BIDV 2007 Pretax Profit VND2.1 Trillion Vs VND650 Billion

The state-owned Bank for Investment and Development of Viet Nam (BIDV) made a pretax profit of VND2.1 trillion last year, more than double 2006's VND650 billion, a bank official said Thursday.

At the end of 2007, the unlisted Hanoi-based bank had total assets of VND201.38 trillion, up from VND158.16 trillion, said BIDV Deputy General Director Phan Thi Chinh.

Its outstanding loans rose 34% on year to VND131.98 trillion, she said, adding that bad debts accounted for 3.98% of its total debts, down from 9.6% in 2006.

BIDV's return on assets - as per international financial reporting standards - was 0.89% last year, compared with 0.4% in 2006, while its return on equity was 25.01%, up from 14.23%.

In the first quarter of this year, the bank made a pretax profit of VND754 billion - or 25% of its target for this year.

BDIV General Director Tran Bac Ha said the bank is aiming for its outstanding loans to rise 25.4% on year in 2008.

Ha added that BIDV has asked the government to lower its corporate income tax rate to 25% next year onwards from the current 28%.

He said that BIDV plans to hold an initial public offering in 2008, and the Ministry of Finance will set the date. (Dow Jones)