VIETNAM, April 27 –
VIB is striving to reach 10 million customers by 2026, focusing on developing an ecosystem of customers across a variety of smart financial platforms. — Photo courtesy of VIB
HÀ NỘI — Vietnam International Bank (VIB) reported pre-tax profits of nearly VNĐ2.3 trillion in the first quarter of this year (Q1), up 26% year-on-year.
VIB attributed its impressive increase in first-quarter pre-tax profit to its focus on a high-quality retail loan portfolio, with the retail loan ratio accounting for nearly 90% of the loan portfolio, in which 95% of the portfolio was guarantee. .
The bank’s return on equity (ROE) ratio was 30%, one of the highest in the banking industry.
Over the three months, VIB saw its total operating profit exceed VNĐ 4.1 trillion. Of this amount, net interest income reached VN3.5 trillion, marking a year-on-year increase of 27%, while non-interest income reached VN650 billion, contributing 16% to income. total operating income of the bank.
The bank’s outstanding loans exceeded nearly VNĐ217 trillion and its capital mobilization grew positively by 7.7% to reach VNĐ302 trillion. Meanwhile, the bank also posted credit growth of 6.1% in the three months.
Net Profit Margin (NIM) increased 4.5% during the period, driven by a 40 basis point year-on-year decline in funding costs.
The expansion of the NIM is mainly due to the growth of the current and savings account (CASA) of more than 40% and loans from foreign financial institutions, which increased by almost 80% compared to the same period the last year.
These sources of capital enabled VIB to keep its mobilization costs low despite the slight rise in market interest rates.
Meanwhile, the bank’s cost-income ratio (CIR) fell to its most efficient level ever at 35%, proving its outstanding performance in managing costs and increasing profitability. In addition, credit costs have been brought under control at a low level thanks to effective risk management and control.
Strict risk control, safe and high quality portfolio
In recent years, many policies have been issued by the State Bank of Việt Nam (SBV) to ensure the safe, efficient, sound and transparent functioning of the local financial market. One of them was Circular No. 16/2021/TT-NHNN, which stipulates the purchase and sale of corporate bonds by credit institutions.
As of March 31, VIB’s outstanding corporate bonds amounted to over VN 2.61 trillion, equivalent to 1.2% of the total credit portfolio, a very low figure in the banking sector.
The bonds invested by VIB were mainly issued by companies that have achieved good commercial results, ensured quality assets and strictly controlled risks. They also had a clear, secure and transparent capital utilization objective.
As a pioneer in adhering to key international risk management standards, VIB has maintained its market position as a sustainable development bank with a leading risk management base. The capital adequacy indicators, the bad debt ratio and the bank’s strictly managed liquidity were among the best in the sector.
On April 19, VIB received approval from SBV to increase the share capital by more than VN5.54 trillion by issuing 35% free shares for existing shareholders and 0.7% shares for employees. After the last capital increase, VIB’s registered capital amounted to more than VNĐ 21 trillion, allowing the bank to expand its business on the basis of strong capital.
With the strategy of developing an unlimited card opening ecosystem, VIB is expected to provide the market with 2.5 million credit cards in the next five years, contributing to the strengthening of cashless payment business. — Photo courtesy of VIB
Targeting new customers, expansion the ecosystem of products and services
VIB is striving to reach 10 million customers by 2026, focusing on developing an ecosystem of customers across a variety of smart financial platforms.
In the first quarter, VIB announced the expansion of the card opening ecosystem in the Bizverse World virtual environment, bringing a new virtual credit card opening experience to Vietnamese users.
Thanks to this decision, VIB became one of the first banks in the country to offer its customers a variety of card opening channels ranging from those in the real space and the virtual world, in branches and in major country and region e-commerce platforms.
With the strategy of developing an unlimited card opening ecosystem, VIB is expected to provide the market with 2.5 million credit cards in the next five years, contributing to the strengthening of cashless payment business.
In addition, with the “one-stop-shop” model, VIB will continue to accelerate the application of cutting-edge technology to account opening and transaction processes. It will help customers save time and have exciting service experiences.
The more powerful technological apparatus is also expected to maximize benefits for the bank’s customers and increase its CASA ratio to over 30% by 2026.
VIB’s 10-year transformation journey, which extends to 2026, has seen many achievements and positive recognition from major domestic and foreign financial institutions with awards such as Top 10 Prestigious State-Owned Enterprises and efficient, the Top 50 most efficient companies in Việt Nam and the bank with the fastest growing trade finance business in the East Asia-Pacific region.
Recently, Credit Suisse named VIB one of the region’s promising banks, thanks to its strong growth and leading performance.
By 2026, VIB will continue to focus on the medium to long-term development of digital banking and technology-intensive products to become a leading retail bank in terms of scale and quality in Việt Nam. —VNS