Bank for Investment and Development of Viet Nam (BIDV) has overtaken Bank for Agriculture and Rural Development (Agribank) as the country’s largest commercial bank in terms of assets.

According to BIDV’s report, the bank’s total assets rose 17.5 per cent year-on-year in 2016 to reach more than VND1 quadrillion (US$44 billion). The bank’s total assets currently account for 14 per cent of the total assets of the whole banking industry, bringing it to the top in terms of operational scale in the banking system.

BIDV’s total outstanding loans and investments by the end of 2016 reached more than VND935 trillion, of which outstanding loans to economic organisations and individual customers were estimated at nearly VND760 trillion, up 17.9 per cent compared with 2015.

The bank’s capital mobilisation rose 20.5 per cent to touch nearly VND940 trillion, of which the capital mobilisation from economic organisations and citizens was estimated at over VND790 trillion.

BIDV’s credit structure is changing in a positive direction, with more focus on commercial and retail clients as well as small and medium enterprises (SME). Retail loans reached VND185.2 trillion, an increase of nearly 32 per cent year-on-year, capital mobilisation from retail clients segment increased 22.6 per cent, while SME loans touched over VND161.7 trillion.

Thanks to the credit growth, BIDV’s pre-tax profits last year reached VND7.5 trillion, up 7 per cent year-on-year.

The bank controlled its total bad debts at only 1.47 per cent, under the 2 per cent required by the central bank, which also stood at a low level in comparison with the entire banking system.

In 2016, BIDV implemented 28 credit packages and credit products with preferential interest rates for proritised customers. By the end of 2016, loans to exports segment, component suppliers industries and agriculture increased by 15 to 18 per cent.

Besides this, the bank actively reduced the lending rate by two times to support enterprises under the government’s policy. — VNS