VIB plans 24 per cent jump in pre-tax profit

March 12, 2019 | 20:11
Hanoi-based commercial lender VIB has just released documents for its upcoming annual general shareholders’ meeting, which is slated to take place on March 28 in Ho Chi Minh City.
vib plans 24 per cent jump in pre tax profit
VIB aims to keep bad debt ratio below 2 per cent this year

Accordingly, the bank targets to reach VND3.4 trillion ($147.8 million) in pre-tax profit this year, a 24 per cent rise on-year.

Its total assets are expected to reach VND182.908 trillion ($7.95 billion) and total lending balance VND136.509 trillion ($5.93 million). Its deposit volume from tier 1 markets is planned to touch VND127.198 trillion ($5.53 million). The bank expects to maintain its bad debts ratio at below 2 per cent.

The bank plans to scale up its charter capital to VND10.900 trillion($434.7 million), as well as grant bonus shares to shareholders and sell to investors through private placements. Nearly 10 per cent of ownership in the bank is still available for foreign investors.

The bank plans to debut on the Ho Chi Minh City Stock Exchange this year to optimise shareholders’ interests.

In addition, VIB plans to debut on the Ho Chi Minh City Stock Exchange to optimise shareholders’ interests. Moreover, the bank will also seek shareholders’ approval for the election plan of its eighth-term Board of Director (BOD) and Board of Supervision (BOS) (2019-2023) with seven members of BOD (including two foreigners) and three full-time members of BOS.

VIB’s performance improved significantly in the last five years, exceeding its revenue and profit projections.

In particular, its pre-tax profit reached VND2.743 trillion ($119 million), doubling year-on-year and achieving 137 per cent of the target.

Total assets amounted to nearly VND140 trillion ($6.08 billion), lending growth reached 17 per cent, and non-performing loans were kept at 2.2 per cent. In last July, VIB became one of the first five banks to buy back all bad debts from the Vietnam Asset Management Company.

VIB has been recognised by international institutes and state management agencies as one of the best banks in terms of quality and transparency.

In November 2018, VIB became the first commercial joint stock bank approved by the State Bank of Vietnam to apply Basel 2 standards under Circular No.41/2016/TT-NHNN. VIB has been twice praised by Moody’s for its positive business results and financial strength.

VIB’s retail banking activities have continued to affirm its leading position in the market in terms of lending growth and as one of the top three in bancassurance business for two consecutive years.

In December 2018, VIB launched five new credit card products, meeting the various demands of cardholders. VIB has also invested remarkably in developing the MyVIB mobile application, Internet Banking, its website www.vib.com.vn, and automatic sales tools, with the hope of becoming the pioneer in digital banking.

VIB has been awarded as the most innovative workplace environment 2018 by International Finance in building democratic and convenient working environment, promoting learning culture and comprehensive welfare model besides applying a competitive remuneration regulation and paying salary based on employees’ contribution.

Besides, the bank expects to pay 5.5 per cent cash dividend and 18 per cent bonus shares for the shareholders, as well as over 7.7 million of treasury shares to reward employees.

By Anh Duc

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