The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has released its financial report for Q2-2020. Accordingly, the bank’s business performance continued to be stable amid the difficult business climate due to Covid-19.

In the Q2 and the first half of 2020, due to the impact of the Covid-19 pandemic and cyclical factors, deposits and outstanding loans of BIDV increased slightly compared to the beginning of the year; off-balance sheet debt collection faced difficulty, profit before tax decreased over the same period. However, net service incomes, differences between revenue and expenditure were ensured. Especially, BIDV has made sufficient provision for VAMC bonds in accordance with regulations and bought back all VAMC bonds in the first quarter of 2020.

BIDV’s business results as of 30 June 2020 were as follows:

- Total consolidated assets reached over VND1,446 trillion, down 2.93% year to date.

- Loans to customers of the commercial banking alone reached nearly VND1,104,484 billion, an increase of over VND22,927 billion or 2.12% compared to the beginning of the year. The slow increase in outstanding loans at BIDV as well as at some banks was mainly due to the impact of Covid-19 pandemic and that credit packages to support customers affected by the pandemic need time to be effective as well as market absorption capacity.

Non-performing loan ratio of the commercial banking alone was controlled at 1.89%. Currently, BIDV has conducted an overall review of its customer base (financial position, solvency, level of damage of each customer) to take appropriate measures, ensuring safe and effective credit growth, and controlling the NPL ratio.

- Deposits of individual customers of the commercial banking alone reached over VND1,111,400 billion, up 1.52% compared to the beginning of the year. Deposits decreased in the first quarter but stabilized again in the second quarter of 2020.

- Consolidated figures as of 30 June 2020 showed that net service income (excluding guarantee fees) hit over VND2,264 billion, up VND296 billion y-o-y (equivalent to 15%). Income from forex trading reached VND832 billion, an increase of VND97.4 billion (equivalent to 13.3%) y-o-y. Income from trading securities and investment securities reached VND421 billion and VND 669 billion, respectively, with a net increase of VND333 billion and VND932 billion, respectively y-o-y.

- Consolidated difference between revenue and expenditure reached more than VND14,596 billion, profit before tax was VND4,454 billion. BIDV made full provision for risks according to loan classification. The operational safety indicators were ensured according to regulations.

BIDV said it would continue to closely monitor the system situation, review the impact of the Covid-19 to do business towards increasing non-interest income, strengthening e-banking services, maximizing income sources and controlling costs.

BIDV was one of the pioneers in supporting the communities affected by Coid-19, continuously and timely rendering efforts to support businesses and people through banking operations and direct social security programs, contributing to stabilizing life, production and business activities. The bank planned to use VND3,500 -4,500 billion in 2020 to support customers to overcome the Covid-19.