BVBank exhibits resilient growth amid challenging economy

BVBank

The bank's total assets swelled substantially in Q2, surpassing the $3.4 billion mark. The bank's outstanding credit reached nearly $2.25 billion, reflecting a 5.9 per cent growth compared to the year's onset. This credit growth, impressive amid testing market conditions, is largely attributed to personal loans and those extended to small and medium-sized enterprises.

Auto/motor repair, manufacturing, hospitality, agribusiness and consumer goods sectors - identified as low-risk industries - dominated the bank's portfolio.

For the year's first half, BVBank proactively implemented substantial support solutions. In response to the persistent pressures of paying interest on prior deposits, BVBank rolled out preferential packages, including discounted interest rates on additional capital loans for business operations, and a special 10.5 per cent interest rate for personal customers. Coupled with lowered transaction fees and various credit services, the bank eased the burdens on currently beleaguered businesses.

BVBank's total deposits as of June 30, 2023 stood at over $3 billion, a 2 per cent uptick from the previous year. Particularly, deposits from economic organisations and citizens exceeded $2.5 billion, 80 per cent of which were concentrated in retail customers, marking a 1.36 per cent increase compared to the year's end. Funds raised through electronic channels accounted for about 30 per cent of total deposits.

Moving on to the digital front, BVBank saw a 30 per cent increase in new customers, 50 per cent increase in transaction volume, and 20 per cent in transaction value for H1 2023, compared to the same period in 2022.

Last year, the bank reported a 70 per cent surge in new customers, and digital transactions nearly doubled compared to 2021.

By the end of H1 2023, BVBank managed 116 business points, eight more than at the start of the year. Alongside branch expansion, the bank added nearly 300 staff, bringing the total to 2,700 by Q2 end. These strategic moves saw operating costs for Q2 2023 jump by 34 per cent on-year.

Pre-tax profits for Q2 2023 reached just over $540,000, accumulating to around $1.63 million for the first half of the year. BVBank leaders maintained that this significant resource investment into retail is a strategic focus. Despite banking sector challenges in 2022 and 2023, BVBank perseveres with this strategy, accepting its short-term impact on profits.

In June 2023, the State Bank of Vietnam approved BVBank's request to open an additional 15 transaction points, bringing the total to 131, with a goal of reaching 140 by 2024.

BVBank targets move to Ho Chi Minh City Stock Exchange in 2023 Viet Capital Bank (BAN VIET Bank) held its annual general shareholders' meeting on April 26, where the agenda was discussed. The meeting was a success, reflecting the bank's ability to adapt to market changes while maintaining operational safety and efficiency.

BVBank builds stronger identity with new name BVBank, formerly known as Viet Capital Bank, has received approval from the State Bank of Vietnam (SBV) to change its English name abbreviation as part of its strategy to enhance its customer-centric services and establish a stronger brand identity.