VIB leaders explain why credit increased sharply but profit decreased by 16%

Mr. Dang Khac Vy, Chairman of VIB Board of Directors - Photo: AH

VIB says "invest for long-term benefits"

At the shareholders' meeting held today, March 27, Mr. Dang Khac Vy, Chairman of the Board of Directors of Vietnam International Bank (VIB), said that in 2024, the bank achieved a credit growth rate of nearly 22%, 1.5 times higher than the industry average. However, VIB's profit decreased by 16%.

Explaining this, Mr. Dang Khac Vy said that the bank accepts sacrificing short-term benefits to invest in long-term benefits for customers and shareholders.

In recent times, the bank has invested heavily in advanced product and service solutions to increase benefits for customers. VIB has also invested heavily in digitalization and technology to lay the foundation for long-term development.

Along with that is investing in building sustainable brands and investing in good customer segments to reduce risks, along with making radical provisions.

VIB is the bank that sponsors a series of popular music shows such as The Masked Singer and Say Hi Brother. These shows aim to connect with Millennials and Gen Z - the bank's important customer segments.

This strategy not only helps VIB increase brand awareness but also promotes growth in card business activities.

By the end of 2024, the number of VIB credit cards in circulation will reach more than 865,000 cards, spending via VIB credit cards will increase more than 7 times after 6 years, from about 700 million USD in 2019 to 5 billion USD in 2024. Currently, VIB is leading the market share of Mastercard card spending and ranked 3rd in the whole market with an average growth rate of nearly 50%/year in 6 years.

VIB's customer deposits in 2024 will exceed VND200,000 billion, up 17%, nearly double the industry average. Of which, low-cost deposit products increased by 35% compared to the beginning of the year, contributing to VIB's strategy of optimizing capital costs and net interest margin (NIM).

Regarding credit risk management, VIB limits credit granting to high-risk business sectors according to the recommendations of the State Bank. Accordingly, VIB maintains zero outstanding debt for many years with BOT loans, corporate bond guarantees, and corporate bond investments.

Planned pre-tax profit in 2025 is over 11,000 billion VND

In 2025, VIB set a target of pre-tax profit of VND 11,020 billion, an increase of 22% compared to the previous year; dividend payment at a rate of 21% including cash dividends and bonus shares, which has been approved by the shareholders' meeting.

Mr. Ho Van Long, Deputy General Director of VIB, informed that the bank will pay cash dividends at a rate of 7%, issue bonus shares to existing shareholders at a rate of 14% and issue 7.8 million ESOP bonus shares to employees. Thus, VIB plans to spend more than VND2,085 billion to pay cash dividends to shareholders.

In addition, VIB's Board of Directors also proposed a plan to increase charter capital through the issuance of bonus shares to existing shareholders and employees. In total, after completing the above plans, VIB's charter capital will increase from over VND29,700 billion to over VND34,000 billion.

During the discussion at the congress, VIB leaders said that from tomorrow, March 28, the bank will launch a VND45,000 billion loan package to buy townhouses, with interest rates of 5.9% - 6.9% - 7.9% for fixed interest rates of 6 months, 12 months, 24 months. In particular, a loan of VND1 billion only requires a principal payment of VND1 million per month to help first-time home buyers, investors, young families, and help customers access capital more easily.

Source: https://tuoitre.vn/lanh-dao-vib-ly-giai-viec-tin-dung-tang-manh-nhung-loi-nhuan-lai-giam-16-20250327164933055.htm