00:21 (GMT +7) - Wednesday 26/10/2016

Banking & Finance

BIDV sets lower pre-tax profit target

Released at: 14:38, 21/04/2016

BIDV sets lower pre-tax profit target

Bank releases documents for AGM with targets set for 2016.

by Hung Nguyen

The Bank for Investment and Development of Vietnam has released documents for its annual general meeting for 2016 containing targets for the year.

The bank has set a lower pre-tax profit target of VND7.9 trillion ($354.47 million), down by VND49 billion ($2.19 million), or 0.6 per cent, against 2015's figure.

Capital mobilization has been set higher than in 2015, by 21-22 per cent.

Credit growth is 18 per cent higher, aiming for the 20 per cent approved by the State Bank of Vietnam.

The non-performing loan ratio is targeted at less than 3 per cent, with efforts to be made to bring it down to less than 2 per cent.

Return on assets (ROA) is set at 0.7 per cent, lower than last year’s 0.79 per cent.

Return on equity (ROE) has been set at 13 to 14 per cent, lower than last year’s 15.5 per cent.

In 2016 the bank will focus on selling shares to financial investors and strategic investors.

Last year the bank recorded VND6.3 trillion ($282.68 million) in pre-tax profit, an increase of 28 per cent against 2014. When adding the losses of MHB, which were about VND552 billion ($2.47 million), post merger, the final after-tax profit of BIDV was VND5.84 trillion ($262.04 million), an increase of 18 per cent against 2014.

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