The bank achieved pre-tax profit of 4,600 billion, return on equity (ROE) of 21%, in the top group of the industry.
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VIB announces first 6-month business results
Capital mobilization growth is higher than the industry average, credit growth has been positive since the second quarter. As of June 30, VIB's total assets reached more than VND431,000 billion, up 5% compared to the beginning of the year. Capital mobilization increased by 5%, higher than the industry average (1.5%). Outstanding credit by the end of the second quarter reached nearly VND280,000 billion, up 5% compared to the beginning of the year. Credit growth is on the path to recovery, when the first quarter increased by only 1% but the second quarter increased by 4% thanks to the optimization of input capital costs, reducing lending interest rates, in parallel with the implementation of a series of new, creative and competitive retail products, creating momentum for growth in the last 6 months of the year. Especially, loan packages for townhouses and apartments with interest rates of only 5.9% - 6.9% - 7.9% fixed for 6 - 12 - 24 months, principal exemption for 48-60 months; and other bank debt repayment loans with interest rates of only 5.5% - 6.5% - 7.5% fixed for 6 - 12 - 24 months, support for early disbursement, simple and flexible process.
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VIB's best interest rate loan package on the market
As one of the few banks ranked by the State Bank in the highest group in the industry, VIB is granted a credit limit of over 16% in 2024 and is currently one of the banks with the highest credit growth potential in the industry in the last 6 months of the year. Safe risk management, lowest concentrated risk in the industry In the context of improved but still weak credit demand, VIB maintains a cautious strategy, ensuring a balance between growth targets, credit quality and operational efficiency. In addition to more positive credit growth compared to the same period, asset quality has also improved with the bad debt ratio remaining flat at 2.4%. Group 2 debt decreased by nearly VND 2,900 billion in the second quarter and decreased by 17% compared to the beginning of the year. VIB continues to be one of the banks with the lowest concentrated credit risk in the market with retail loans accounting for over 82% of the total loan portfolio. Of which, over 90% of retail loans are secured by assets, mainly housing and land with full legal documents and good liquidity. VIB also has the lowest corporate bond investment balance in the industry and accounts for only 0.2% of total outstanding credit, all of which are in the production, trade and consumption sectors. Notably, VIB is one of the few banks with a very low balance of interest and fee receivables, at about VND 2,600 billion, down 28% compared to the end of 2023 and accounting for only about 0.6% of total assets compared to many banks, this ratio is at 1% -2%, in some cases up to 3%. This reflects the quality of revenue recorded on the financial statements and the cautious nature of VIB's retail credit accounting. Always a pioneer in complying with and applying international governance standards, VIB's safety management indicators are at an optimal level, in which the Basel II capital adequacy ratio (CAR) is 11.8% (regulation: over 8%), the loan-to-deposit ratio (LDR) is 72% (regulation: under 85%), the ratio of short-term capital sources for medium and long-term loans is 26% (regulation: under 30%) and the Basel III net stable capital source ratio (NSFR) is 117% (Basel standard: over 100%). Revenue growth is positive, risk provisioning is prudent, ROE is 21%. After the first 6 months of the year, VIB achieved total revenue of VND 10,358 billion, up 1% over the same period, in which net interest income decreased by 8% and non-interest income increased by 50%. Due to the focus on the high-quality customer segment with good collateral, along with the launch of many competitive retail product packages, there was a slight decrease in net interest margin (NIM), however, VIB still maintained a positive NIM at 4.2%. Non-interest income reached nearly VND 2,400 billion, a positive growth compared to the same period and contributed to 22% of total revenue. Notably, income from write-off recovery contributed VND 500 billion, an increase of 2.7 times compared to the same period, foreign exchange activities also contributed an increase of VND 330 billion. Fee income increased by 9% with 2 main products: Credit Card and Insurance. VIB continues to proactively increase its reserve buffer with an average risk provision of about VND 1,000 billion/quarter, an increase of 36% compared to the first 6 months of 2023 but a decrease of 38% compared to the last 6 months of 2023. In summary, VIB's pre-tax profit in the first 6 months of the year reached more than VND 4,600 billion. ROE remained at 21%, in the top group of the industry. Dividend and bonus shares payment of 29.5% in 2024 VIB has completed 2 cash dividend payments with a total dividend equivalent to 12.5% ​​of charter capital. Currently, VIB is implementing procedures to pay 17% in bonus shares to existing shareholders and 11 million ESOP bonus shares to nearly 2,000 employees in the third quarter.
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VIB pays 29.5% cash dividend and bonus shares 2024
During the period, VIB successfully held an extraordinary General Meeting of Shareholders to approve the Charter, including the regulation that the maximum ownership ratio of foreign investors is 4.99% of charter capital.

Doan Phong