Press Release No.10/2017: BIDV holds annual shareholders meeting 2017

Press Release No.10/2017: BIDV holds annual shareholders meeting 2017 | 24/04/2017

On 22 April BIDV held its Annual General Meeting of Shareholders 2017. The meeting approved important proposals and set out plans for future operations.

With strong determination and consensus, BIDV's Board of Directors has rendered great efforts to direct the operation of the BIDV system to accomplish the objectives set out in the Resolution of the Annual General Meeting of Shareholders and complete the bank's restructuring plan.

BIDV continues to affirm its position as the largest commercial bank in Vietnam. The bank's total assets as of 31 December 2016 reached VND1,006,404 billion, up 18.3 percent against 2015, 2.08 times higher than 2012, an annual average growth rate of 20 percent and accounting for 14 percent of the banking sector's total assets. Deposits as of 31 December 2016 reached VND940,020 billion, of which deposits from organisations and individuals reached VND797,689 billion, an increase of 21.1 percent compared to 2015, 2.27 times higher than 2012, and an annual average growth rate of nearly 22.7 percent. The deposit market share was 12.2 percent, up 3.9 percent over the past five years. Outstanding loans as of 31 December 2016 reached VND723,697 billion, 2.13 times higher than 2012, an annual average growth rate of 20.79 percent, and higher than the banking sector's average growth rate of 13.1 percent. Credit market share reached 13.2 percent, up 2.8 percent over the past five years. Profit before tax reached VND7,709 billion, up 3.2 percent compared to 2015, and an annual average growth of 15.5 percent. Credit quality was strictly controlled and the bad debt ratio remained low and always lower than the maximum bad debt rate set by the General Meeting of Shareholders.

BIDV's distribution network and customer base are constantly expanding while its service quality is improving and customer trust and satisfaction have increased. The bank has a network of 191 branches and nearly 1,000 transaction offices, 15 affiliated companies and joint ventures, six representative offices abroad and over 24,000 officers and employees. BIDV has established close relationships with nearly 300,000 corporates; nearly 9 million individual customers which accounts for about 10 percent of Vietnam's population; and more than 2,300 major financial institutions in 117 countries and territories around the world.

In 2016 BIDV received recognition both at home and abroad. Brand Finance rated BIDV as the most valuable bank brand in Vietnam, ranking 26among ASEAN banks, and 401globally, up 12 places from 2016. Forbes Magazine voted BIDV among Top 2000 world's biggest and most powerful listed companies. The Asian Banker Magazine awarded BIDV with 'Best Retail Bank in Vietnam' for three consecutive years from 2015 to 2017 and 'Best Mortgage Product in Vietnam' for 2016 and 2017. BIDV was the only bank in Vietnam to be honoured as 'Outstanding Retail Bank 2016' at the Vietnam Retail Banking Forum 2016. The bank also won many awards in areas such as cards, currency trading, and information technology, amongst others.

BIDV shares are the most liquid compared to other state-owned joint stock banks, with an average of 1.4 million shares traded per session in 2016, higher than the average of 778,000 shares per session.

The business operations of member companies, joint ventures, and commercial presences were well maintained, contributing to BIDV's overall performance. BIDV Securities Joint Stock Company (BSC) earned pre-tax profit of VND125 billion, surpassing the set target; and BIDV Insurance Corporation (BIC) reached profit before tax of VND169 billion. BIDV Financial Leasing Company (BLC) changed its operating model into BIDV - SuMi Trust Leasing Company - a joint venture between BIDV and Sumitomo Mitsui Trust Bank. BIDV MetLife Life Insurance Limited Liability Company achieved an increase of 2.5 times in premiums compared to the previous year.

At the meeting, shareholders unanimously voted 10 members to the Board of Directors for the 2017-2022 tenure. The Board of Directors held its first meeting and agreed to elect Mr. Tran Anh Tuan as member in charge of the board and Mr. Phan Duc Tu to assume the position of chief executive officer. The General Meeting of Shareholders also agreed to elect the Supervisory Board for the term 2017-2022 consisting of three members. Ms. Vo Bich Ha was voted in for the position of head of supervisory board.

Forecasting macroeconomic difficulties and challenges and based on the government's policy of economic restructuring and the guidance of the State Bank of Vietnam on the implementation of the restructuring of credit institutions - phase 2, BIDV's Board of Directors identified the focus of the period 2017-2022 as follows: institutional improvement; strategic planning; improving financial capacity; finalising the organisational model, screening and developing high quality human resources; consolidating and improving the efficiency of the operating network; deploying core IT projects; developing retail business; improving the performance of commercial presences in foreign countries; reforming administrative procedures, improving competitiveness; brand development, social security; strengthening the inspection, supervision and internal audit work; and implementing risk management, ready to apply Basel standards in accordance with the regulations of the State Bank of Vietnam in 2018.

The BIDV management team also sets targets and tasks for 2017: deposit growth of 16.5 percent; outstanding credit growth ≤16 percent; profit before tax of VND7,750 billion; bad debt ratio <3 percent; Dividend payout ratio of 7 percent and not lower than 12-month tenor savings denominated in VND; focusing on strengthening financial capacity and taking measures to increase charter capital; safe, sustainable, and effective credit growth, ensuring the harmonisation of 'safety - efficiency - scale'; increasing revenue and cutting costs to increase income; making breakthroughs in retail business, focusing on increasing service income; and improving the efficiency of traditional and modern business networks.

Additional information

As of 31 March 2017, BIDV's total assets reached over VND1,026 trillion, an increase of 1.98 percent year-to-date. Loans to customers reached over VND746,941 billion, up 4.66 percent year-to-date, of which outstanding retail loans grew by 4.3 percent year-to-date. Total credit and investment reached nearly VND980,000 billion, up 3 percent over the previous year. Deposits from customers reached over VND762,402 billion, up 5 percent. Total operating income reached VND7,886 billion, up 17.6 percent over the same period last year. Profit before tax was VND2,277 billion, up 9.6 percent year-on-year, reaching 29.3 percent of the 2017 plan.

For more information, please contact:
Bank for Investment and Development of Vietnam JSC (BIDV)
Hotline: [phone]; Website:www.bidv.com.vn

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