VIB records positive business results in H1

Wednesday, Jul 11, 2018 15:53

A VIB clerk at work. — VNS Photo

Vietnam International Bank (VIB) yesterday released its unaudited financial statements for the first half of this year with positive business results in key indicators.

During the period, VIB’s net revenue increased by 56 per cent year-on-year to VND2.7 trillion (US$118.5 million) while its operating expense reached nearly VND1.32 trillion, up 16 per cent year-on-year. That resulted in the bank’s strong rise in pre-tax profit at 216 per cent, hitting VND1.51 trillion.

Moreover, thanks to the continuous improvement of credit quality, the bank’s credit loss provision was maintained at a low level of VND234 billion.

According to the results, lending and deposits of VIB topped VND91.7 trillion and VND83.2 trillion in the first six months, up 8.94 per cent and 7.1 per cent, respectively.

In the period, the bank also successfully managed other financial adequacy ratios such as ratio of short-term deposits used for long-term loans at 40.7 per cent compared with permitted maximum limit of 45 per cent by the State Bank of Viet Nam (SBV); loan-to-deposit ratio at 75.7 per cent compared with SBV’s permitted maximum limit of 80 per cent. The bank’s non-performing loan ratio was 2.3 per cent.

The most important contribution to VIB’s growth and profitability came from its retail banking business, which gained a year-on-year revenue rise of 100 per cent in the first half, the bank said in a statement.

“As accumulated personal lending is growing rapidly, VIB currently ranks among the biggest retail banks in the market,” the bank said.

The bank expects its pre-tax profit to reach over VND2.5 trillion by the end of the year, 25 per cent higher than the target set by its shareholders.

In addition to its achievements in the banking sector, VIB has continued to carry out different corporate social responsibility activities in promoting education and healthcare. In June, about 100 disadvantaged children born with cleft lips or cleft palates in the north were given free surgeries under the medical charity mission run by VIB and Operation Smile Vietnam (OSV).

Earlier in 2017, VIB also coordinated with OSV to provide medical consultations and free surgeries for nearly 200 children with cleft lips, cleft palates and phonetics training for nearly 400 families of patients across the country. — VNS

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