VIB reports PBT of over VND518 billion, retail banking income up 101%

Vietnam International Bank (VIB) just announced its preliminary Q1 2018 business results.

In the first quarter of the year, the bank’s profit before tax (PBT) surged strongly by nearly 230% year-on-year to more than VND518 billion, exceeding its established target for the quarter by 34%. The bank achieved a 49% hike of income due to strong increase in net interest income and other non-interest income, up 52% and 125%, respectively. The bank also improved the efficiency ratio (cost to income ratio – CIR) to 51% as the ratio has been decreasing for recent years.

Until the end of March 2018, the bank’s total credit, including corporate bonds, surged by 6.2% compared to the end of last year to nearly VND90 trillion, in which lendings was over VND84 trillion. VB is making strong movement to retail credit in line with the bank’s strategy. The accumulated deposits, including certificates, gained 6.2%.

The bank controlled non-performing loans ratio at 2.5%, unchanged compared with the end of last year. The ratio of non-performing loans in new lendings for the period of recent 4 years is quite low at 0.7%. The bank’s loan to deposit ratio (LDR) and ratio of short-term funds used for medium and long-term loans are 71.9% and 41.2%, respectively, meeting the requirements of the State Bank. The capital adequacy ratio (CAR) is 12.5%.

VIB’s retail banking income increased by 101% year-on-year in the first quarter of 2018. Accumulated individual lendings gained 12% to VND56,500 billion. VIB had its last year’s individual lendings up 83% year-on-year. The bank’s retail banking products, including mortgages, auto loans, bancassurance and cards, continued to have high growth rate in the quarter. The new mortgage loans and auto loans grew by 77% and 114% year-on-year, respectively. VIB continues to be among market leaders with new auto lending sales accounting for 18% in total auto sales reported by VAMA.

VIB has also made important changes to business model relating to bancassurance since early 2018, enabling the bank insurance income to increase by 62% year-on-year. The bank had its March’s bancassurance sales amount to the same volume of the whole first quarter of last year.

Otherwise, VIB continued to launch many card products, offering customers more choices. The bank achieved growth rate of 105% for new cards. VIB also boosts its investment in digital banking. The bank’s MyVIB continued to be named the most favorite mobile banking app in the country.

With such positive growth rate, the bank’s BOD is confident that VIB will achieve a PBT which exceeds the VND 2,005 billion profit target by 20-30%.

Previously, VIB’s shareholders approved the proposal of 36% dividend payment, including 5% and 31% payment by cash and stocks, respectively, in the AGSM 2018 held on March 29 and the proposal of offering and issuing new shares to investors in form of private placement up to 10% of charter capital.

The shareholders also approved the bank’s plan to debut on HCMC bourse within this year.

- Source: VIB
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