BVBank recorded total assets of approximately VND 84,300 billion.

Viet Capital Bank (BVBank - stock code BVB) has just announced its financial report for the third quarter of 2023.

Asset structure geared towards safety.

During a period when the financial market and banking industry faced numerous challenges, BVBank maintained a safe asset structure strategy. The bank focused on lending to the agricultural and rural sectors and SME customers.

As of the end of the third quarter of 2023, BVBank recorded total assets of approximately VND 84,300 billion, an increase of more than VND 5,000 billion compared to the end of 2022. Compared to the VND 86,600 billion target set for 2023, the bank has completed 97% of its annual plan.

Currently, alongside developing capital mobilization, BVBank continues to simultaneously implement many programs to promote credit. The last quarter of the year is usually when the demand for loans is high to serve production and business activities at the end of the year and the beginning of the following year; therefore, the bank has actively mobilized capital to prepare for this biggest season of the year.

According to the report, as of the end of Q3/2023, BVBank had achieved a total deposit balance of nearly VND 76,400 billion, an increase of 8.4% compared to the same period last year. Of this, deposits from economic organizations and individuals reached over VND 64,000 billion, an increase of 17% compared to the same period last year. Outstanding loans reached over VND 53,000 billion, an increase of 4.3% compared to the beginning of the year - this outstanding loan balance includes loans to corporate and individual customers, with no outstanding corporate bonds.

The individual customer segment accounts for 67% of the bank's total outstanding loans.

One of BVBank's key strategies is to promote digital transformation by leveraging digital capabilities and shifting its lending structure towards individual customers in line with its retail banking orientation to reduce portfolio risk.

According to our research, at the end of the third quarter of 2023, the individual customer segment of BVBank accounted for 67% of the bank's total outstanding loans.

Finance - Banking - At the end of Q3/2023, BVBank recorded total assets of approximately VND 84,300 billion. — As of the end of the third quarter of 2023, BVBank recorded total assets of approximately VND 84,300 billion.

In the first nine months of 2023, following the directives of the Government and the State Bank of Vietnam, and the People's Committee of Ho Chi Minh City, BVBank implemented support measures to share the difficulties faced by people and businesses. The bank is also implementing a preferential loan package with reduced interest rates (from 0.5%-2%) for supplementary capital for production and business activities (worth 4,000 billion VND), a special loan interest rate package for individual customers worth over 1,500 billion VND, and currently a preferential loan interest rate package of only 6% - 7% per year… In addition to reducing interest rates, the bank has also reduced/waived fees for various payment, money transfer, and other credit service fees for businesses. These are concrete and practical solutions that help alleviate difficulties for customers during this period.

The overall picture

In the overall picture of commercial banks, although deposit interest rates have decreased significantly, the burden of high funding costs from the end of Q3 2022 remains substantial (funding costs increased by 54% compared to the same period in 2022). Meanwhile, credit growth is low despite a sharp decrease in lending interest rates of 2% - 3%; credit quality has deteriorated due to the general difficulties in the real estate market and the economy, which has had a significant impact on the banks' income and risk provisions.

In the third quarter alone, BVBank's total net interest income reached nearly 460 billion VND, an increase compared to the second quarter, and pre-tax profit was 22 billion VND, higher than the second quarter. Profit for the first nine months of the year reached 61 billion VND.

According to BVBank's leadership, since the end of the third quarter, the economy has shown certain signs of recovery, and customer activity has improved, thereby creating a foundation to boost the bank's business in the remaining months of the year, especially lending and debt collection for the rest of 2023.

Huong Anh

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