Retail, SME and FDI will lead Q4 growth at VPBank

VPBank continues to focus on growth in the two traditional segments of Individual Customers and SMEs, along with the emerging segment of FDI, in the fourth quarter, to take advantage of the heat of the market in the last months of the year, thereby maximizing revenue for the bank.

Growth drivers Sharing with investors in a recent meeting to update business results for the third quarter, VPBank's board of directors said that the bank will continue to stick to its business orientation, focusing on traditional and emerging growth drivers, including retail, SME and FDI, to optimize market opportunities and expand revenue sources for the bank in the last months of 2024. Specifically, for the retail credit segment, the bank expects a stronger recovery of the real estate market in the coming time, when the supply of project houses is expected to increase rapidly thanks to a clear legal corridor that helps reduce pressure on housing prices. Along with the current low interest rate level, people's demand for home loans is expected to grow again, improving the situation of slow growth in home loans in the recent past. Along with that, the purchasing power that tends to warm up during the year-end holiday season will become an important factor supporting the growth of the bank's unsecured lending segment, with credit cards being the main product. At the end of the third quarter, VPBank's credit card segment recorded a growth of 7.5% compared to the beginning of the year, with total spending in the first 9 months increasing by 16% over the same period. In parallel with the retail segment, VPBank will promote the exploitation of the traditional SME segment with products tailored to the needs of businesses. The bank said it will continue to improve products, digitize processes, and develop payment gateways in an effort to enhance customer experience. In particular, VPBank will expand the network of Micro SME centers in Hanoi and Ho Chi Minh City in the coming time to attract new customers and better meet the needs of existing customers. In addition, for the Upper SME segment, the bank will develop and standardize lending programs according to the characteristics of each sector in general, such as industrial park real estate, green credit, etc., and key industries such as rice, seafood, medical equipment, etc. In the first 3 quarters of the year, VPBank's SME segment recorded a loan growth of nearly 24% compared to the end of 2023, reflecting the increased capital demand of private enterprises in the economy, serving investment activities, expanding production and business, etc. VPBank's remaining growth driver is the FDI segment that has only been operational for nearly 2 years. This segment will be fully exploited in the medium and long term, taking advantage of the strategic relationship with partner SMBC and VPBank's existing ecosystem to optimize business opportunities, increase market share and strengthen the bank's brand. After nearly 2 years of operation, the bank has built a portfolio of FDI customers of more than 500 enterprises, a mobilization scale of more than 7.3 trillion VND and credit of more than 3.2 trillion VND, and a file of potential individual customers brought by each of these FDI enterprises when becoming customers of VPBank.

Available platform Assessing that the market still has some difficulties and challenges, especially for the real estate market with uneven recovery among major cities and provinces, VPBank's board of directors assessed that the bank's credit growth may be slower than the 25% target at the beginning of the year. However, with improved macroeconomic indicators (retail and consumer service revenue in 10 months increased by 8.5% over the same period, import-export turnover of goods increased by 11.8% over the same period...), along with the government's support policies to accelerate the recovery of the economy, the bank believes that credit demand will return stronger than before, meeting increased consumer demand and investment in production and business in the last quarter of the year and in 2025. In the first 9 months of the year, outstanding credit including customer loans and corporate bonds of individual banks increased by more than 10% compared to the beginning of the year, reaching more than VND 581 trillion, higher than the industry average (8.5%), flowing into various segments and industries of the economy. To meet disbursement needs, the bank continues to optimize its customer mobilization portfolio and diversify international medium- and long-term capital sources. In the third quarter, VPBank and the Japan Bank for International Cooperation (JBIC) signed a credit contract worth up to 150 million USD to finance renewable energy and power transmission projects in Vietnam, contributing to the realization of the national goal of reducing net emissions to zero by 2050. The cost of capital of individual banks, accordingly, continued to be optimized at 4.1% in the third quarter and decreased by more than 2% compared to the whole year of 2023. Liquidity safety ratios such as LDR ratio (82.3%), short-term capital ratio for medium and long-term loans (24.6%) are all at good levels compared to the regulations of the State Bank. VPBank's consolidated pre-tax profit for the first 9 months reached nearly 13.9 trillion VND, an increase of more than 67% over the same period in 2023. Of which, the parent bank contributed more than 13 trillion VND. with interest income as the main growth driver. Efforts to promote debt collection and apply digital technology throughout have also brought sweet fruits to the whole group when the collection from consolidated risk-handled debt reached more than VND 3.2 trillion in 3 quarters, an increase of more than 90% over the same period. Thanks to the application of diverse bad debt handling measures, the bad debt ratio (NPL) according to Circular 11 of the parent bank was maintained below 3% according to the regulations of the State Bank. The capital adequacy ratio (CAR) of the consolidated bank reached 15.7%, continuing to lead the whole industry, creating a strong growth foundation in the coming time. Source: https://thanhnien.vn/ban-le-sme-va-fdi-se-dan-dat-tang-truong-quy-4-tai-vpbank-185241111152050667.htm