VPBank Shareholders' Meeting: Establishing a life insurance company, buying a fund management company, aiming for 30% growth in the following years

Profit target of over 25,000 billion VND, NIM among the highest in the industry

Presenting the report of the Executive Board, Mr. Nguyen Duc Vinh, General Director of VPBankk said that in 2025, the bank will face many opportunities but also many challenges.

The biggest opportunity is that the economy is showing signs of recovery. The Government has set a GDP growth target of at least 8% this year, creating recovery opportunities for all industries, including the banking industry.

However, the challenges are also huge, especially the US tariff policy. Currently, the bank's management is still waiting for the negotiation results to find a solution to minimize the negative impact.

According to the Board of Directors' report, in 2025, the bank aims to increase total consolidated assets by 23%, customer deposits and valuable papers by 34%, consolidated credit balance by 25%, and consolidated pre-tax profit by 26%. Of which, parent bank profit increased by 22% (reaching VND 22,219 billion), FE Credit profit increased by 120% (reaching VND 1,126 billion), VPBank Securities (VPBankS) increased by 64% (reaching more than VND 2,000 billion), and OPES Digital Insurance Company increased by 34% (reaching VND 636 billion).

“In addition to setting a growth target of 26% in 2025, VPBank still sets a growth target of 30% for the following years. The Board of Directors is committed to closely monitoring the situation to make timely adjustments,” said Mr. Nguyen Duc Vinh.

This year, despite the challenging economic situation, VPBank still aims to maintain a net interest margin (NIM) of 4.7-4.9%, among the top in the market. The bank also achieved the target of mobilizing non-term deposits (CASA) of VND100,000 billion, a strong growth compared to last year.

At the General Meeting, the Board of Directors also presented to shareholders a plan to pay a 5% cash dividend as committed at the General Meeting of Shareholders in previous years.

In the context that the real estate market may gradually decrease and stabilize in the last 6 months of the year, and the private enterprise sector still faces many difficulties, VPBank plans to set aside 17,000 billion VND in provisions this year, a slight increase compared to last year.

At the end of the first quarter of 2025, VPBank achieved total consolidated assets of nearly VND1 million billion. Of which, parent bank credit reached more than VND663,000 billion, up 5.4% compared to the beginning of the year and significantly higher than the industry average of 3.93%. Total consolidated operating income reached nearly VND15,600 billion, up 16.1% over the same period. Consolidated pre-tax profit reached VND5,015 billion, 20% higher than the same period.

Previously, in 2024, VPBank achieved a consolidated profit increase of more than 85%, of which parent bank profit increased by 36%, FE Credit profit increased by 114%, and OPES profit increased by 204%.

CEO Nguyen Duc Vinh said the bank's growth drivers in 2024 are corporate customers and debt settlement. Maintaining a healthy and efficient balance sheet and efforts to reduce capital costs (down 200 basis points) also help the bank increase operational efficiency.

Contribute capital to establish a life insurance company with charter capital of 2,000 billion VND

At the General Meeting, the Board of Directors presented to shareholders a capital contribution plan to establish a subsidiary operating in the life insurance sector. This subsidiary will have an expected charter capital of VND 2,000 billion, with the specific amount to be decided by the Board of Directors based on the agreement.

The subsidiary's field of operation will include basic life insurance products, health insurance, universal insurance, and other insurance operations as prescribed by law and approved by the Ministry of Finance .

The participation rate of VPBank and related parties is maximum within the scope permitted by law (100%). The specific participation rate of VPBank will depend on the agreement with related parties and/or cooperation partners and relevant regulations on the basis of compliance with legal regulations and the newly established insurance company becomes a subsidiary of the bank.

In addition, the bank also plans to submit to the congress for approval a plan to contribute capital, receive transfer of capital contributions/purchase shares so that a fund management company can become a subsidiary of VPBank.

Specifically, the expected charter capital of the fund management company meets the requirements of the law. The charter capital of the company will be based on the specific status of the target enterprise and according to the agreement with the parties/related investors.

Purchase price/transaction value is based on the agreement mechanism with related parties, current status of target enterprise, market conditions and relevant legal requirements.

Mr. Bui Hai Quan, Vice Chairman of the Board of Directors, said that life insurance and fund management are the "two missing pieces" of VPBank. Adding these two pieces helps complete VPBank's ecosystem. In addition, establishing an insurance company also helps VPBank take the initiative in its business model and customer care.

Source: https://baodautu.vn/dhdcd-vpbank-lap-cong-ty-bao-hiem-nhan-tho-mua-cong-ty-quan-ly-quy-muc-tieu-tang-truong-30-cac-nam-tiep-theo-d274566.html