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Banking & Finance

Bao Viet reaches $1 billion in revenue

Released at: 12:35, 24/12/2016

Bao Viet reaches $1 billion in revenue

Photo: Duc Anh

Insurer the first in Vietnam to reach milestone.

by Nghi Do

Bao Viet Holdings (Code: BVH) has announced that revenue had hit $1 billion as at December 23, becoming the first insurer in Vietnam to reach the milestone.

Its consolidated revenue was estimated at VND24 trillion ($1 billion), equal to 105 per cent of its annual plan, while after-tax profit also exceeded its annual plan. BVH’s share price has seen solid gains this year. In the first half of October it increased by 20 per cent and reached a one-year peak of VND72,000 ($3.2). At the close of trade on December 22 it stood at VND59,100 ($2.65).

Bao Viet Holdings’ consolidated revenue in 2015 was VND20.8 trillion ($93 million), equal to 110 per cent of its annual plan and up 9.2 per cent against 2014. Pre-tax profit was VND1.46 trillion ($65.5 million), equal to 101.8 per cent of its annual plan, and after-tax profit was VND1.2 trillion ($53.8 million), equal to 104.1 per cent of its annual plan.

The parent company earned after-tax profit of VND1 trillion ($47 million) in 2015, equal to 102.2 per cent of its annual plan. Return on equity was 14.7 per cent. Revenue from the insurance business was VND16.5 trillion ($739 million), up 17.4 per cent.

Premium revenue from non-life insurance was VND6.5 trillion ($291 million), an increase of 5.9 per cent, including net written premiums of VND5.9 trillion ($264 million), up 4 per cent. After-tax profit was VND279 billion ($12.5 million), up 11.5 per cent and equal to 108.3 per cent of its annual plan.

Revenue from life insurance was VND10.1 trillion ($452 million) last year, an increase of 26.9 per cent. New life insurance premiums were VND2.3 trillion ($103 million), a year-on-year increase of 23.2 per cent. Pre-tax profit was VND816 billion ($36.5 million), up 8.1 per cent, while after-tax profit was VND635 billion ($28.5 million), up 7.8 per cent.

Revenue from securities in 2015 was VND291 billion ($13 million) and after-tax profit VND117 billion ($5.24 million). The Bao Viet Securities JSC (BVSC) held third position at the Ho Chi Minh City Stock Exchange in terms of bond brokerage, with a 12.15 per cent share, and was tenth in stock and fund certificate brokerage, with a 3.73 per cent share, up on 2014.

Revenue from fund management was VND58 trillion ($2.62 billion), up 12.1 per cent and equal to 117.2 per cent of its annual plan. Pre-tax profit was VND18 billion ($807,174), an increase of 17.9 per cent and equal to 120.4 per cent of its annual plan. As at December 31, 2015, the total assets under management at Bao Viet Fund Management were VND31 trillion ($1.4 billion), up 50 per cent against 2014.  

In November 2015, PwC Vietnam and Bao Viet Holdings signed a contract on guarantee services, wherein the former will provide sustainability assurance services for the financial-insurance giant. PwC Vietnam will review Bao Viet’s current reporting against international best practices, identify operational improvements, and provide independent assurance of the data in Bao Viet’s sustainability report. The standard for assurance to be applied is ISAE3000, which is issued by the International Federation of Accountants (IFAC).

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