Vietnam International Bank (VIB) has just posted its third quarter 2020 financial report, core business segments recorded a breakthrough. The bank continues to invest in technology, branch networks and people, up more than1,500 staffs in the first 9 months of the year.
High business growth, strong balance sheet
According to the report, in the third quarter, VIB achieved VND 1,668 billion of profit before tax (PBT), an increase of 30% compared to previous quarter and 52% higher year-over-year. In the first 9 months, total revenue reached VND 7,854 billion, up 34%; PBT reached VND 4,025 billion, 38% higher than same period last year. Fee income reached VND 1,637 billion, accounting for 21% of total revenue. The operating expense ratio (OER) stabilized at 40%. Provision expenses increased by 27% year-over-year. Return on equity ratio (ROE) is 28.9%, among the highest in the banking industry.
As of September 30, 2020, total assets reached over VND 213 trillion. Credit was over VND 151 trillion, up 14.2 percent year-over-year, tripled the industry average.
Non-performing loan (NPL) ratio drops to under the level of 2% 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 of Basel II over 9.5% compared to at least level 8% stipulated by the State Bank, the loan to deposit ratio was 77% in comparison with the ceiling of 85% and the ratio of short-term funds for medium and long-term loans was 32% compared to the ceiling of 40 %.
The leading retail bank in Vietnam
VIB’s transformation over the past 4 years has made VIB one of the leading retail banks in the market in many segments, such as Retail credit reached VND 126,000 billion on September 30, 2020. Retail credit accounts for 85% of total credit, with over 95% secured loan. The two main products of retail credit, home loans and car loans, are 80% of the loan portfolio, of which VIB maintains No. 1 market share in car loans in Vietnam. VIB’s retail bad debt balance is low at just 1% in the past 4 years. About Credit cards, VIB remains steadfast in its strategy of leading credit card trend with the first modern-tech application in Vietnam, outstanding card features, and being the top 3 bank with the highest card spending, and also the bank with the highest growth rate in credit card issuance in Vietnam; Life Insurance: VIB continues to be No. 1 in the banking industry in terms of Bancassurance sales; Retail staff grows both in size and efficiency and per capita income. In the past 9 months, the retail banking has recruited nearly 1,500 staffs to meet the strong demand of customers using VIB products and services; and Retail revenue in the first 9 months of the year reached more than VND 5,700 billion, up 41% over the same period in 2019.
Catching the Digital Wave of Change
With the vision of “Being the most innovative and customer-centric bank in Vietnam”, VIB always has a serious investment 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 4 consecutive years and Digital Bank of the Year award for 3 consecutive years by The Asset magazine. Next, VIB continued to launch a new version of MyVIB application and officially applied e-KYC into issuing e-banking accounts for VIB customers, that allows registration and transaction on the phone just after 1 minute.
Most recently, VIB is the first and only bank in Vietnam to successfully apply Big Data and AI technology to optimize the credit card issuance process. This technology is initially applied to the Online Plus credit cards sparing for online shopping with cash-back up to 6% for online shopping, card transaction fraud insurance worth up to VND 105 million / year.
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 into using card at a level of1/500 of the average time in the market.
These are the initial activities in VIB’s strategy to catch the strong digital transformation wave in the banking industry, and the trend of cashless society in Vietnam.
HOSE listing and dividend payment
On October 5th, the Cancellation resolution of admission to trading on UPCOM was duly passed by the Shareholder meeting of VIB. Accordingly, VIB is going to transfer nearly 1 billion shares to Ho Chi Minh Stock Exchange in the next month.
Previously, the bank also got the approval of the State Bank of Vietnam to divide bonus shares at the rate of 20% for existing shareholders to increase its charter capital to over VND 11,094 billion.