidifying its position as the largest bank in the country in terms of total assets.

Such a significant accomplishment is indicative of the astute financial management and adept strategic planning of this institution, which has resulted in substantial growth.

Furthermore, BIDV targets to increase its charter capital from $2.2 billion to $2.7 billion in 2023, and plans to issue over one billion shares.

One of the key issues that shareholders are concerned about is the impact of Circular 02/NHNN, which outlines the restructuring of repayment periods and the classification of debt for customers facing financial difficulties.

Chairman of BIDV's Board of Directors, Phan Duc Tu, has highlighted the importance of the circular, which has helped ease the financial burden on businesses and allowed them to access new credit sources. At the same time, it also helps banks reduce bad debts and risk provisions, which are expected to support businesses and the economy to overcome difficulties.

BIDV is closely monitoring and classifying its debts to ensure appropriate handling of the issue, and its management is still committed to the plan to issue private shares, despite the challenging market conditions.

The bank is currently in talks with potential investors and working with regulatory bodies to find the best fit for this plan.

Tu revealed that BIDV is still planning to do so and has contacted 38 potential investors. However, due to the unfavourable market, investor demand has deteriorated.

"BIDV will continue to implement this plan this year. We have identified some potential investors and will work with regulatory bodies and other partners to find the best fit for this plan," Tu said.

In terms of lending to the real estate market, BIDV's management has identified legal obstacles as the primary challenge facing this industry.

“BIDV has met with 15 leading real estate developers, confirming that over 70 per cent of the difficulties they face are legal, while the remaining 30 per cent are related to funding. BIDV will continue to review and classify its loans to find the appropriate handling plan," the bank's leadership said.

Overall, BIDV's impressive performance in the first quarter of 2023 demonstrates the bank's resilience and adaptability to challenging market conditions.