Scale Growth Driven by Retail Customers
BVBank reported total assets of nearly VND 84,000 billion in the first three months of the year, a 7% increase year-on-year thanks to the strong contribution from the retail customer segment, which is the bank’s main strategic segment.
As of March 31, 2024, the bank’s total outstanding credit reached nearly VND 66,500 billion, an increase of 10% compared to the same period last year. Notably, the main growth driver came from lending to individuals and economic organizations, with outstanding loans reaching over VND 57,000 billion, a 6.7% growth year-on-year. Due to the low absorption of capital in the economy compared to the end of 2023, outstanding loans slightly decreased by 1.2%, with outstanding loans decreasing in January and increasing rapidly in the last two months of the quarter.
BVBank’s lending interest rates have been continuously decreasing in the first three months of this year as the bank has been implementing numerous solutions to support and address customers’ difficulties. For instance, right from the beginning of the year, the bank has rolled out a preferential loan package with interest rates starting at only 5%/year for various purposes for retail customers.
Prioritizing growth alongside safety and sustainability, BVBank’s balance sheet is unaffected by corporate bonds. This measure helps protect the bank’s capital and ensures that business operations are carried out in a stable and sustainable manner.
In terms of liquidity, total deposits increased by 6.4% compared to the first quarter of 2023, ensuring sufficient resources to supply the market with necessary capital and preparing for a potential recovery in loan demand, even though the bank has been continuously adjusting deposit interest rates downward. The main contribution to the portfolio came from deposits from economic organizations and individuals, accounting for nearly 90% of total liabilities, with a 9% growth year-on-year to reach nearly VND 67,700 billion.
Strong Growth in Core Business Activities
BVBank achieved remarkable results in the first quarter, with total revenue exceeding VND 530 billion, a 48% surge year-on-year, of which revenue from core business activities grew by 65% year-on-year to VND 472 billion.
Furthermore, in the total revenue structure, interest from foreign exchange trading increased by 76% due to a 1.5-fold increase in foreign exchange trading volume in the first quarter of 2024 compared to the same period last year. Net income from service activities slightly decreased due in part to the impact of linked insurance.
Meanwhile, operating expenses in the first three months of the year increased by 21% to VND 357 billion as the bank invested heavily in expanding its network, rebranding, and continuing to promote digital transformation. To increase customer service points in line with its overall strategy, BVBank accelerated the expansion of its number of business locations by 4 more in the past quarter, bringing the total number of business locations across the system to 120 and extending its presence to 33 provinces and cities nationwide. Along with traditional channels, BVBank continues to enhance customer experience through various new features on its digital banking platforms, Digimi and Digibiz, in line with its strategic objective of developing a retail model.
Thanks to the strong growth in revenue from core business activities, in the first three months of the year, BVBank fulfilled 35% of its annual profit plan, with pre-tax profit reaching VND 69 billion.
