VIB plans paying 35 per cent in dividends in 2022

For the next five years, VIB aims to maintain its position as the leading retail bank in Vietnam in terms of quality and scale

VIB's board of directors will submit its profit plan and business targets for 2022 to the GMS by March 16. Specifically, VIB sets a goal of $456.5 million in profits, an increase of 31 per cent compared to 2021.

It also targets to reach $17.5 billion and $11.54 billion in total assets and total outstanding credit balance, respectively. Of which, the growth rate of total outstanding credit balance can be adjusted depending on the allowable limit of the State Bank of Vietnam (SBV).

The bank’s funding is also expected to reach $12.2 billion, up 30 per cent on-year.

In 2022, VIB continues to promote the growth of revenue from the traditional credit segment to products that bring non-interest income to help diversify revenue sources and improve profitability.

The return on equity will continue to be maintained at the top of the industry, while ratios in terms of risk management will be ensured in accordance with leading international standards.

In light of the meeting prospectus, in 2022, VIB plans to increase its charter capital to over $913 million, up at least 35.7 per cent on-year.

The bank plans to issue bonus shares at 35 per cent to existing shareholders and equity shares at 0.7 per cent to employees.

This plan comes from VIB's capital needs for investment projects in technology systems, networks, and credit extension, meeting the capital adequacy ratio in accordance with the provisions of the law.

It will also help ensure the bank’s employee stock ownership plan that aims to develop and maintain quality human resources, serving its business and operations.

Positioned as the leading retail bank in Vietnam in terms of quality and scale

After the first phase of the 10-year transformation journey, VIB has built a solid and effective foundation for business operation, digital transformation, and risk management. It has also successfully shifted into a professional retail bank with a retail lending ratio accounting for nearly 90 per cent of the credit portfolio, twice the industry average.

Between 2017 and 2021, VIB's pretax profit rose by 11 times while its capital and total assets both tripled.

During the period, the bank grew strongly in lending and deposit activities and led the insurance market share and credit card trend. It also succeeded in building a branch channel and in developing a modern and multi-featured digital bank.

For the next five years, VIB aims to maintain its position as the leading retail bank in Vietnam in terms of quality and scale. The bank has targeted its profit growth of at least 30 per cent annually and is expected to surpass the billion-dollar mark.

Besides this, the customer base will also be expanded nearly three times compared to current level. These growth targets leverage robust economic rebound, strong growth potential of the retail segment, and VIB’s outstanding advantages from its success in transiting to the current modern, professional retail model and pioneering in digitalisation.

Focusing on core high-tech products and services

VIB will continue to develop and diversify its products and services to bring optimal benefits to customers.

It will further concentrate on retail banking segment development and lead the market with a string of products like home loans, automotive loans, business loans, and credit cards, as well as deposits, investments, and insurance products.

The bank has made intensive investments into technology platforms, striving to turn its digital platforms and products the first choice of customers for financial products and services.

In addition, it will facilitate the application of leading technologies such as automation, AI, machine learning, big data, and cloud computing to better meet the needs of customers as well as promote the bank's digital products and services.

Consistent with its vision of becoming the most innovative and customer-oriented bank in the country, VIB continues to strengthen its brand and reaffirm its position in the domestic and foreign financial markets through the application of leading international standards in operation and management.