BIDV Shareholders' Meeting: No plan to participate in establishing a digital asset trading floor, leaving profit plan open

Q1/2025 profit slightly decreased, cautious with full-year profit target, no plan to participate in establishing a digital asset exchange

This year, BIDV plans to do business with a credit growth target within the limit assigned by the State Bank of Vietnam (SBV), expected at 16%.

Capital mobilization is managed in accordance with capital use. Pre-tax profit will be subject to approval by competent state agencies, while bad debt is controlled below 1.4%.

The bank said that indicators without detailed data will be updated by BIDV based on approval from competent State agencies.

In the discussion, answering shareholders' questions about the first quarter 2025 profit results, BIDV General Director Le Ngoc Lam said that by the end of the first quarter 2025, BIDV's credit growth was 2.6%, capital mobilization growth was 1.17%. Profit was estimated at VND7,019 billion in the first quarter, down 1.5% compared to the same period last year while bad debt increased slightly to 1.65%.

Explaining the reason for not giving a specific profit target, Mr. Phan Duc Tu, Chairman of BIDV's Board of Directors, said that the global trade war is very complicated, the 90-day tax deferral period has not ended and BIDV is waiting for the negotiation results to come up with a specific scenario.

According to BIDV's review, the total outstanding debt of BIDV's customer group affected by the tariff impact is about VND300,000 billion, accounting for 15% of the bank's outstanding debt. The group of customers that are greatly affected include steel, plastic, plastic, mechanical, seafood, footwear, garment, logistics, industrial park real estate, etc. This outstanding debt includes both direct exporting enterprises and processing and supporting enterprises, industrial parks, etc. that are indirectly affected.

According to the quantification of BIDV's Board Chairman, there are 5 impacts when the US increases the reciprocal tax: credit is narrowed; capital mobilization is reduced (especially deposit mobilization of FDI enterprises); demand for services of the business sector is reduced (due to reduced import and export activities); asset quality is reduced; risk provisioning costs are increased. All of these factors will negatively affect the bank's profit growth.

This year, BIDV continues to plan to set aside VND21,000 billion in risk provisions. This is the same level as in 2024 while credit growth is expected to increase by about 16%, meaning that the bad debt coverage ratio will decrease.

In response to a shareholder's question about the merger of two branches in Binh Duong and Ca Mau, BIDV's Chairman said that, up to now, BIDV has only merged two branches out of a total of 300 branches, which is not many. However, arranging a business model with a bank is a regular task, never constant, including location and business network. Currently, there are many factors such as: digitalization trend, labor productivity, cost reduction requirements, increased management efficiency... that make the adjustment towards increasing modern, digital models instead of widespread distribution channels as present will happen faster.

A shareholder asked about the information that BIDV is participating in establishing a digital asset trading floor (the draft is being developed by the Ministry of Finance - PV), BIDV's leader said that, as a domestic commercial bank, BIDV will actively participate with ministries and branches to implement. However, the establishment of a BIDV digital asset trading floor will be "reserved" for the private enterprise sector.

"BIDV has no plans to establish a company to deploy this exchange, because it requires a large amount of capital, not to mention technology and other factors. However, BIDV will participate in the market as a bank, serving payment and related operations," BIDV leaders affirmed.

Dividend 30.8% to increase capital

BIDV's shareholders' meeting today approved a plan to increase charter capital by VND21,656 billion, to nearly VND91,870 billion (equivalent to an increase of 30.8%) through 3 options: increasing capital from the reserve fund to supplement charter capital, paying dividends and issuing additional shares.

Regarding the plan to issue shares to increase capital from the reserve fund to supplement charter capital, BIDV will issue a maximum of more than 498,516,696 shares (equivalent to 7.1% of outstanding shares as of March 31).

With the plan to issue shares to pay dividends from undistributed accumulated profits in 2023, BIDV plans to issue a maximum of nearly 1,397,251,021 shares (equivalent to 19.9% of outstanding shares as of March 31).

Finally, there is the option of issuing additional shares to investors through private offering or public offering with a maximum quantity of 269,846,330 million shares (equivalent to 3.84% of outstanding shares as of March 31).

The subjects of private offering of shares are investors who meet the criteria of being professional securities investors and are domestic and foreign organizations with financial potential, which may include one or several existing shareholders of BIDV.

The General Meeting of Shareholders authorizes the Board of Directors to specifically decide on professional securities investors meeting the requirements and the number of shares offered to each investor.

In principle, the price of privately offered shares must not be lower than the market price at the time or the value recorded in the books of the shares at the most recent time.

Privately offered shares will be subject to a 3-year transfer restriction for strategic investors and 1 year for professional investors.

The implementation time of all three above options is expected in 2025 - 2026. The General Meeting of Shareholders authorizes the Board of Directors to decide the specific issuance time after receiving approval from state agencies.

The increased charter capital is expected to be used entirely to supplement business capital and allocated to BIDV's business operations.

Source: https://baodautu.vn/dhdcd-bidv-khong-co-ke-hoach-tham-gia-lap-san-giao-dich-tai-san-so-de-ngo-ke-hoach-loi-nhuan-d273568.html