Good year behind BIDV
Good year behind BIDV
Hanoi-based BIDV announced positive financial results for the first nine months up to September and a 2015 dividend payout ratio of 8.5 per cent.
Accordingly, Vietnam’s largest lender in terms of assets, BIDV, posted a total asset value of VND956 trillion ($43.65 billion) as of September 30, an increase of 11.5 per cent compared to the start of the year and 21.6 per cent compared to the same period last year.
Credit growth, likewise, bolstered up 14.2 per cent over nine months, with the total credit and investment volume reaching over VND912 trillion ($41.64 billion) at the end of September. Total outstanding credit added up to VND698 trillion ($31.87 billion), an up of 12.7 per cent compared to the beginning of the year. The bank’s bad debts ratio was recorded at 1.72 per cent.
Total deposits, meanwhile, hit VND887 trillion ($40.5 billion), of which VND754 trillion ($34.42 billion) came from individuals and corporates, an increase of 14.2 per cent compared to the start of the year.
The lender focused on its retail banking operations, boosting credit growth by 19 per cent compared to the start of the year, accounting for 24 per cent of the total outstanding debts.
BIDV also received a net income of VND2.685 trillion ($121.36 million) from services for the period ending on September 30, a rise of 13.3 per cent compared to the same period in 2015.
The lender had a post-tax profit of VND5.623 trillion ($256.75 million), climbing some 6.9 per cent compared to same time last year, achieving 71 per cent of the 2016 target.
According to BIDV, it will be able to reach most of its targets set for the year, based on the strong performance and stable growth in each indicator so far.
In the past month, BIDV’s ticker (HOSE: BID) swelled up some 12 per cent, from VND15,800 ($0.71) to VND17,700 ($0.80) a unit on the closing session of October 19.
During its extraordinary general meeting held on October 22, the lender also revealed its 2015 dividend payout ratio of 8.5 per cent, to be paid in cash on November 21.
Earlier on in June, the Ministry of Finance (MoF) requested the State Bank of Vietnam’s backing to collect the cash dividends due from BIDV and VietinBank, as part of an effort to fill up the state coffers.
Vietinbank announced in April that it would not pay dividend for the 2014-2015 financial year, and retained the entire accumulated profit volume of roughly VND3.66 trillion ($167.12 million) to enhance the bank’s equity and financial capacity.
BIDV, on the other hand, slashed its proposed 9 per cent dividend payout ratio for 2015 to 8.5 per cent, and meant to pay in the form of additional share issuance instead of cash.
Given the 8.5 per cent dividend payout ratio, BIDV would be likely paying the MoF some VND2.7 trillion ($123.28 million) in cash dividend.
