Nearly one billion shares of Vietnam International Bank have been listed on the Ho Chi Minh City Stock Exchange (HSX) with the reference price for the first day of trading at VND 32,300 ($1.40).
|VIB has been successfully mitigating the impacts of the pandemic this year |
“It is an important step for VIB to list shares on HSX and this is also the basis to keep the dynamic, high-speed, and sustainable growth that is has been pursuing over the years. The listing will bring optimal value to customers, shareholders, investors, employees, and prosperous development of Vietnam's financial market,” Han Ngoc Vu, CEO of VIB shared at the event.
Leading business performance, stable dividend policy
VIB is one of the leading commercial banks in terms of business performance. The bank holds total assets of more than VND230 trillion ($10 billion), total credit of VND160 trillion ($6.96 billion), and equity of more than VND17 trillion ($739.13 million). At the moment, VIB has nearly 9,000 employees and a network of 165 business units in 27 provinces and cities, serving 3 million customers nationwide.
In the first 10 months of the year, VIB's pre-tax profit reached VND4.57 trillion ($198.7 million), an increase of 40 per cent compared to the same period last year, completing 100 per cent of the 2020 plan.
Accounting for 24 per cent of the total revenue, non-interest income gained VND2.16 billion ($93.9 million). The non-performing loan (NPL) ratio is 1.6 per cent, capital adequacy ratio (CAR) is over 9.5 per cent, higher than the minimum 8 per cent stipulated by the State Bank. Average return on equity (ROE) is 29 per cent, among the highest in the banking industry.
In recent years, VIB has maintained a stable dividend policy of 5-5.5 per cent of cash dividend and bonus share distribution of 20-40 per cent. In 2020, VIB and other banks do not pay cash dividends to reduce lending interest rates for outstanding loans and new loans in accordance with Directive No.02/CT-NHNN of the State Bank of Vietnam (SBV).
Previously, the bank announced November 20 as the final date for shareholders to register to receive bonus shares at the rate of 20 per cent equity. This is part of VIB's plan to increase its charter capital to over VND11.1 trillion ($482.6 million) as approved by the SBV before.
Top growth rates in Vietnam retail banking
In the past four years, with the target of shifting to retail banking, VIB has been one of the leading retail banks in the market in many segments.
Retail credit growth is at an average 52 per cent per year from 2016. As of October 21, the bank's retail credit reached more than VND130 trillion ($5.65 billion). Retail credit increased to 82 per cent of total credit, with over 95 per cent of outstanding loans collateral.
The two main products of retail credit – home loans and car loans – are 80 per cent of the loan portfolio, of which VIB maintains the No.1 market share in car loans in Vietnam. VIB's retail bad debt balance was only 1 per cent in the past four years.