Personal lending skyrockets, VIB ranks among biggest retail banks in Vietnam

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Vietnam International Bank (UPCoM: VIB) announced its 1H 2018 unaudited financial statements with positive business results showed in key indicators such as profit before tax, deposits, lending and NPL.

Specifically, VIB’s 1H profit before tax reached VND1,151 billion, up 216% year-on-year since the net revenue increased by 56% year-on-year to VND2,701 billion, while operating expense was VND1,316 billion, up 16%. Moreover, thanks to continuous improvement of credit quality, the bank’s credit loss provision was maintained at a low level of VND234 billion.

Lending and deposits reached VND91,700 billion and VND83,168 billion, up 8.94% and 7.1% year-to-date, respectively. VIB managed well other financial adequacy ratios such as ratio of short-term deposits used for long-term loans at 40.7% (compared with permitted maximum limit of 45% by SBV), loan-to-deposit ratio at 75.7% (vs. permitted maximum limit of 80%) and the bank’s NPL ratio at 2.3%. CAR was maintained at 12.5% with equity of VND9,669 billion. The cost-to-income ratio (CIR) decreased from 65% to 49% in 1H 2018.

The most important contribution to VIB’s growth and profitability came from retail banking business, which gained year on year 100% growth of 1H 2018 revenue. As accumulated personal lending is growing rapidly, the bank currently ranked among biggest retail banks in the market.

VIB continued to be the No.1 bank in terms of auto loan disbursement in 1H 2018, reaching over 30% market share. VIB is the market leader as well in terms of growth rate of mortgage lending, up 78% in 1H 2018 year-on-year, focusing strongly on mortgage loans with land deed, and loans for home repair. Specially, the bancassurance business model helped VIB’s annual premium equivalent (APE) grow by 151% year-on-year, ranked among top 3 biggest banks in terms of market share on selling life insurance.

VIB is one of banks with highest productivity in Vietnam’s banking industry as the bank’s profit per employee was more than VND230 million in 1H 2018.

The bank expected that 2018 profit before tax would be over VND2,500 billion, 25% higher than the target agreed by its shareholders.

In 1H 2018, VIB achieved many international awards and recognition of communities in CSR activities

In 1H 2018, VIB achieved many international awards and recognition of communities in corporate social responsibility (CSR) activities. With the target of being pioneer in developing digital banking, VIB has invested for MyVIB mobile banking application, website, call center, self-service features, and gained 2 awards, including “Digital bank of the year 2017” and “Best retail mobile banking experience 2017” by The Asset. On June 4, 2018, the IFC of the World Bank Group awarded VIB the “2017 Best Trade-Operations Bank Partner in East-Asia Pacific” under the Global Trade Finance Program (GTFP). VIB is the only bank among IFC’s issuing bank partners in East Asia and the Pacific to achieve the award in 2017.

In addition to its achievements in the banking sector, VIB has continued to carry out different CSR activities in promoting education and healthcare. In June 2018, about 100 disadvantaged children born with cleft lips, 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.