VIB reports upbeat nine-month performance with bright growth path ahead

VIB’s transformation over the past four years has made VIB one of the leading retail banks in the market in many segments

In the year to date, VIB continues to invest in technology, branch networks, and people, employing an additional 1,500 staff in the first nine months of the year.

According to the report, in the third quarter, VIB achieved VND1.668 trillion ($72.5 million) of pre-tax profit, an increase of 30 per cent compared to the previous quarter and 52 per cent against the previous year.

In the first nine months, its total revenue reached VND7.854 trillion ($341.5 million), up 34 per cent; pre-tax profit reached VND4.025 billion ($175,000), up 38 per cent on-year. Fee income reached VND1.637 trillion ($71.17 million), accounting for 21 per cent of the total revenue.

The operating expense ratio stabilised at 40 per cent. Provision expenses increased by 27 per cent on-year. The return on equity (ROE) ratio was 28.9 per cent, among the highest in the banking industry.

As of September 30, 2020, total assets reached over VND213 trillion ($9.26 billion). Credit was over VND151 trillion ($6.57 billion), up 14.2 per cent on-year, triple the industry average.

VIB's non-performing loan (NPL) ratio dropped below 2 per cent compared to the second quarter 2020. With strict and flexible risk management, the bank has maintained prudential ratios and safety ratios, capital adequacy (CAR) ratio under Basel II over 9.5 per cent compared to at least level 8 per cent stipulated by the State Bank. Similarly, the loan to deposit ratio was 77 per cent in comparison with the ceiling of 85 per cent and the ratio of short-term funds for medium and long-term loans was 32 per cent, compared to the ceiling of 40 per cent.

VIB’s transformation over the past four years has made it one of the leading retail banks in the market in many segments.

Accordingly, its retail credit came to VND126 trillion ($5.48 billion) on September 30, 2020, accounting for 85 per cent of total credit, with over 95 per cent secured loans. The two main products of retail credit – home loans and car loans – make up 80 per cent of the loan portfolio, of which VIB maintains a No.1 market share in car loans in Vietnam.

VIB's retail bad debt balance is low at just 1 per cent in the past four years.

VIB remains steadfast in its strategy of leading the credit card trend with the first modern-tech application in Vietnam, outstanding card features, and being one of the top 3 banks with the highest card spending, and also the bank with the highest growth rate in credit card issuance in Vietnam.

In respect to life insurance, VIB continues to be No.1 in the banking industry in terms of bancassurance sales.

VIB’s retail staff grows both in size and efficiency and per capita income. In the past nine months, the retail banking has recruited nearly 1,500 staff members to meet customers' strong demand for VIB products and services.

Consequently, the bank’s retail revenue in this nine-month period surpassed VND5.7 trillion ($247.83 million), up 41 per cent over the same period in 2019.

Moving forward, with the vision of "being the most innovative and customer-centric bank in Vietnam", VIB always has made constant efforts to catch the digital wave of change.

For many years, VIB has always maintained its position as one of the leading banks in the trend of digital banking services with special emphasis on mobile phone platforms.

VIB is the only bank in Vietnam that has won a customer experience award for four consecutive years and Digital Bank of the Year award for three consecutive years by The Asset magazine.

Most recently, VIB is the first and only bank in Vietnam to successfully apply big data and AI technology to optimise the credit card issuance process. Accordingly, users can register Online Plus credit card with their computer or phone and receive credit card limit approval within 15-30 minutes if all criteria are met without going to a bank branch and providing proof of income. This technology helps VIB shorten the time of using cards at a level of 1/500 of the average time in the market.

On October 5, the resolution to cancel the listing on the Unlisted Public Company Market (UPCoM) was duly passed by the shareholders' meeting of VIB. Accordingly, VIB is going to transfer nearly one billion shares to the Ho Chi Minh Stock Exchange (HSX) in the next month.

Previously, the bank also got the approval of the central bank to divide bonus shares at the rate of 20 per cent for existing shareholders to increase its charter capital to over VND11.094 trillion ($482.35 million).