RELEASED DATE 07 Mar 2020
The Annual General Meeting of Shareholders (AGM) adopted important issues such as the 2019 business results report and plan for 2020; Audited consolidated financial statements 2019; Plan on charter capital increase in 2020; additional election of members to the Board of Directors.
With the action motto of “Discipline - Accountability - Efficiency – Breakthrough”, in 2019 BIDV comprehensively completed the business objectives and targets in terms of business scale, quality, structure, efficiency, financial capacity, institutional development, payment to the State budget, as well as ensuring living conditions for employees; responsibility for national socio-economic development and community.
Particularly, BIDV's total assets reached VND1,489,957 billion, up 13.5% compared to 2018, continuing to be the largest commercial bank in Vietnam by assets. Deposits were diverse, safe and effective, meeting the capital use needs, with total funds mobilized in 2019 reaching VND1,374,765 billion, an increase of 12.1% from 2018. Total outstanding loans and investments hit VND1,325,737 billion; in which, outstanding loans were VND1,134,503 billion, up 12.2% compared to 2018, accounting for 13.8% of the whole sector’s credit market share.
BIDV's net service income hit VND6,038 billion, growing by 14.2% compared to 2018, with good increase in modern banking and retail services such as card services, insurance, e-banking. In 2019 difference between revenues and expenses reached VND30,864 billion, growing by 9.3% compared to 2018, highest among commercial banks. Consolidated profit before tax hit VND10,732 billion, fulfilling 104% of the target assigned by the General Meeting of Shareholders, ROA and ROE were 0.6% and 13.7%. BIDV fulfilled its obligations to the State budget, paying VND 8,550 billion in 2019. The bank also delivered maximum benefits for shareholders, paying cash dividends for 2017-2018 with a total value of VND4,560 billion, the dividend payout ratio was 7% p.a.
In 2019, with the successful cooperation deal with the foreign strategic investor KEB Hana Bank, BIDV increased its charter capital to VND40,220 billion, becoming the largest bank in Vietnam by charter capital. The bank was also recognized by the State Bank of Vietnam to meet Basel II standards ahead of time (applying Circular 41/2016/TT-NHNN starting 1 December 2019).
By the end of 2019, BIDV's share market price had increased by 42.5% compared to the beginning of the year, and the percentage of foreign investors' ownership in BIDV increased to 18.03%. BIDV’s market capitalization at the end of 2019 reached VND186,000 billion, ranking 6th in Vietnam's stock market which reflected investors' expectation on BIDV's development potential.
Key indicators for 2020
Vietnam's economy is forecast to face difficulties and challenges in 2020, especially given the severe impact of the Covid-19 outbreak which hit the banking activities in general and BIDV in particular. However, thoroughly grasping the direction of the Government and the State Bank of Vietnam, the whole BIDV system is determined to complete the assigned tasks.
Defining 2020 as an important year: the year for completing the Restructuring scheme in association with handling bad debts according to the National Assembly’s Resolution 42 and Prime Minister’s Decision 1058/QD-TTg, and the first year for implementing the development strategy to 2025 and vision to 2030, BIDV said it would vigorously come up with uniform solutions and measures to effectively implement the monetary policy, improve operational quality, business efficiency; creating favorable conditions and meeting all demands for banking products and services of the economy.
The AGM outlined key business targets for the bank in 2020, including: Deposit growth in line with capital use demand, expected at 9%; Credit growth complies with the central bank’s regulations, currently at 9%; Consolidated profit before tax at VND12,500 billion; NPL ratio below 1.7%; and dividend payout ratio expected at 7% p.a.
BIDV will also maintain a sustainable and quality growth; bolstering the leading position in key market segments with a focus on retail and SME customers; aggressively implementing the digital banking strategy, boosting electronic sales channels, cashless payment; promoting multi-service business model, strengthening management capacity according to international standards.
The AGM also elected Mr. Le Kim Hoa – Senior Executive Vice President and Mr. Tran Xuan Hoang - Senior Executive Vice President of BIDV as members of the bank’s Board of Directors for the 2017-2022 term, bringing the number of members of the Board of Directors to 10, including 1 foreign member.