Customers conduct transactions at a Vietbank branch in HCM City. — Photo courtesy of the bank
Vietbank has released its business results for the first six months of the year, with pre-tax profit reaching VNĐ369 billion (US$15.5 million), similar to the same period in 2022.
As of June 30, its total assets were at nearly VNĐ115.7 trillion ($4.8 billion), up 3.9 per cent from the beginning of the year, reaching 102 per cent of target. Its asset portfolio structure continues to be optimised towards increasing the proportion of profitable assets.
Total loans outstanding were worth VNĐ69.2 trillion ($2.9 billion), a year-on-year increase of 7.7 per cent, ensuring compliance with the credit growth limit set by the State Bank of Vietnam.
Its bad debt ratio was strictly controlled at below 3 per cent as regulated.
Total deposits from customers reached VNĐ89 trillion ($3.7 billion), up 9.7 per cent compared to the beginning of the year, which was in line with the bank’s credit growth rate. Liquidity ratios were well ensured.
Total operating income was at VNĐ1.1 trillion ($46.4 million), mainly driven by net interest income that accounted for 81 per cent or VNĐ919 billion.
Provision expense was reduced by 60 per cent over the same period last year to VNĐ68 billion as the bank accelerated the collection and handling of bad debts and controlled the quality of debts incurred during the period.
Vietbank got approval from the SBV to increase its charter capital by a maximum of VNĐ1 trillion ($42.2 million) through the issuance of shares to existing shareholders in line with its charter capital increase plan approved by shareholders.
The additional capital will be used for its business activities, investing in bonds and profitable business activities and ensuring compliance with safety ratios in operations.
Going forward, Vietbank will continue to maintain its deposit and lending interest rates at reasonable levels, while focusing on providing capital for priority sectors.
In addition, the bank continues to implement flexible business methods, enhance the application of digital technology to increase customer experience and satisfaction, improve the quality and efficiency of human resources, optimize capital efficiency, enhance risk management and debt collection, and so on, to achieve stable, safe and effective growth.
The bank won a number of awards in the first half of the year for its efforts in business and community activities, including the Top 10 Gold Quality Services for Consumer Benefits 2023, Top 50 Vietnam Best Growth 2023, Top 10 Competitive Brands 2023, and Outstanding Bank for the Community. — VNS