BVBank makes HSX debut as Vietnam's banking sector eyes growth

BVBank makes HSX debut as Vietnam's banking sector eyes growth

BVBank is set to officially begin trading on the Ho Chi Minh Stock Exchange (HSX) at a reference price of VND13,300 (around $0.52) per share.

The listing takes place on July 21, with 641 million outstanding shares giving the bank an estimated market capitalisation of $333.3 million. Deputy general director Nguyen Hoang Son said the transition from the Unlisted Public Company Market to the Ho Chi Minh Stock Exchange (HSX) represents a strategic milestone for the lender.

“HSX is not just a destination, it is a platform for BVBank to enter a new growth cycle,” Son said. “After years of preparation, this strategic move enhances our transparency and risk management standards, opening up opportunities to better access both domestic and overseas institutional investors.”

BVBank’s deputy general director Nguyen Hoang Son (middle) at a Vietcap webinar on July 16

Regarding business strategy, BVBank focuses on retail customers, small- and medium-sized enterprises (SMEs), micro-SMEs, and business households. These segments account for 95 per cent of the bank’s total outstanding credit, while large enterprises make up only 5 per cent.

BVBank operates 126 branches and transaction offices across Vietnam, targeting the growing middle-class and youth population. Currently, 89 per cent of the bank’s new customers are acquired through digital channels, with no further plans for physical branch expansion.

BVBank’s collaboration with the digital banking platform Timo contributed over one-third of its current three million customers.

During the first half of this year, BVBank’s pre-tax profit reached $20 million, completing 50 per cent of the revised $40 million year-end target. The bank's credit balance approximated $3.4 billion, representing an 8.3 per cent increase year-to-date, while capital mobilisation climbed 8.9 per cent to $3.72 billion.

Total assets reached $5.68 billion, up 43 per cent year-to-date and fulfilling 95 per cent of the full-year target. Net interest margin (NIM) remained stable at 2.6 per cent. The cost-to-income ratio dropped from 59 per cent at the end of 2025 to 51 per cent by June this year.

For the next five years, BVBank targets 30–40 per cent pre-tax earnings growth and 18 per cent credit growth.

The management seeks to increase the bank’s charter capital to $800 million by 2028. The State Bank of Vietnam approved a plan for BVBank to increase its charter capital by $140 million on July 9 through a 2:1 rights issue to existing shareholders and an employee stock ownership plan, raising its total charter capital to nearly $400 million.

BVBank currently has over 18,000 shareholders, with domestic shareholders accounting for 99.96 per cent. The board of directors and the management team hold an 11 per cent stake.

The foreign ownership limit at BVBank is currently capped at 5 per cent. Management plans to utilise this room for overseas strategic investors and might expand depending on market conditions.

According to Vietcap Securities, the primary investment risks of BVBank are standard financial sector risks, including credit cycle, asset quality risk, and NIM compression risk from high competitive pressures within the banking sector.

Regardless, Vietcap analysts also noted that many large banks are focusing their lending on major public infrastructure projects, leaving room in the SME and retail segments for BVBank to expand market share.

On July 17, BVBank share price closed at a little over $0.53, remaining unchanged from the start of the year. The current trailing 12-month price-to-book ratio stands at 1.1x and the price-to-earnings ratio stands at 16.2x. No cash dividends have been paid for the past few years as management prioritises capital for growth.

VIR