Viet Capital Bank reports surge in profits in 1st half

Tuesday, Jul 27, 2021 07:28

A Viet Capital Bank transaction office. The bank achieves a five-fold growth in pre-tax profits in the first half of the year. — Photo courtesy of the bank

Viet Capital Bank reported a five-fold growth in pre-tax profits in the first half of the year to VND337 billion (US$14.7 million).

As of June 30 the lender had total assets of VND66.7 trillion ($2.9 billion), a year-on-year increase of 25 per cent, and deposits and outstanding loans of nearly VND61 trillion and VND44 trillion, up 25 per cent and 24 per cent.

Its net interest income grew by 43 per cent while earnings from services were up 58 per cent thanks to card and insurance activities.

It has fully repurchased the Vietnam Asset Management Company's bonds, and so the provisioning level has become much higher than earlier in the year.

With its focus on optimisation of operational efficiency, its operating expenses only increased by 16 per cent, much lower than the revenue growth rate.

It is expected that after provisions for bad debts, profit before tax will be 80 per cent of the full-year target.

While opening new branches, the bank is also focusing on developing digital banking to enable customers to do business swiftly and conveniently.

It has launched a new digital banking app called ‘digimi’ with some outstanding features to replace the earlier Viet Capital Mobile banking app, which has caused the number of customers using its e-banking services to increase by 20 per cent a month, and the number of customers opening accounts and making deposits online has also increased sharply.

To support customers affected by the COVID-19 pandemic, it has been offering loans at interest rates that are up to 2 per cent lower than normal.

It waives fees for money transfers to the Government’s COVID-19 vaccine fund. — VNS

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