Viet Capital Bank (BVBank - stock code BVB) has just announced its financial report for the third quarter of 2023.
Safe asset structure
During the period when the financial market and banking industry faced many challenges, BVBank maintained a safe asset structure strategy. The bank focused on lending to the agricultural , rural areas and SME customers.
At 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 plan of VND 86,600 billion set for 2023, the bank has completed 97% of the annual plan.
Currently, in parallel with capital mobilization development, BVBank continues to simultaneously implement many credit promotion programs. The last quarter of the year is usually the time when demand for loans is high to serve production and business at the end of the year and the beginning of the following year, so the bank has actively mobilized capital to prepare for the biggest season of the year.
According to the report, by the end of the third quarter of 2023, BVBank had achieved a total capital mobilization balance of nearly VND 76,400 billion, an increase of 8.4% over the same period, of which capital mobilization from economic organizations and residents reached more than VND 64 trillion, an increase of 17% over the same period. Outstanding credit balance reached more than VND 53 trillion, an increase of 4.3% over the beginning of the year - of which outstanding credit balance is outstanding loans to corporate and individual customers, without 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 to utilize digital capabilities, shifting the lending structure to individual customers in a retail banking orientation to reduce portfolio risk.
According to research, at the end of the third quarter of 2023, BVBank's individual customer segment accounted for 67% of the bank's total outstanding loans.
At the end of the third quarter of 2023, BVBank recorded total assets of approximately VND 84,300 billion.
In the first 9 months of 2023, implementing the direction of the Government & State Bank, Ho Chi Minh City People's Committee, BVBank has implemented support solutions to share difficulties with people and businesses. The bank is also implementing a preferential package to reduce interest rates for additional loans (from 0.5% - 2%) for production and business activities (scale of 4,000 billion), a special loan interest rate package for individual customers with a scale of more than 1,500 billion and currently a preferential loan interest rate package of only 6% - 7% / year... In addition to reducing interest rates, this bank has also reduced/waived fees for payment, money transfer, and other credit services for businesses. These are specific, practical solutions and create conditions to reduce difficulties for customers in the current period.
The big picture
In the general picture of commercial banks, although the capital mobilization interest rate has decreased significantly, the burden of capital mobilization costs at high interest rates from the end of the third quarter of 2022 is still large (capital mobilization costs increased by 54% compared to the same period in 2022). Meanwhile, low credit growth at the lending interest rate level has decreased sharply by 2% - 3%; credit quality has declined due to the general difficulties of the real estate market and the economy, which has had a great impact on the income and risk provisions of the Bank.
In the third quarter alone, BVBank's total net interest income reached nearly VND460 billion, an increase compared to the second quarter, and pre-tax profit was VND22 billion, higher than the second quarter. Profit for the first 9 months of the year reached VND61 billion.
According to BVBank's leaders, since the end of the third quarter, the economy has shown certain signs of recovery, customer activities have improved, thereby creating a premise to expect to promote the bank's business activities in the last months of the year, especially lending and debt collection of the Bank in the remaining time of 2023.
Huong Anh
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