Moody’s Investors Service, one of the world’s leading credit ratings agencies, has upgraded the credit rating outlook of Vietnam International Bank (VIB)’s local currency deposits and issuer ratings to “positive”, from its previous level of "stable".

According to the report issued by Moody’s, VIB continues to be included in the group of banks with the highest credit rating in the local banking industry. This signals Moody’s positive assessment of developments in the business environment in general and performance of the banking industry in particular.

In 2016, VIB recorded significant achievements thanks to its efficient, safe and sustainable development, and focus on the sustainable source of revenue, cost optimisation, and efficient risk management.

The bank’s pre-tax profit last year experienced a year-on-year rise of 7 per cent to VND702 billion (US$31 billion) while its total assets rose sharply to VND104.5 trillion, surging 24 per cent compared to 2015, and 16 per cent higher than the target set.

The bank’s loan to deposit ratio was 65.6 per cent while its short-term deposit over medium- and long-term loan ratio reached 47.1 per cent, which are all higher than relevant mandatory ratios set by the State Bank of Viet Nam.

At its annual general shareholders meeting (GSM) last month, the bank approved a 44.6 per-cent dividend distribution rate based on its charter capital, including 5 per cent in cash and 39.6 per cent in bonus shares.

The bank’s management board also proposed a plan of mobilising capital with a maximum amount of VND7 trillion on the secondary market for up to 10 years with a view to strengthening its capital adequacy ratio (CAR) and other safety ratios and better satisfying business activities.

The bank aims to earn pre-tax profit of VND750 billion in 2017, 7 per cent higher than last year’s figure. It also targets VND120 trillion in total assets, up 15 per cent year-on-year. — VNS