VIB steady on the journey to become leading retail bank

VIB's annual general meeting

During the first five years of the 10-year transformation journey between 2017 and 2026, VIB focused on building a strong, high-growth, and sustainable management system, maintaining its leading position in core business segments. With a solid foundation, VIB stands out in the banking industry in terms of growth rate, business market share, and business results.

From 2017 to 2021, VIB's profits increased 11 times to surpass $347.8 million. Its total asset tripled, from about $4.34 billion in 2016 to nearly $13.47 billion in 2021. The compound annual growth rate of credit and deposit stood at 25 per cent and 29 per cent, respectively, for five consecutive years.

VIB's strong business results in the first phase of the transformation (2017-2021)

According to VIB leaders, the bank’s strong growth has been fueled by the core business segments of retail banking, corporate banking, capital resources, and foreign exchange. The retail banking segment has been considered the top priority for investment, with the goal of positioning VIB as the leading retail bank in Vietnam in terms of quality and scale.

Currently, VIB leads the market with a retail lending ratio accounting for nearly 90 per cent of the credit portfolio, compared to the industry's average of 40 per cent. In which, nearly 95 per cent of the portfolio has collateral.

In terms of scale, VIB ranks among four leading private lenders with the largest retail segment and continuously leads the market in key business areas such as auto loans, life insurance, and credit cards.

The outstanding development of digital banking is also one of the remarkable achievements the bank has made over the past five years, with 97 per cent of transactions conducted on the digital platform by its customers.

Offering increasing benefits for shareholders

After more than one year of listing on the Ho Chi Minh Stock Exchange (HSX), VIB’s market capitalisation and the value of its shares have also marked important milestones, in addition to the impressive and sustainable growth in business results.

As of December 31, VIB's market capitalisation touched $3.04 billion, 2.4 times higher than the first day listed on HSX. It was also recognised as one of the top 5 private lenders and placed 19^th among enterprises with the largest market capitalisation.

Besides this, VIB's stock increased strongly and ranked in the top 3 in the banking industry. VIB stock also ranked 12^th in contribution to the VN-Index in 2021.

Business plan in 2022

The bank’s AGM approved to raise the charter capital to $913 million in 2022, up 35.7 per cent on-year. In which, the bank will distribute bonus shares of 35 per cent to existing shareholders and 0.7 per cent to employees from equity.

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

In addition, the bank’s employee stock ownership policy is expected to facilitate the development of quality personnel resources, effectively serving business and operation.

In the next period, VIB sets sustainable growth targets, pioneers a strong governance foundation, and leads in digitalisation, consistent with the goal of becoming the country’s leading retail bank in terms of quality and scale.

VIB is striving for at least 30 per cent compound annual profit growth for the 2022-2026 period, with a tripled customer base and the market capitalisation expected to grow impressively.

This year, the bank expects its main growth indicators in terms of total assets, credit scale, mobilisation, and profit before tax to increase at least 30 per cent. In which, profit is estimated at $456.5 million.

VIB’s profit overview

Meanwhile, the bank also sets out a strategy to continuously develop and perfect its products and services in order to bring optimal benefits to customers.

In addition, the bank is set to facilitate the application of leading technologies such as automation, AI, machine learning, and cloud computing to better meet the needs of customers and business partners.

VIB has also pioneered and successfully applied the international Basel II, Basel III, and IFRS governance standards in Vietnam over the past few years.