Vietnam International Bank (VIB)’s pre-tax profit recorded a significant yearly growth of 95 per cent to more than VND2.74 trillion (US$118 million) in 2018, the bank announced on Thursday.

The pre-tax profit was also 37 per cent higher than the target for the year, VIB said, adding that 2018 was the second consecutive year its profits saw a year-on-year rise of nearly 100 per cent.

The bank’s revenue increased by 48 per cent over the previous year, in which interest income and non-interest income grew by 40 and 92 per cent, respectively.

The bank’s cost to income ratio (CIR) reached 44 per cent last year, 13 per cent lower than in 2017, while its return on asset (ROE) rose to 22.5 per cent, making VIB one of the banks with the highest ROE.

According to VIB, retail banking business remained important with revenue growing by 90 per cent. Its wholesale banking and treasury banking businesses also gained profit hikes of 22 and 49 per cent, respectively.

As of December 31, 2018, VIB’s total assets topped nearly VND140 trillion ($6 billion). The bank’s lending balance reached VND98.93 trillion, up 17.5 per cent year-on-year. Its retail lending balance witnessed a remarkable rise of 48 per cent to VND74.3 trillion.

“Thanks to this impressive growth rate, VIB surpassed many big joint stock banks in terms of retail lending and affirmed its position as one of the joint stock banks with high retail lending market share,” the bank said in a statement.

Late last year, VIB received approval from the State Bank of Viet Nam (SBV) to apply a capital adequacy ratio following Basel II standards.

Basel II is the second edition of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on banking supervision.

Basel II comprises minimum capital requirements, supervisory reviews and market discipline. It aims to enhance competition and transparency in the banking system and make banks more resistant to market changes.

VIB’s capital adequacy ratio (CAR) under Basel II was 10.2 per cent in 2018, the bank said. — VNS