Vietnam International Bank (UpCom stock code: VIB) has just been approved to increase its chartered capital to VND7,834 billion in 2018 from VND5,644 billion by the State Bank of Vietnam (SBV) and had relevant dossier endorsed by the State Security Commission of Vietnam. Accordingly, VIB’s shareholders will receive bonus shares with the ratio of 41.13%, equivalent to 411.3 shares for every 1,000 shares they owned. The final date for registration is November 19, 2018.
After completion of the chartered capital increase in November 2018, VIB’s Basel II Capital Adequacy Ratio (CAR) will increase positively, maintaining safe gap with CAR minimum requirement of 8% as regulated in Circular 41 issued by SBV. In the list of 10 commercial banks to pilot Basel II implementation, to date, VIB is one of two banks that have finished the implementation and registered for applying the Basel II standards in 2018.
The increased chartered capital will help VIB operate more safely and have more capacity to cope with potential risks, including risks from credit, market and the bank’s operation activities. Also, VIB is one of five banks which repurchased all bad debts that they sold to Vietnam Asset Management Company (VAMC).
In addition, the financial capacity enhancement and CAR increase will help the bank grow more sustainably, providing its customers with better experience of financial services and preferable offers and ensuring long-term benefits of VIB’s shareholders.
Earlier, VIB announced its 10-month business statement with its profit before tax reaching VND1,956 billion, up 187% year-on-year, fulfilling 98% of the full-year target. Accumulated revenue increased by 47% year-on-year, in which interest income and non-interest income up 49% and 40%, respectively. VIB continues to become one of the biggest retail banks in Vietnamese market as the bank’s accumulated individual lending reached VND69,000 billion, up 55% year-on-year.
VIB ranks 27th in top 500 private businesses with largest earnings in 2017, according to Profit500 report issued by Vietnam Report in October 2018.