VIB releases upbeat first-half business results

Accordingly, the bank (VIB) posted VND303 billion ($13.7 million) in before-tax profit, up 7 per cent on-year.

Its lending balance reached VND51.3 trillion ($2.34 billion), growing 7.4 per cent which is 0.6 per cent higher than the industry’s average growth.

Deposit growth rate was also 7.4 per cent, reaching VND57.2 trillion ($2.6 billion). Its fee and commission incomes increased by 41 per cent against the same period last year.

The bank’s total assets touched VND86.7 trillion ($3.95 billion), up nearly 3 per cent compared to end of 2015.

As at June 30, VIB’s non-performing loan rate fell to 1.84 per cent compared to 2.05 per cent by at the end of 2016’s first quarter and 2.07 per cent at the end of last year.

VIB’s capital adequacy ratio continued to be among the top banks in the market at more than 16 per cent. VIB has recently paid a dividend rate of 8.5 per cent in cash to its shareholders, while the bank is estimated to pay an additional 16.5 per cent in bonus share in the upcoming time.

In doing so, the bank reports an annual dividend payout rate of 24 per cent-25 per cent in the two consecutive years.

In June 2016, Ian Narev, CEO of Commonwealth Bank of Australia (CBA)- a strategic partner with 20 per cent stake in VIB, and some other senior managers made a working visit to Vietnam and had meetings with Vietnamese government and State Bank (SBV) representatives, and VIB chairman and CEO with a view to strengthening the strategic cooperation between both parties.

VIB and CBA also discussed some of the key areas where they can deepen cooperation through the Capability Transfer Programme. Both parties made a strong commitment to work together to ensure VIB success when stepping in the next growth phase.

In the first half of 2016, VIB has experienced a steady strong growth in products sold online with a 140 per cent increase during the period. In the past year (from June 2015 to June 2016), there has been 700 per cent increase in products sold online, a 20 per cent increase in internet banking active users and 89 per cent increase in mobile banking app active users.

VIB started its digital transformation journey in 2015, which has lead to the positive growth in digital. In 2016, VIB is taking the next step in the journey by establishing a new Digital Banking division focusing on customer centric digital proposition for Vietnam’s digital savvy customers.

The bank is continuing investment into VIB digital banking platform and establishing capabilities to develop and test new digital banking business model.

In addition to the new Digital Banking division, VIB has recently established a new Global Banking division to better serve the customers, helping the bank to make full use of its high credit ratings and conduct efficient management in line with international standards.