BIDV reports pre-tax profit of nearly 7,400 billion VND in the first quarter of 2024

Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV - HoSE: BID) has just announced its consolidated financial report for the first quarter of 2024 with net interest income reaching VND 13,541 billion, down 2.8% over the same period last year.

Non-interest income recorded positive growth with net profit from service activities reaching VND1,693 billion, up 11.6% over the same period last year. Net profit from foreign exchange trading activities reached VND1,567 billion, up nearly 2.2 times over the same period last year. Net profit from trading securities also increased 2.5 times over the same period to VND167 billion.

On the contrary, investment securities trading activities caused BIDV to lose VND291 billion, while in the same period last year, this segment only caused the bank to lose VND165 million. BIDV's net profit from other activities also decreased by 50% compared to the same period to VND500 billion. Income from capital contributions and share purchases of the bank also decreased by 13% to VND96 billion.

During the period, operating expenses increased by nearly 12% to nearly VND5,393 billion. As a result, BIDV's net profit from business activities decreased to VND11,778 billion, a decrease of 5.4% compared to the same period last year.

However, BIDV has cut its credit risk provisioning costs by 20.6% to VND4,389 billion, so as a result, BIDV reported pre-tax profit in the first quarter of 2024 reaching nearly VND7,390 billion, up 6.8%; corresponding after-tax profit reached nearly VND5,916 billion, up 6.4% over the same period in 2023.

At this time, March 31, 2023, BIDV's total assets were recorded at VND 2.33 million billion, an increase of 1.2% compared to 2023. Of which, customer loans reached VND 1.79 million billion, a slight increase of nearly 1% compared to the end of last year. Customer deposits at BIDV also increased by 1.8% to more than VND 1.73 million billion,

Regarding loan quality, by the end of March 2024, BIDV's total bad debt was VND 27,000 billion, an increase of 20.7% compared to the end of 2023. As a result, the ratio of bad debt/loan balance increased from 1.26% at the end of 2023 to 1.51%.

In a related development, BIDV's 2024 Annual General Meeting of Shareholders held on April 27 approved the plan to issue shares to increase charter capital from over VND57,004 billion to over VND70,624 billion. Of which, the number of shares expected to be issued is 1.36 billion shares, with a par value of VND10,000/share to increase capital.

Including nearly 1.2 billion shares issued to pay dividends in 2022 and nearly 164.9 million additional shares issued through private offering.

The source of money used to increase charter capital from the remaining profit in 2022 after setting aside funds is VND 11,970 billion and VND 1,648 billion from issuing additional shares in the form of private offering of shares, expected to be about 2.89% of charter capital as of December 31, 2023.

The private shares will be offered to professional securities investors and domestic and foreign institutional investors, which may include some existing shareholders of BIDV.

The offering price will be determined according to the market price principle. The number of shares offered for private sale will be restricted from transfer for 3 years for strategic investors and 1 year for professional securities investors from the date of completion of the offering, except in cases of transfer according to the judgment or decision of the Court ...

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