VPBank posts record pre-tax profit

Thursday, Feb 16, 2017 16:57

The VPBank reports positive business results in 2016 with record pre-tax profit. — Photo vpbank

Viet Nam Prosperity Bank Joint Stock Bank (VPBank) reported integrated pre-tax profit of VND4.9 trillion (US$218 million) in 2016.

This represents a year-on-year increase of 53 per cent, a record since its establishment.

VPBank on Thursday announced its impressive businesses results for 2016. Accordingly, its net income last year reached VND15.1 trillion, or VND4.5 trillion higher than the previous year.

It said the increasing collection of VND715 billion (up 180 per cent) from resolving debts contributed a significant amount to the high pre-tax profit.

The bank’s total assets in 2016 reached nearly VND226 trillion, posting an increase of 16.5 per cent from the previous year.

Its total capital mobilisation was VND172 trillion or 13 per cent higher than that of 2015. The rate of long-term deposits saw a significant increase from 40 per cent in 2015 to 50 per cent last year.

Its capital adequacy ratio remained at 13 per cent, which was higher than nine per cent stipulated by the State Bank of Viet Nam.

The bank said its total costs for operation in 2016 rose only by 16 per cent from the previous year as it has taken drastic measures to save spending and maximise effectiveness.

Its loans to customers reached 17.5 per cent, with strong growth in the retail sector, including individuals, small-and-medium sized enterprises.

In addition, the loans to real estate sector were reduced from 19.5 per cent in 2015 to 15.8 per cent last year. Its bad debt rate was also reduced from 2.43 per cent to 2.03 per cent in 2016.

VPBank is the only bank in the country awarded the National Brandname for three consecutive years, besides receiving many international awards.

The bank is among the top seven banks in Viet Nam. — VNS

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