Last year was quite a successful year for VIB as it achieved most of the targets set during its general shareholders’ meeting, the bank said.

In 2016, VIB’s total assets rose sharply to VND104.5 trillion, surging 24 per cent compared to 2015, and 16 per cent higher than the target set. The bank’s deposits also recorded an annual growth of 11 per cent to touch VND59.26 trillion. Its credit growth rate was 24.7 per cent, while lending balance reached VND60.18 trillion, up 26 per cent year-on-year.

As per the latest data, VIB has managed to balance sources of deposit to meet credit growth demands, considering the State Bank of Viet Nam’s (SBV) tightly controlled liquidity ratios. The bank’s short-term deposit to medium- and long-term loans ratio was 47.1 per cent, while its loan to deposit ratio was 65.6 per cent, much lower than the maximum 80 per cent limit set by the central bank.

In 2016, VIB took various steps to strengthen and improve its early credit risk warning and credit risk identifying systems.

Along with the implementation of credit quality management measures, the bank also focused on dealing with its old non-performing loans (NPL). The bank’s NPL ratio decreased to 1.5 per cent last year (excluding bad debts bought from Viet Nam Asset Management Co, or VAMC) from 2.07 per cent in 2015. As of December 31, 2016, the bank’s NPL ratio (including bad debts bought from VAMC) was 2.58 per cent, while the VAMC lending balance reduced by 30 per cent.

VIB and Vietcombank are the first two banks to have bought bad debts from VAMC to help speed up the bad debts handling process.

VIB’s Basel II project is in its final preparatory phase for implementation, in line with the SBV’s deadline, the bank said. — VNS