On April 29, 2022, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) held the 2022 Annual General Meeting of Shareholders (AGM) in Hanoi. The Assembly approved many important items such as: Report summarizing the activities of the Board of Directors in the period 2017-2021, with orientations for 2022-2027, with a focus on 2022; 2021 Business Results Report, Plan for 2022; Report on the performance of the Supervisory Board in 2021 with a focus on 2022; Election of the members of the Management Board and the Supervisory Board of BIDV for the term of office 2022-2027…
Stable growth in total assets
The AGM approved the report for the 2017-2022 term of office of the BIDV Board. During the tenure, the Board of Directors of BIDV managed the entire system to comprehensively and synchronously meet the objectives of the annual business plan set by the general meeting of shareholders, and successfully implemented the restructuring plan related to the settlement of bad debts in the 2016 period. 2020
BIDV’s total assets have grown steadily over the years, reaching VND 1,761,696 billion as of December 31, 2021, 1.75 times the value as of December 31, 2016, representing an average growth of 11.85% per year . Period 2017-2021, is the stock trading bank with the largest total assets in Vietnam.
The mobilization of capital fully meets the requirements of capital use and ensures the safety of system liquidity. As of December 31, 2021, the total mobilized capital reached VND1,641,777 billion, 1.75 times that of December 31, 2016; in which the capital mobilization of organizations and individuals reached VND1,509,483 billion, 1.89 times higher, an average growth of 13.61%/year in the period 2017-2021, accounting for an average share of 11% in the global market share of Deposits equivalent. Branch.
The credit balance has grown quite well, respecting the credit limit assigned by the State Bank and focusing on manufacturing areas, priority areas according to government policy, State Bank management and BIDV direction. As of December 31, 2021, the total outstanding credit and investment loans reached VND1,677.310 billion, 1.76 times higher than December 31, 2016; The credit balance of business organizations and residents reached VND1,368,029 billion, 1.82 times higher, an average growth of 12.73%/year for 5 years, accounting for over 13% of the credit market share of the entire industry. , market leader in terms of credit market share.
Credit quality is strictly controlled. The bad debt rate was 0.82% as of December 31, 2021 and was controlled according to the targets set by the State Bank and the AGM; Mandatory annual loan loss provisions where 100% of DPRR for structured credit balance is fully deducted in 2021 as per SBV Circular 03/01/14, 2 years earlier than required by SBV; The bad debt coverage rate for commercial banks alone reached 235% as of December 31, 2021.
The difference in consolidated revenue and expenditure in 2017-2021 will grow at an average rate of 20.5%/year, reaching Dong 43,029 billion in 2021, 2.54 times higher than 2016. The growth of consolidated pre-tax profit is average 11.9%/year 2021, it will reach VND13,548 billion, an increase of 50.1% compared to 2020 and 1.76 times higher than 2016; By fully and timely fulfilling the obligations to the state budget, more than VND 28 trillion will be paid in the period 2017-2021 (it will be VND 5,169 billion in 2021).
State capital in BIDV has been preserved and developed, reaching VND 69,918 billion as of December 31, 2021, an increase of 66.4% compared to December 31, 2016. From 2017 to 2021, BIDV will pay cash dividends to shareholders with a total value of more than VND11,200 billion; The market capitalization of BIDV in 2021 will reach VND187.2 trillion (US$8.14 billion), ranking sixth in the Vietnam Stock Exchange.
During 2017-2021, the Board led the implementation of capital raising measures with important results: In 2019, shares were successfully issued to strategic partner Hana Bank, increasing the initial capital of BIDV from VND 34,187 billion to VND 40,220 billion; In 2021, the capital increase through stock dividend will bring the founding capital of BIDV to VND 50,585 billion.
Election of the board for the term of office 2022-2027
The Assembly elected the Board of Directors of BIDV for the 2022-2027 term, including 10 members: Mr. Phan Duc Tu, Mr. Le Ngoc Lam, Ms. Nguyen Thi Thu Huong, Mr. Tran Xuan Hoang, Ms. Phan Thi Chinh, Mr. Dr. Ngo Van Dung, Mr. Pham Quang Tung, Mr. Le Kim Hoa, Mr. Yoo Je Bong (Representative of Hana Bank), Mr. Nguyen Van Thanh (Independent Director). The Assembly also elected a Board of Directors consisting of 03 members: Ms. Vo Bich Ha, Mr. Cao Cu Tri, Ms. Nguyen Thi Thu Ha.
At the first meeting of the Board of Directors of BIDV for the 2022-2027 term, the Board agreed to elect Mr. Phan Duc Tu as Chairman of the Board of BIDV for the 2022-2027 term and decided to appoint Mr. Phan Duc Tu. Period 2022-2027 continues to hold the position of Director General of the BIDV.
At the first meeting of the Board of Directors for the 2022-2027 term, the Board approved the election of Ms. Vo Bich Ha as Chair of the Board of Directors of BIDV for the 2022-2027 term.
Under the action motto “Discipline – Efficiency – Digital Transformation”, BIDV aims to complete the business plan in 2022 with key objectives such as: credit growth in compliance with SBV limits; mobilize capital in line with credit growth to ensure LDR ≤ 85% as required, 10% expected; Profit before tax of commercial banks alone reached VND20,000 billion, consolidated VND20,600 billion.
BIDV is also determined to guide the whole system with best effort and determination to accomplish the most important tasks in 2022, such as: active, creative; Further improve financial performance; Safe and effective credit growth; ensuring an appropriate structure of assets and liabilities; Promote the implementation of a comprehensive digital transformation; strengthening credit quality control; improving and promoting the operations of subsidiaries and affiliates; improving the quality of human resources; strengthening inspection, oversight, internal audit and warning work; Implement the BIDV brand identity change plan according to the roadmap, continue to perfect the corporate culture and practice…
|By the end of the first quarter of 2022, BIDV’s business results were very positive according to the set plan: total assets reached over VND1.85 billion, up 5% year-to-date; Outstanding loan balance reached 1.43 billion dong, up 4.7%; Capital mobilization reached VND1.53 million billion, up 1.3%; The NPL ratio according to Circular 11 is set at 0.8%; NPL ratio is over 277%; Pre-tax profit reached Dong 4,513 billion, up 33% over the same period.|