Return on Investment in BIDV Reaches 70%
KEB Hana Bank acquired 15 percent of the Bank for Investment and Development of Vietnam (BIDV) in November 2019 by investing 1.0148 trillion won. The current return on investment is 70 percent, with the business performance of the Vietnamese bank improving fast.
Since the acquisition, KEB Hana Bank has helped the BIDV expand its business portfolio from enterprise loans to personal loans. As a result, the BIDV’s personal loan asset ratio has increased from 32 percent to 38 percent in three years and its net profit increased by more than 40 percent in 2021 alone.
KEB Hana Bank’s profits related to the Vietnamese bank totaled 110 billion won at the end of September last year. KEB Hana Bank bought its stock at about 1,337 won per share and the stock price rose to about 2,306 won per share on Jan. 13. “The BIDV allotted new shares last month and our shareholding increased by 155.47 million shares as a result, which means additional profits can be expected,” KEB Hana Bank explained.