October 23, 2018
Vietnam International Bank (UPCoM: VIB) announced its financial statements of the first 9 months 2018 with positive results.
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A clerk at VIB (Photo: Business Wire)
Profit before tax grows 176%
VIB reported profit before tax of VND 1,720 billion, up 176% year-on-year (YoY), equal to 86% of its full year target. The revenue increased by 48% YoY, in which interest income and non-interest income up 50% and 37% respectively; the latter accounted for 16% of total revenue and continued upward trend. The cost-to-income ratio (CIR) significantly dropped from 57% in 2017 to 48%. Provision expense in 9 months was lower than YoY in the context that VIB no longer has bad debts in VAMC. The return on equity ratio (ROE) reached 19.4%.
The total asset of the bank reached over VND 132,500 billion, up 8% year-to-date; lending and deposits reached VND 95,200 billion and VND 89,200 billion, up 13.1% and 14.8% year-to-date, respectively. Non-performing loan ratio (NPL) remained at 2.5%.
VIB ranks among biggest retail banks
VIB puts strong focus on Retail Banking business unit. Lending reached 67,400 billion, up 58% year-on-year, helping VIB become one of the biggest retail banking. VIB continued to maintain the first position in auto-loans taking 25% share of total market. VIB rank top 3 in Bancassurance sales in Vietnam, increasing by 202% YoY. Multi-channel credit card development model grows strongly; number of credit cards increased by 84% YoY and total credit card spending of Q3/2018 went up by 214% YoY. The positive growth in both size and quality has made VIB’s retail revenue in the first 9 months of 2018 rise 92% YoY.
Effective risk management, no bad debts at VAMC & ready for Basel II
According to Moody’s report issued on Aug 2018, Moody’s has upgraded the long-term local and foreign currency deposit and issuer ratings of VIB from B2 to B1. VIB’s capital adequacy ratio (CAR) reached 12.4%. Ratio of short-term deposits used for long-term loans stood at 38.2 %, lower than permitted maximum limit of 45%.
In July 2018, VIB was recognised by the State Bank of Viet Nam and VAMC as one of five banks to re-purchase all bad debts that they sold to VAMC. Three years ago, only VIB & Vietcombank are ready to apply Base II standards.