Outstanding credit growth and capital mobilization
As of September 30, VIB's total assets reached more than VND445,000 billion, up 9% compared to the beginning of the year, of which outstanding credit reached more than VND298,000 billion, up nearly 12%, higher than the industry average of 9%.
In the third quarter alone, VIB's credit growth was nearly 7%, making it one of the retail banks with the best credit growth in the industry. VIB's capital mobilization in the first 9 months of the year increased by 8%, nearly double the industry average, meeting capital needs for credit activities.
Profits down due to interest rate support, expansion investment and cautious provisioning
After the first 9 months of the year, VIB achieved total revenue of VND15,300 billion, of which net interest income decreased by 9% compared to the same period. With the orientation of focusing on high-quality customer segments with good collateral, along with the launch of many competitive interest rate retail product packages, there was a decrease in net interest margin (NIM), however, VIB still maintained a positive NIM, at 4%.
On September 21, at the Government Standing Committee meeting working with joint stock commercial banks on solutions to contribute to the country's socio -economic development, VIB Chairman of the Board of Directors - Mr. Dang Khac Vy said that the bank has reduced lending interest rates for all customer segments to increase social supply and demand stimulation, supporting economic growth.
Besides, VIB leaders also said that banks also need to carry out safe and strong credit growth to ensure the industry can develop healthily and sustainably.
VIB's non-interest income in the first 9 months of the year reached VND3,500 billion, up 5% and contributing to 23% of the bank's total revenue, operating expenses increased by 13% over the same period, coming from investment in people, opening new branches, investing in technology, digital banking and marketing.
VIB's cost efficiency ratio (CIR) increased to 36%, but is improving compared to the previous quarter as cost optimization initiatives are being strongly implemented along with new branches starting to operate.
In the first 9 months of the year, VIB continued to maintain a cautious policy with a provision of about VND3,230 billion, up 2% and improving the coverage ratio compared to the same period.
In addition, in the context of improving asset quality, provisions in the third quarter decreased by more than 25% compared to the same period. In summary, VIB's pre-tax profit after the first 9 months of the year reached VND6,600 billion, down 21% compared to the same period. Return on equity (ROE) reached about 19%.
Improved asset quality, lowest industry concentration risk, sound risk management
VIB's group 2 debt decreased by more than VND4,000 billion, equivalent to a decrease of 27%, the reserve buffer increased by 27% compared to the beginning of the year. VIB's bad debt ratio as of September 30 was 2.67%.
Safety management indicators are at an optimal level, in which the Basel II capital adequacy ratio (CAR) is 11.5% (regulation: over 8%), the loan-to-deposit ratio (LDR) is 75% (regulation: under 85%), the ratio of short-term capital sources for medium and long-term loans is 26% (regulation: under 30%) and the Basel III net stable capital source ratio (NSFR) is 111% (Basel III standard: over 100%).
Building brand reputation, innovative products and top reality TV shows
In early October, VIB was awarded the "Asia's Excellent Enterprise 2024" by the Asian Enterprise Association, honoring its outstanding retail financial products and solutions, modern digital banking applications, transparent corporate governance and pioneering the application of international standards. In addition, for the first time in Vietnam, VIB launched a personalized card design service based on demand with the support of generative artificial intelligence (Gen AI) technology.
VIB continues to make its mark as a leading retail bank brand and affirms its goal of leading the card trend through the program "Anh trai say hi" with more than 10 billion views on all platforms and 100% of episodes in the Top Youtube Trending.
Responsibility and contribution to society, community and banking industry
During more than 28 years of establishment and development, VIB has actively contributed to community development through economic and social activities, especially in budget contributions and compliance with international standards. VIB has just entered the top 4 private banks with the largest budget contributions and ranked 11th among private enterprises with the largest budget contributions in 2023 with nearly 3,300 billion VND.
In the first 9 months of the year, VIB contributed 15 billion VND to the national emulation movement to join hands to eliminate temporary and dilapidated houses, 5 billion VND to support overcoming storm Yagi and 7 billion VND to sponsor student scholarships, gratitude programs and promote culture,education and society.
Source: https://dantri.com.vn/kinh-doanh/vib-cong-bo-loi-nhuan-9-thang-dat-6600-ty-dong-tin-dung-tang-12-20241022180017491.htm
Comment (0)