How are Agribank, BIDV, VietinBank and Vietcombank investing outside their industries and abroad?

By the end of 2024, state-owned commercial banks (BIDV, VietinBank, BIDV, Vietcombank) had invested thousands of billions of VND abroad and in non-industry investments.

According to the report, most of the capital investments of banks in the Big 4 group have been effective but are still being restructured.

The Government has just sent a report to the National Assembly on investment, management and use of state capital in enterprises in 2024.

In the group of state-owned commercial banks, the report shows that most of the capital investments of banks in this big 4 group are effective but are still being restructured.

Vietinbank : VietinBank Germany's profit increased by 34%, VietinBank Laos transferred 1 million USD in profit back to the country

The report shows that at VietinBank, domestic investment capital at the end of 2024 is 4,844 billion VND. This is the total balance of capital contribution and share purchase in subsidiaries, associates, and other domestic capital recipients of VietinBank at: 7 subsidiaries with a total investment value of 2,756 billion VND (accounting for 56.8% of the total portfolio value), 1 50/50 joint venture bank with an investment value of 1,689 billion VND (accounting for 34.8%), 2 other long-term investments with a total value of 23 billion VND, equivalent to 0.5% of the total portfolio value.

In addition, VietinBank also owns 2 ready-to-sell securities (PHP and SGP received from the debt settlement plan) with a total value of VND 376 billion (equivalent to 7.8% of the total portfolio value).

Regarding foreign investment, VietinBank has 1 foreign subsidiary, Vietnam Joint Stock Commercial Bank for Industry and Trade in Laos (VietinBank Laos), and 1 foreign branch, VietinBank in Germany.

According to the data recorded in the financial report of VietinBank Laos as of December 31, 2024, the charter capital of VietinBank Laos is 615.5 billion LAK (62 million USD). In November 2024, VietinBank Laos transferred 95% of its 2023 profits back to the country, equivalent to 1.02 million USD.

VietinBank's German branch has total assets of 236 million EUR at the end of 2024, an increase of 19% compared to the same period in 2023; Total operating income reached 10.18 million EUR, an increase of 7% compared to the same period in 2023; Profit (before tax) in 2024 is 1,548 million EUR, an increase of 34% compared to the same period in 2023 (the result of the same period in 2023 is 1,158 million EUR).

BIDV : Contributed domestic investment capital of 8,100 billion VND; has 3 investment projects abroad

At BIDV, the total capital that this bank directly invested and contributed by the end of 2024 is 8,100 billion VND.

BIDV contributed capital to 7 subsidiaries, 3 joint ventures, 1 associate and 8 other long-term investments. The total value of BIDV's capital contribution portfolio is VND 8,100 billion, a decrease of VND 33 billion compared to December 31, 2023.

Of which, capital contribution at subsidiaries is VND 5,699.5 billion (unchanged compared to 2023). Capital contribution at associated companies is VND 2,265.35 billion (unchanged compared to 2023). Capital contribution at other investments is VND 135.35 billion (decreased by VND 33 billion compared to 2023).

In 2024, BIDV completed divestment at Mekong Real Estate and Construction Joint Stock Company.

Regarding foreign investment, BIDV currently has 3 projects, including: Lao-Vietnam Joint Venture Bank (LVB) in Lao PDR, BIDV - Yangon Branch in Myanmar and Bank for Investment and Development of Cambodia (BIDC) in Cambodia.

Vietcombank: 5 non-industry investments
According to the Government's report, the total investment capital value of Vietcombank in 2024 is VND 6,680.97 billion, accounting for 9.56% of charter capital and the Charter Capital Supplement Reserve Fund, ensuring compliance with legal regulations on capital contribution limits for share purchase (<40% of charter capital and VCB's Charter Capital Supplement Reserve Fund).

Total income from investment activities in 2024 is VND 366.07 billion; of which, income from cash dividends is VND 310.17 billion; income from stock dividends is VND 55.16 billion; income from divestment is VND 0.75 billion.

VCB has 5 non-core investments. Of which, with the investment in Vietcombank Bonday Benthanh Joint Venture Company Limited (VBB), VCB is awaiting approval from the State Bank to continue implementing the work related to the acquisition of capital contributions from partners in VBB Company, moving towards converting VBB Company into a one-member LLC.

Regarding the investment in Vietcombank 198 Building Company Limited (VCBT): the bank is currently in the process of implementing the plan to acquire the 198 Tran Quang Khai Building but is facing some legal issues. Vietcombank said it will develop a suitable plan to handle the investment in VCBT and report to the State Bank for guidance in the near future.
With Vietcombank Bonday Joint Venture Company Limited (VCBB), since the joint venture term will end in 2026, the State Bank of Vietnam has approved VCB's proposal to maintain this investment until the end of the joint venture term. After the end of the joint venture term, VCB will negotiate with the Vietnamese partner to buy back the entire building to serve as VCB's branch headquarters or consider reselling VCB's capital.
Two other investments looking for divestment opportunities are in Vietnam Airlines Corporation (VNA) and Vietnam Infrastructure Development and Finance Investment Corporation (VIDIFI).

Specifically, Vietcombank is continuing to monitor the market situation as well as VNA's operations to divest the remaining VNA shares when appropriate, ensuring the principle of optimizing shareholder benefits and in accordance with the provisions of law.

The investment in VIDIFI is also made in accordance with the Prime Minister's instructions to fulfill political tasks. Vietcombank is continuing to monitor VIDIFI's operations and looking for opportunities to divest when appropriate.

Agribank: All investments are effective

At Agribank, the Government's report shows that in 2024, this bank received 1.2 billion VND in 2023 profit from AMC; expected to receive profits and dividends in 2023 from companies with investment capital, including: 12.33 billion VND in ASC profit; 112.96 billion VND in Agriseco dividends; 37.7 billion VND in ABIC dividends; 2023 dividends from Vietnam National Payment Corporation (Napas).

Regarding the situation of capital investment abroad: Agribank Cambodia Branch operates stably, preserves investment capital, does not violate the laws of the host country, and makes profits after fulfilling financial obligations to Cambodia. Agribank Cambodia Branch's pre-tax profit in 2024 is 1,253 thousand USD, and its after-tax profit is 934 thousand USD.

By the end of 2024, the big 4 banks have total liabilities and equity (total capital) reaching nearly 9.5 million billion VND, an increase of 15% compared to the end of 2023; total outstanding loans to customers are nearly 7 million billion VND; bad debt is only 1.23% (in 2023 it is 1.3%).

Regarding business results, in 2024, the total revenue of the Big 4 banking group is VND 628,946 billion, down 5% compared to 2023, but thanks to cost reduction, pre-tax profit will reach VND 133,560 billion, up 12% compared to 2023.

Effective operations help the State investment capital at these banks continue to be preserved and generate profits. Equity reached VND 613,693 billion, up 19% compared to the end of 2023; of which, charter capital reached VND 230,205 billion, up 11% compared to the end of 2023; undistributed profits reached VND 220,321 billion, up 35% compared to the end of 2023.

Source: https://baodautu.vn/agribank-bidv-vietinbank-va-vietcombank-dang-dau-tu-ngoai-nganh-va-dau-tu-ra-nuoc-ngoai-ra-sao-d412436.html