Ho Chi Minh City, Vietnam, 17 April 2015 - The Bank for Investment and Development of Vietnam JSC (BIDV) successfully held its 2015 Annual General Meeting of Shareholders Meeting (AGM). The bank announced to pay dividend for 2014 at 10.2% in cash. Previously at the 2014 AGM, BIDV set the dividend payout ratio of no less than 9%.

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Business performance in 2014: As of 31 December 2014, BIDV’s total assets stood at VND 650,340 billion, up 18.6% against 2013. Deposits hit VND 501,909 billion, up 20.4%, higher than the 13% as set by the AGM 2014. Outstanding loans (including loans to organizations, individuals, external financial leasing, and corporate bond investments) reached VND 463,567 billion, up 18.9% against end-2013, higher than the 16% as set by AGM 2014. Credit growth was positive, focused on priority areas. Credit quality was improved. NPL ratio was well controlled at 2.03%, lower than that set by the AGM 2014 (<3%). Profit before tax in 2014 amounted to VND 6,297 billion (up 19% y-o-y and completed 105% of the number set by the AGM). BIDV’s financial ratios were all within safe limits with ROA at 0.83% and ROE at 15.15% (AGM 2014 set ROA and ROE at 0.79% and 13.8% respectively). CAR ratio was over 9%, ensuring good liquidity in accordance with SBV’s regulation. Dividend payout ratio is 10.2% and is paid in cash.

Subsidiaries’ operations have made positive changes in 2014:  BIDV Insurance Corporation (BIC)’s profit before tax (PBT) stood at VND 138 billion, up 9,9% against 2013; BIDV Securities Company (BSC)’s PBT reached VND 75.38 billion, among the leading bond brokerage. Joint ventures and commercial presences in foreign countries operated stably and made higher profit than the previous year. PBT of the joint ventures reached VND 495 billion. The bank’s commercial presences successfully fulfilled tasks assigned by BIDV, contributing to strengthen BIDV brand and position in the foreign countries.

International cooperation: BIDV continued to successfully act as chairman of Association of Vietnamese Investors in Laos, Cambodia and Myanmar, expanded and promoted trade investment in potential markets such as Russian Federation, Europe and Northeast Asia. BIDV also made significant steps in reaching Japan market and connecting Japan – Vietnam markets. The bank partnered with U.S-based MetLife to establish a joint venture named BIDV Metlife.

Establishment of BIDV Consumer Finance Company

With view of increasing retail market share to diversify business activities and serve various customer segments, thus increasing the bank’s income, BIDV submitted a proposal to the AGM for approval of the establishment of BIDV Consumer Finance Company. In terms of risk issue, the establishment of the consumer finance company aims to classify the customer segments by risk level in which credit segment with high risk levels will be separated from commercial bank operations for better risk management.

Merger of Mekong Housing Development Bank (MHB) into BIDV

The BIDV’s BOD reported to the AGM on the merger of MHB into BIDV. This is one of the steps in the process of restructuring commercial banks following the Prime Minister’s approval.

Established in 1997, after 17 years of operation, MHB’s total assets were 110-fold increase against the first days. MHB is among top 10 banks with the largest branch network in Vietnam (44 branches, 185 transaction offices in 35 provinces/cities nationwide, especially the Mekong Delta). Loans extended to customers in Mekong Delta account for 50% of the bank’s total loans.

With the principle of 'keeping everything unchanged and stock swap ratio at 1:1”, the merger will expectedly not disorder the bank’s business activities as well as cause any fluctuations before and after the merger.

The merger of MHB into BIDV will not only help BIDV expand its network and customer base but also strengthen BIDV’s capability in the agriculture and rural sector; enhance BIDV’s role and position as a strong financial institution operating under international standards and practices. The merger will make BIDV capable of competing with other banks in the region and the world.

Relief from duty and additional election to BIDV’s Board of Directors (BOD) and Supervisory Board for the term 2012 – 2017

Relief from duty:

·         Mr. Hoang Huy Ha is relieved from duty as BIDV’s BOD member, effective 1 June 2015 for retirement;

·         Mr. Nguyen Van Ha is relieved from duty as BIDV’s independent BOD member;

·         Mr. Tran Van Be is relieved from duty as Head of BIDV’s Supervisory Board.

 

Additional election for the term 2012 – 2017

·         Independent BOD member elected: Mr. To Ngoc Hung;

·         Additional BOD members elected: (1) Mr. Ngo Van Dung, (2) Ms. Nguyen Thi Kim Thanh, (3) Mr. Huynh Nam Dung, (4) Mr. Nguyen Phuoc Hoa, (5) Mr. Dang Xuan Sinh.

 

Huynh Nam Dung, Nguyen Phuoc Hoa, Dang Xuan Sinh, and Nguyen Van Loc will become BIDV’s BOD members when they resign as BOD members at MHB in accordance with the regulation.

Ms. Vo Bich Ha is additionally elected to the BIDV’s Supervisory Board for the term 2012 – 2017.

Business indicators set for 2015

The BIDV’s Annual General Meeting of Shareholders set the business indicators for 2015 as follows:

·         Deposit growth: 16.5%;            

·         Credit growth: 16%;

·         PBT: VND7,500 billion;

·         NPL ratio: <3%, expectedly ≤2,5%;

·         ROA: 0,85%;

·         ROE: 14%-15%;

·         Dividend payout ratio: >9%.