Vietnam International Bank (VIB) has announced positive results for the first quarter, with a return on equity of 30 per cent and a strong balance sheet.

The bank's first-quarter profit reached VND2.7 trillion (US$114.93 million) in Q1, maintaining its top business performance in the industry.

Total operating income surpassed VND4.9 trillion, a yearly increase of over 19 per cent. The bank maintained a highly effective net interest margin at 4.6 per cent amid fluctuations in both deposit and lending rates.

Well-controlled operating expenses helped the cost-of-revenue ratio drop significantly to only 32 per cent in Q1 compared to 35 per cent in the same period last year. As a result, the bank's pre-provision profit hit over VND3.36 trillion, up 26 per cent over the same period last year.

According to VIB, its total assets topped VND357 trillion at the end of March, up 4.2 per cent compared to the beginning of the year.

At present, interest rates are still high amid the dampened demand for housing, consumption, and investment. As a result, VIB's credit growth decreased slightly by 1.2 per cent, the bank said.

However, the bank maintained strong business momentum in March, contributing to a positive growth outlook for the second quarter, it added.

By the end of March, VIB's mobilised capital had reached more than VND248 trillion, including customer deposits and valuable papers.

In March, the International Finance Corporation (IFC) approved a five-year loan of $100 million for VIB. The agreement, expected to be signed in May, will help VIB increase disbursements to the housing sector. With this loan, VIB's overall credit limit from foreign organisations like the IFC topped $1.5 billion.

The bank's 2023 General Meeting of Shareholders (AGM) approved the dividend payment plan at 35 per cent, including a 15 per cent cash dividend and a 20 per cent stock dividend.

In March, the bank completed the payment of a 10 per cent cash dividend. It is in the process of paying the remaining 5 per cent cash dividend and 20 per cent bonus shares to shareholders and 7.6 million bonus shares for employees. — VNS