Viet Nam Prosperity Joint Stock Commercial Bank (VPBank) posted a pre-tax profit of more than VND8.1 trillion (US$356.6 million) in 2017, registering a 65 per cent year-on-year increase.

VPBank Finance Company Ltd (FE Credit) accounted for 51 per cent of the bank’s total profit in 2017.

VPBank on Monday announced its financial report for 2017 showing it had outstanding results in all the basic criteria and sustainable and effective growth, as a result of its strategy to focus on retail banking.

The bank’s total assets last year reached nearly VND278 trillion, increasing 21 per cent from the previous year.

Customer lending rose by 24 per cent to VND196 trillion in 2017, and the deposit was VND200 trillion, up 16 per cent from the previous year.

Its turnover growth rate in 2017 was VND25 trillion, posting a 48 per cent year-on-year rise. Of this, the net profit rose by 36 per cent and net services by 70 per cent. It used more than VND8 trillion for its risk prevention fund.

In recent years, VPBank’s growth rate has been higher than the average level in the market. Its average total assets rose by 22 per cent a year since 2012.

The bank’s leaders said the outstanding loans of FE Credit accounted for 23 per cent of its total integrated assets.

With its listing on HCM City Stock Exchange (HOSE) in 2017, VPBank’s charter capital and ownership capital rose to VND15.7 trillion and VND29.6 trillion, respectively, up 70 per cent from the previous year.

The positive growth has created a firm foundation for the bank, both in mid- and long-term periods, contributing to further development.

The bank’s growth quality was also seen through a return on equity (ROE) of 27.47 per cent and a return on assets (ROA) of 2.54 per cent.

The business results have helped the bank complete its target to become one of the largest joint stock commercial banks in Viet Nam in the 2012-17 period.

Its strategy of focussing on retail banking products and services, which was launched five years ago, brought the achievements to the bank.

The turnover from market segments of individuals, consumption finance and small- and medium-sized enterprises accounted for 80 per cent of its total turnover.

Its most bright point was that it has maintained high quality of growth owing to flexible business strategies and effective risk management system, though it has focused on segments with high risks.

VPBank has applied effective solutions to collect debts totalling VND3 trillion in 2017. Its bad debt was kept at 2.33 per cent.

The bank said it would continue to maintain its retail banking strategy in 2018, specially focusing on digitalisation of financial products and services to better meet with customers’ demand and create a new growth momentum.

It will also enhance association with fintech companies and strategic partners to create a diversified financial ecosystem, which could provide better products to all market segments. — VNS