RELEASED DATE 12 Mar 2021
The AGM approved of important issues such as 2020 business performance report and plan for 2021; Performance of the Board of Directors and Supervisory Board 2020; Audited consolidated financial statements for 2020; Amendments to the bank charter and related regulations; Plan on charter capital increase in 2021; Additional election of members to the Board of Directors and Supervisory Board for the 2017-2022 term.
Mr. Phan Duc Tu - Chairman of BIDV's Board of Directors delivering a speech on the bank's business results in 2020
Positive performance despite challenges
Despite the severe impact of the natural disasters and the Covid-19 pandemic, BIDV system made great efforts to ensure business continuity and safety and achieved positive results: Comprehensively fulfilling the 2020 business plan targets as assigned by the AGM; growth in accordance with the economic and market developments; preserving and increasing the State capital at BIDV; fully accomplishing obligations to the state budget; ensuring the interests of shareholders and employees. The bank also effectively performed its responsibilities to the community, proactively reducing its income in order to share difficulties with businesses and individuals across the country affected by natural disasters and the pandemic.
In particular, the bank’s total assets reached VND1,516,686 billion, up 1.8% compared to 2019 - the largest commercial bank in Vietnam by assets. Deposits in 2020 were diverse, meeting the capital demand, reaching VND1,402,248 billion, of which deposits from organizations and individuals hit VND1,295,533 billion, an increase of 9.1% from 2019, accounting for 11% of the share of the banking sector’s deposits. Total outstanding loans and investments hit VND1,438,520 billion, growing by 8.5% from 2019, of which outstanding loans reached VND1,230,569 billion, up 8.5% compared to 2019 and accounting for 13.4% of the economy’s credit market share.
BIDV's service income hit VND7,219 billion, up 19.6% compared to 2019 – a very positive figure given the difficult business environment. The difference between revenues and expenses hit VND32,344 billion, an increase of 4.8% compared to 2019. Consolidated profit before tax hit VND9,026 billion, surpassing the target assigned by the State Bank of Vietnam. However this figure was still lower than that of 2019 due to BIDV’s proactive income reduction by more than VND6,400 billion for restructuring debt, lowering and exempting interest rates, interests and fees to support Covid-19 affected businesses and people according to the direction of the State Bank. Safety ratios complied with the State Bank’s regulations.
In 2020 BIDV paid VND6,437 billion to the State budget, making the cumulative amount paid to the State budget over the 5 years 2016-2020 to reach nearly VND27,900 billion - among the largest taxpayers in Vietnam. In the year, BIDV paid cash dividends for 2019 totaling VND3,218 billion, the dividend payout ratio of 8% p.a.
BIDV’s market capitalization at the end of 2020 had reached VND193,000 billion, earning the bank fifth ranking in Vietnam's stock market. As of 31 December 2020, BIDV share closed at VND47,900, up 56% compared to the market bottom of March 2020 and up 4% compared to the beginning of 2020.
Setting key targets for 2021
The world economy is forecast to face challenges in 2021 due to impact of the Covid-19 pandemic, global climate change, the trade tension between US and China,… Vietnam’s National Assembly Resolution 124/2020/QH14 set a number of key indicators such as: GDP growth at 6.5%, CPI at 4%.
Following the Government’s Resolution 01/NQ-CP in 2021 and the State Bank of Vietnam’s Directive 01/CT-NHNN on key tasks of the banking sector, with the action motto “Discipline – Quality – Digital Transformation”, BIDV is determined to accomplish the 2021 business plan.
The AGM approved of some key business targets for BIDV in 2021, particularly: deposit growth in line with capital use demand, expected at 12-15%; credit growth in compliance with the limit assigned by the central bank, expected at 10-12%; consolidated profit before tax expected at VND13,000 billion in accordance with market developments and support for customers to overcome difficulties caused by Covid-19 and recover business activities. Dividend payout ratio not lower than that of 2020 (the indicators are subjected to change depending on new developments of Covid-19 (if any) and competent authorities’ approval).
BIDV also strives to maintain sustainable and quality growth, cementing leading position in key segments with a focus on retail and SME banking; aggressively implementing digital banking, promoting multi-service business model and improving governance capacity according to international standards.
Newly-selected members of BIDV's BOD and Supervisory Board
For enhancing the bank’s system capacity, the AGM agreed to elect Mr. Le Ngoc Lam (Senior Executive Vice President in charge of the Board of Management) and Mr. Nguyen Quang Huy (former Chairman of Deposit Insurance of Vietnam) as Board member and Independent board member for the 2017-2022 term, respectively, elect Mrs. Nguyen Thi Thu Ha (Deputy Head of BIDV’s Planning Department) to the Supervisory Board for the 2017-2020 term. With this additional election, BIDV’s Board of Directors consists of 11 members including one foreign member and one independent member; the Supervisory Board has 3 members.
For further information please contact:
Branding and Communication Department - Bank for Investment and Development of Vietnam JSC (BIDV)
Tel: +84 24.22205256; Fax: +84 24.22200399; Website: www.bidv.com.vn