VIB’s Q1 profit skyrockets nearly 230%

Friday, Apr 20, 2018 16:01

The shareholders also approved the bank’s plan to debut on HCM Stock Exchange within this year. — Photo courtersy of VIB

Vietnam International Commercial Joint Stock Bank (VIB) recorded a significant increase of nearly 230 per cent in pre-tax profit, earning more than VNĐ 518 billion (US$23 million), in the first quarter of this year.

The figure also exceeded the bank’s previously set quarterly target by 34 per cent, according to its preliminary first quarter 2018 business results released on Wednesday.

During the period, the bank achieved a 49 per cent income hike due to a strong increase in the net interest income and other non-interest income, which saw respective growth of 52 per cent and 125 per cent.

As per the results, until the end of March 2018, the bank’s total credit, including corporate bonds, surged by 6.2 per cent compared with last year to nearly VNĐ90 trillion, in which lending was more than VNĐ84 trillion.

From January to March, the bank controlled non-performing loans ratio at 2.5 per cent, which remained unchanged since the end of last year, while the ratio of non-performing loans from new lending for the period was quite low at 0.7 per cent.

Meanwhile, the bank’s loan to deposit ratio and its ratio of short-term funds used for medium- and long-term loans were 71.9 per cent and 41.2 per cent, respectively, in the three-month period, meeting the requirements of the State Bank. Its capital adequacy ratio reached 12.5 per cent.

According to the results, the bank’s retail banking income increased by 101 per cent year on year in the first quarter of this year, with its retail banking products, such as mortgages, auto loans, bank assurance and cards, posting strong growth rates.

At the same time, VIB also boosted its investment in digital banking. The bank’s MyVIB continued to be named the most favourite mobile banking app in the country.

“With the first quarter’s positive performance, VIB expects its pre-tax profit to exceed the VNĐ2 trillion target by 20 per cent to 30 per cent this year,” the bank said in a statement.

Earlier in March, VIB’s shareholders approved the proposal of 36 per cent dividend payment, including 5 per cent and 31 per cent payment by cash and stocks, respectively. They also passed the proposal to offer and issue new shares to investors in the form of private placement, for up to 10 per cent of the charter capital.

The shareholders also approved the bank’s plan to debut on HCM Stock Exchange within this year. — VNS

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