BVBank credit growth of nearly 14% in 2023

Capital mobilization and outstanding loans grew well compared to the same period.

As of December 31, 2023, BVBank's total assets reached nearly VND 88,000 billion, an increase of 11% compared to the end of 2022, exceeding the plan of VND 86,600 billion. Total mobilization increased by nearly 10%, reaching VND 79,700 billion, of which the scale of capital mobilization from individual customers and economic organizations reached nearly VND 67,200 billion, an increase of 13% over the same period last year.

Outstanding credit balance as of December 31, 2023 reached nearly VND 58,000 billion, an increase of nearly 14% over the same period. In 2023, BVBank initially successfully shifted to the personal loan segment. If in the period 2019-2022, the average proportion of personal loans accounted for only 54% of total outstanding loans, by 2023, this figure had reached 70%.

BVBank tăng trưởng tín dụng gần 14% năm 2023- Ảnh 1.

Success from retail banking model and quick recovery help Q4 earnings bounce back

BVBank demonstrated its ability to recover quickly in the last quarter of the year, with total revenue in the fourth quarter accelerating again compared to the first three quarters of the year. In the fourth quarter alone, BVBank's total revenue reached VND513 billion, up 22% year-on-year and up 12% compared to the third quarter. At the end of the year, the bank recorded total revenue of VND1,755 billion, down slightly by 8% compared to 2022.

The slight decrease in total income mainly came from the general situation. In the face of many difficulties in the business situation of individual and corporate customers, along with BVBank implementing the State Bank's policy of sharing difficulties with customers through promoting preferential interest rates and implementing interest reduction measures, net interest income was affected. Accordingly, in 2023, net interest income reached nearly VND 1,500 billion, down 14% compared to the previous year. However, pioneering the introduction of preferential loan packages has helped BVBank quickly increase customer scale, when the total number of customers has doubled compared to 2021. As a result, in the fourth quarter of 2023, net interest income accelerated again, reaching VND 428 billion, up 10% over the same period and up 8% compared to the third quarter, becoming the basis for the bank to be confident about its business recovery results in 2024.

Regarding non-interest income, at the end of the year, net profit from service activities reached VND54 billion, down 48% compared to 2022 due to the impact of revenue from linked insurance. Revenue from foreign exchange trading reached VND22 billion, down 48% mainly due to the market context.

In 2023, the bank earned VND122 billion in profit thanks to a nearly doubling in bond sales. In addition, revenue from other business activities also improved, reaching VND78 billion, up 28% compared to 2022.

BVBank tăng trưởng tín dụng gần 14% năm 2023- Ảnh 2.

Operating expenses in 2023 increased by 14% to VND 1,407 billion, in the fourth quarter alone, operating expenses increased by 28%. This increase was mainly due to investment costs in network expansion with the number of business units increasing by nearly 50% compared to the previous 5 years to increase presence in the areas to promote retail business. In addition, in 2023, BVBank marked a turning point by changing its brand identity in 31 provinces and cities and in parallel with increasing investment in digital transformation, increasing customer experience through digital banking Digimi, launching digital banking for businesses Digibiz with a series of new features, causing costs to increase.

In order to ensure credit quality, BVBank increased provisioning in the last quarter of the year, with credit risk provisioning expenses reaching VND 135 billion, up 34% over the same period. Accumulated for the whole year, credit risk provisioning expenses were nearly VND 280 billion, up 23% compared to 2022. By the end of 2023, pre-tax profit reached nearly VND 72 billion, down 84% compared to 2022.

In the context of a challenging economy and high competition in banking activities, BVBank is considered one of the banks with stable operations. The orientation of "prudence and selective growth", while accepting to sacrifice profits to accompany customers and build sustainable development in the future is expected to bring long-term value on the path to becoming a "customer-oriented" retail bank of BVBank.

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