BVBank sees 2.8-fold rise in H1 net profit, issues bonds to raise capital

Viet Capital Commercial Joint Stock Bank (BVBank) earned a net profit of VND121.53 billion ($4.83 million) in the first half of this year, a 2.85-fold jump from the same period last year.

The surge was mainly driven by a 57% hike in net interest income to VND1.02 trillion ($40.64 million) in Q2. Meanwhile, BVBank’s operating costs grew 9% to VND701.3 billion ($27.9million).

For Q2/2024, the lender, registered on the Unlisted Public Companies Market (UPCoM) as BVB, earned VND66.27 billion ($2.64 million) in net profit, a 4.9-fold increase from the same period last year.

However, its bad debt ratio has been upward, rising from 2.79% in 2022 to 3.3% in 2023 and 3.77% in H1. Non-performing loans climbed from nearly VND1.02 trillion in the beginning of 2024 to VND1.26 trillion ($50.1 million) as of end-June.

As of end-June, BVB’s total assets reached VND90.49 trillion ($3.6 billion), up 3% from the start of 2024.

The lender has issued VND1.5 trillion ($60 million) worth of unsecured non-convertible bonds. The bonds have a term of six years, with an annual interest payment and a fixed interest rate of 7.9% for the first year. The bond issue aims to enhance the lender's mid-term capital for operations.

In addition, the State Bank of Vietnam, or the central bank, has allowed BVBank to raise its charter capital by a maximum of VND1.39 trillion ($55.3 million) to VND6.4 trillion ($254.8 million) by offering 50.16 million shares via a rights issue at a rate of 10%, 69 million shares via a public offering, and 20 million shares under an employee stock ownership plan (ESOP).

Founded in 1992, BVBank, categorized as a small-sized bank in Vietnam, had 126 transaction offices as of end-June, rising by 10 from early 2024 and by 38 from early 2022.

BVB had nine individuals holding at least 1% of its charter capital as of July 30. Its largest shareholder is vice chairwoman Nguyen Thanh Phuong, who owns 22.8 million shares, or nearly 4.56% stake.