Vietnam International Bank (UPCoM: VIB) has released its unaudited financial statement for the first half of 2018 with positive performance in key indicators of pre-tax profit, total deposits, and lending as well as non-performing loans (NPL).
Accordingly, VIB reported VND1.151 trillion ($51.15 million) in pre-tax profit in the first six months of the year, up 216 per cent on-year. Net revenue increased by 56 per cent to VND2.701 trillion ($120.04 million), while operating expenses picked up by some 16 per cent to VND1.316 billion ($58.48 million) on-year. Credit loss provisions were kept at a low level of VND234 billion ($10.4 million) at the end of the period.
Lending and deposits reached VND91.7 trillion ($4.075 billion) and VND83.168 trillion ($3.69 billion), advancing by 8.94 and 7.1 per cent on-year. The Hanoi-based lender was also able to manage its other financial ratios, including the ratio of short-term deposits used for long-term loans at 40.7 per cent (compared to the maximum limit of 45 per cent set by SBV) and loan-to-deposit ratio at 75.7 per cent (compared to the maximum 80 per cent allowed by SBV). The bank’s NPL ratio was recorded at 2.3 per cent.
Capital adequacy ratio (CAR), meanwhile, was kept at 12.5 per cent. The owner’s equity was reported at VND9.669 trillion ($429.73 million). The cost-to-income ratio (CIR) decreased from 65 per cent to 49 per cent at the end of June.
|VIB reported strong performance in most major areas |
The most important contribution to VIB’s growth and profitability came from its retail banking business, with a 100 per cent growth on record for the first half of the year. Given the rapid growth in its personal lending segment, the bank has currently been ranked among the biggest retail banks in the market.
VIB continued to be the number one bank in terms of auto loan disbursement in the first half of 2018, accounting for 30 per cent of the overall auto loan disbursement market. VIB is the market leader in terms of mortgage lending, with a growth rate of 78 per cent on-year, reported in the segments of home loans and home repair loans.
The bancassurance arm, meanwhile, helped VIB’s annual premium equivalent (APE) to boost by 151 per cent on-year, ranking among the three biggest banks in terms of market share in life insurance.
VIB is among the banks who have delivered the highest productivity across the local banking sector as each employee at the lender contributed over VND230 million ($10.45 million) toward the lender’s profit in the first six months.
The bank expected that 2018 pre-tax profit would be more than VND2.5 trillion ($111.11 million), some 25 per cent higher than the target set by shareholders.
In the first half of 2018, VIB achieved many international awards and recognition from the community for its corporate social responsibility (CSR) activities. With the target of pioneering digital banking, VIB has invested in the MyVIB mobile banking application, website, call centre, self-service features, and gained two awards, namely “the Digital Bank of the Year 2017” and “the Best Retail Mobile Banking Experience 2017” by The Asset. On June 4, 2018, the financial arm of the World Bank Group, IFC, awarded VIB “the 2017 Best Trade-Operations Bank Partner in East-Asia Pacific” under the Global Trade Finance Programme (GTFP).
In addition to its achievements in the banking sector, VIB has continued carrying out different CSR activities in promoting education and healthcare. In June 2018, about 100 disadvantaged children born with cleft lips and cleft palates in Northern Vietnam were given free surgeries under the medical charity mission by VIB and Operation Smile Vietnam (OSV). In 2017, VIB also coordinated with OSV to provide medical consultations and free surgeries for nearly 200 children with cleft lips, cleft palates, and phonetics training for nearly 400 families of patients across the country.
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