BVBank hits 97 per cent of annual target in Q3 surge

In the challenging landscape of financial markets and the banking sector, BVBank has successfully maintained a strategic asset structure geared towards safety. A key focus for the bank this year has been boosting the quality and quantity of its assets.

"Amidst the numerous market challenges, our commitment to enhancing asset quality and supporting sectors like agriculture, rural development, and small- and medium-sized enterprises (SMEs) has been crucial," a BVBank spokesperson stated.

As of the end of Q3, the bank's total assets witnessed an increase of over VND5 trillion ($211 million) from the end of 2022. This marks the completion of 97 per cent of its ambitious plan of approximately VND86.6 trillion ($3.65 billion) for the year.

In preparation for the peak lending season at the end of the year, BVBank has mobilised capital, reaching nearly VND76.4 trillion ($3.22 billion) in total – an increase of 8.4 per cent on-year.

The mobilisation from economic organisations and citizens alone accounted for over VND64 trillion ($2.70 billion), up 17 per cent on-year.

The credit balance reached over VND53 trillion ($2.24 billion), a 4.3 per cent increase from the beginning of the year, primarily through loans to corporate and individual customers – excluding corporate bond debt.

A pivotal strategy for BVBank has been the transition of its lending structure towards individuals and embracing the digital transformation to reduce its portfolio risk.

“The shift to digital banking has brought about positive changes, with new customers on digital channels growing by over 40 per cent since the start of the year and transaction volumes doubling compared to the same period in 2022,” the spokesperson elaborated.

By the end of Q3 2023, the individual customer segment constituted 67 per cent of the bank’s total loan balance.

Following directives from the government and the State Bank of Vietnam, BVBank launched robust support measures, including interest rate reductions on additional business loans and special loan packages for individuals, part of a larger VND4 trillion ($168.4 million) scheme.

However, the bank still faces the challenges of high funding costs, the adverse impact of the real estate market, and the broader economic difficulties related to credit quality and risk provisioning.

Despite these headwinds, BVBank's net interest income in Q3 reached nearly VND460 billion ($19.4 million), with a pre-tax profit of about VND22 billion ($928,000), marking a strong improvement over Q2.

The profit for the first nine months stood at approximately VND61 billion ($2.57 million).

“From the end of Q3, we've observed signs of economic recovery, boosting our clients' activities and laying a foundation for the bank’s growth in the remaining months of 2023,” BVBank's leadership shared.

Established in 1992, BVBank has undergone significant transformation for over 30 years, emerging as a robust player in the financial market. Committed to growth, sustainability, and quality, it aims to become a modern, customer-centric retail bank that focuses on individuals and SMEs.

In its strategic phase from 2021 to 2023, the bank is also keen on becoming a leader in terms of the digital transformation within the banking sector.

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