The first year was delayed due to unfavorable market conditions.
Vietnam Joint Stock Commercial Bank for Industry and Trade (BVBank - UPCoM: BVB) was established in 1992, formerly known as Gia Dinh Bank. On May 26, 2023, the State Bank of Vietnam officially approved Vietnam Joint Stock Commercial Bank to change its English abbreviation from Viet Capital Bank to BVBank.
According to BVBank, the change of the abbreviated name is in line with the criteria of being short, easy to call, easy to remember, creating convenience for customers in calling the name when transacting with the bank.
After 32 years of development, BVBank's current charter capital is still only in the bottom group of banks. Specifically, at the end of the first quarter of 2024, BVBank's charter capital was nearly VND 5,017 billion, only higher than 5 other banks: VietBank, KienlongBank, BaoVietbank, SaigonBank and PGBank.
By 2024, BVBank plans to increase its charter capital to a maximum of VND5,518 billion by issuing nearly 69 million shares to existing shareholders at a ratio of 8:1 (shareholders own 1 share multiplied by 1 purchase right) and issuing 20 million shares under the employee stock option program (ESOP).
Regarding the shareholder structure, BVBank's Board of Directors Chairman Le Anh Tai currently owns nearly 14.4 million shares, equivalent to 2.86%, and General Director Ngo Quang Trung currently owns 15.7 million BVB shares, equivalent to 3.13% of capital.
The person holding the largest number of shares is BVBank Board Member Nguyen Thanh Phuong with nearly 22.9 million shares, equivalent to 4.56% of capital.
Ms. Phuong has been a member of the Board of Directors of BVBank since 2011 and held the position of Chairman of the Board of Directors of the bank from January 2012 to April 2013. In addition to holding the position of a member of the Board of Directors of BVBank, Ms. Phuong is also a founding member and Chairman of the Board of Directors of Vietcap Securities JSC and Ban Viet Fund Management Company (VCAM).
On July 9, 2020, BVBank shares officially traded on the UpCoM exchange with the stock code BVB. Recently, the bank's 2024 Annual General Meeting of Shareholders officially approved the transfer of BVB shares trading on the UPCoM market to listing on the Stock Exchange.
BVBank forecasts that the economic situation in 2024 will continue to be difficult. However, the Board of Directors believes that the economy will soon have prospects to improve and BVBank's business situation will recover in 2024. Therefore, the bank continues to submit a plan to list on the stock exchange.
At the 2023 Annual General Meeting of Shareholders, BVBank also submitted a plan to transfer stock trading from UPCoM to listing on the Stock Exchange. and was approved by the General Meeting of Shareholders. However, the bank was "late" and could not carry out procedures related to the transfer of floors due to unfavorable market conditions.
How is BVBank doing business?
Regarding the financial situation, at the end of the first quarter of 2024, BVBank reported pre-tax profit increased 2.6 times over the same period to more than 69 billion VND, and after-tax profit increased 2.75 times over the same period to 55 billion VND.
According to BVBank's explanation, the profit after tax in the first quarter of 2024 increased compared to the same period, mainly due to the bank's main source of revenue being net interest income, which increased by 65% over the same period last year to VND472 billion.
At the end of March 2024, BVBank's total bad debt increased by 17% compared to the beginning of the year to VND 2,231 billion, an increase of 17% compared to the beginning of the year. Of which, substandard debt (group 3 debt) increased by 22% to VND 381 billion, debt with the ability to retain capital (group 5 debt) increased by 28% to VND 1,299 billion. As a result, the ratio of bad debt/outstanding loans increased from 3.31% at the end of 2023 to 3.91%.
Notably, since its listing on UPCoM, BVBank's bad debt has remained at a fairly high level and has continued to escalate. Accordingly, at the time of listing in 2020, BVBank's total bad debt was VND 1,111.4 billion, the bad debt/loan balance ratio was 2.79%, almost reaching the threshold of 3%.
In 2023, bad debt at BVBank officially exceeded the safety threshold of 3%. Specifically, at the end of 2023, BVBank's total bad debt was VND 1,915 billion, an increase of 35% compared to the beginning of the year. As a result, the bad debt/loan balance ratio increased from 2.79% to 3.31%.
As of March 31, 2024, BVBank recorded nearly VND 1,310 billion in special bond value issued by Vietnam Asset Management Company (VAMC).
According to BVBank's financial report, the special bond issued by VAMC began to appear in the third quarter of 2023 with a value of VND 326.3 billion. However, this is not the first time this bond has appeared at BVBank.
Specifically, in BVBank's financial report at the time of listing in 2020, according to the explanation, the bank bought back all special bonds issued by VAMC and the balance as of December 31, 2019 was more than VND 377.4 billion. Equivalent to the fact that BVBank no longer had bad debt at VAMC at that time.
In the 2019 financial report, BVBank pointed out the origin of the above special bonds. Accordingly, VAMC issued bonds to buy back the Bank's bad debts with a total principal value of VND 386.1 billion (on December 31, 2018, it was VND 1,342.7 billion).
As of the time of selling the debt to VAMC, the bank had set aside VND8.7 billion for specific risk provisions for these debts (VND25.5 billion as of December 31, 2018). This provision was used to reduce the principal value of the debt when selling the debt to VAMC.
Source: https://www.nguoiduatin.vn/bvbank-va-mong-muon-viet-tiep-cau-chuyen-chuyen-san-con-dang-do-a665173.html
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