|Transactions at a BIDV’s branch in Hà Nội. — Photo vietnambiz.vn|Viet Nam News
HÀ NỘI — Standard & Poor’s (S&P) Global Ratings affirmed its “B+” long-term and “B” short-term issuer credit ratings of the Joint Stock Commercial Bank for Investment and Development of Việt Nam (BIDV).
In S&P’s opinion, BIDV’s ratings, which remained unchanged, reflect the bank’s strong franchise as the largest bank in Việt Nam in terms of total assets, satisfactory profitability and asset quality as compared to its peers in Việt Nam.
BIDV is the largest domestic bank by total assets, and second largest by loans, deposits, and distribution network, accounting for some 13 per cent of the system’s total loans and 12 per cent of deposits.
The bank’s liquidity benefits from its stable deposit base and access to funding from the Government and international lending organisations for developmental projects. BIDV has also made considerable progress in the retail sector that will diversify its business and enhance its yield.
In addition, S&P expects a high likelihood of extraordinary government support for BIDV, given its systematic importance. The “stable” outlook reflects S&P’s expectation that BIDV will maintain its strong franchise and satisfactory profitability and will improve its asset quality, especially via resolution of legacy bad loans over the next 12 to 18 months.
This year marks the eighth consecutive year that BIDV is reviewed by S&P, as well as the 12th consecutive year that BIDV is reviewed by Moody’s Investors Service. — VNS