Where does VPBank's 20% profit growth in the first quarter come from?

Continuing its positive momentum in 2024, Vietnam Prosperity Joint Stock Commercial Bank (VPBank, HoSE: VPB) ended the first quarter of 2025 with a profit growth of 20% over the same period, higher than the industry average. Credit continued to expand, while mobilization costs were optimized and asset quality was well controlled, which helped VPBank start this year with positive results.

Outperforms the banking industry average

According to data from WiChart , the pre-tax profit in the first quarter of 27 banks listed and traded on UPCoM was over VND82,000 billion, up 14% over the same period. Meanwhile, VPBank's consolidated profit reached VND5,015 billion, up 20%, with contributions from both the parent bank and member units in the ecosystem.

Along with the breakthrough profit, VPBank's total assets jumped to over VND994,000 billion, up 7.6% in just one quarter, compared to the industry average of only nearly 2.8%. The above results put VPBank in the group of private joint stock commercial banks with the largest total assets in the market.

Credit growth and bank mobilization also showed synchronization. According to data from the State Bank of Vietnam (SBV) and the General Statistics Office, by the end of March, the industry's credit growth reached 3.93%, while mobilization was at 1.36% (as of March 25). During the same period, VPBank's consolidated credit increased by 5.2% compared to the beginning of the year, while mobilization was up to 14.2%.

Chart comparing VPBank's profit, credit and deposit growth with industry average

Decoding VPBank's growth momentum

VPBank's positive profit figures in the first quarter of 2025 were contributed by both the parent bank and its subsidiaries. Specifically, the parent bank brought in VND 4,942 billion, while FE CREDIT returned to profit for the fourth consecutive quarter, VPBankS achieved a profit of VND 351 billion, nearly double the same period in 2024.

For parent bank VPBank, strong credit growth and recovery from bad debts are the main drivers on the revenue side.

In the first quarter, VPBank's net interest income set a new record, increasing by 17.9% to VND13,356 billion, mainly due to credit growth of 21.9% over the same period. Strategic credit segments such as individual customers and small and medium-sized enterprises (SMEs) all recorded positive results. At its subsidiaries, VPBank's margin lending increased by 35%, and FE CREDIT's first quarter disbursement revenue was also 17% higher than the same period in 2024.

Meanwhile, controlled operating costs and provisioning expenses supported the bank's overall business results.

Capital costs were effectively controlled through portfolio optimization and diversification of funding sources. Mobilization from VPBank's individual customers reached VND341,000 billion, up 15.7% compared to the beginning of the year, mobilization from foreign-invested enterprises (FDI) reached more than VND11,300 billion, up 29.2%. Thanks to the policy of attracting new customers and the "Super Profit" tool, the size of non-term deposits (CASA) of the parent bank increased by nearly VND9,400 billion compared to the beginning of the year, reaching VND79,216 billion. Individual capital costs were thus maintained at 4.4%, similar to the previous quarter.

Collection from resolved debt continued to be a bright spot this quarter. Specifically, collection from resolved debt reached VND856 billion, more than double the same period last year and contributed largely to the bank's net profit from other activities. In 2024, VPBank established the Debt Collection and Settlement Division (DCD) to meet the increasing demand for risk management, ensuring that debt collection activities are managed synchronously, effectively and consistently.

The above results brought VPBank's total operating income (TOI) to VND15,566 billion, up 16.1% year-on-year, while operating expenses and provision expenses continued to be optimized. VPBank's cost-to-income ratio (CIR) in the first quarter remained at 24.9%, still among the lowest in the banking industry, despite the increase in the number of employees and average income.

As of March 31, 2025, the parent bank's bad debt ratio remained below 3%, while the Group 2 debt ratio continued to decline sharply, reaching its lowest level in nearly 3 years. At the same time, thanks to credit costs and the lowest debt write-off rate since the second quarter of 2022, VPBank's provision expenses increased less than pre-provision profit, helping pre-tax profit grow by 20%.

Consistent with its strategy of covering the retail segment, VPBank has just unveiled a new segment, VPBank Private, providing specialized financial services created exclusively for elite customers, with the mission of accompanying and cultivating sustainable and everlasting prosperity.

This is a strategic step, demonstrating VPBank's strong commitment to providing superior, classy, ​​and personalized financial solutions to fully meet each customer profile.

The opening of VPBank Private has once again affirmed VPBank's business philosophy: constantly improving experiences, creating outstanding values ​​and accompanying customers on the journey to conquer the pinnacles of life.

Source: https://thoibaonganhang.vn/tang-truong-loi-nhuan-20-cua-vpbank-trong-quy-i-den-tu-dau-163864.html