Though profits are moving in the right direction BIDV still has significant potential liabilities.
The Bank for Investment and Development of Vietnam (BIDV) has released its financial statements for Q3 2014.
Net interest income was VND3.55 trillion ($167.29 million), an increase of 9.1 per cent year-on-year. Profits from services rose 13.4 per cent, to VND644 billion ($30.27 million), while profits from business securities increased 67.7 per cent to VND156 billion ($7.33 million).
In the first nine months of the year net interest income grew 13.4 per cent, to VND11.19 trillion ($525.94 million). Profits from services rose 16.8 per cent, to VND2.09 trillion ($98.28 million), profits from foreign exchange increased 3.5 times to reach VND300 billion ($14.1 million), and profits from other activities increased by over 80 per cent, to VND872 billion ($40.98 million).
Operating expenses in the first nine months increased 36 per cent to VND6.5 trillion ($305.97 million). The cost of credit risk provision, meanwhile, fell 3 per cent to VND3.91 trillion ($183.96 million), which resulted in pre-tax profits rising sharply. In addition, as at the end of September deposits and customer loans had increased 18 per cent and 5.4 per cent, respectively.
Sub-prime debts have fallen 53.7 per cent since January, while doubtful debts and irrecoverable debts increased 11.7 per cent and 27.6 per cent, respectively. Irrecoverable debts accounted for 67.5 per cent of all non-performing loans (NPLs) at the bank, standing at VND5.37 trillion ($252.44 million).