VPBank's 3-quarter profit increased 67% year-on-year

Three-quarters of the way through 2024, VPBank recorded a 67% increase in consolidated pre-tax profit over the same period, with contributions from the entire ecosystem.

VPBank's 9-month business results picture has a significant mark of FE Credit when the 3rd quarter reported a profit of nearly 300 billion VND - Photo: VPBank

VPBank maintains stable credit growth, promotes debt collection activities, and continues to strictly control asset quality.

In 9 months, VPBank's consolidated pre-tax profit reached nearly 13.9 trillion VND

At the end of the first 9 months of the year, VPBank's consolidated pre-tax profit reached nearly VND 13.9 trillion, an increase of more than 67% over the same period in 2023. The parent bank contributed more than VND 13 trillion, while subsidiaries continued the growth momentum from previous quarters.

The bank's consolidated operating income (TOI) increased by nearly 23% in the first nine months to over VND44.6 trillion. Individual banks recorded an increase of over 26% to VND32 trillion, with interest income being the main growth driver.

The parent bank's cost-to-operating income ratio (CIR), meanwhile, was optimized at 24% thanks to comprehensive process automation and digitalization.

VPBank's 9-month business results have a significant mark from FE Credit, which reported a profit of nearly VND300 billion in the third quarter. This is the result of the consumer finance company's strong restructuring process, prioritizing the selection of quality customer segments, promoting debt collection, and refining its operating apparatus.

Notably, efforts to promote debt collection and apply digital technology throughout 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 parent bank's bad debt (NPL) ratio according to Circular 11 is maintained below 3% as prescribed by the State Bank of Vietnam (SBV).

At the end of the third quarter, outstanding credit including customer loans and corporate bonds of individual banks reached more than VND581 trillion, up more than 10% compared to the beginning of the year and higher than the industry average (8.5%). Credit was disbursed to diverse segments and industries in the economy, with key products such as auto loans, credit cards, etc.

Along with the parent bank's credit growth, core credit from the consumer finance segment of FE Credit continued to maintain growth momentum compared to the end of the year, with disbursement sales in the first 9 months of 2024 reaching the same level as the whole year of 2023, showing that customers' spending needs are gradually returning.

Accompanying the Government and the State Bank of Vietnam to support people and businesses affected by the recent storm Yagi, VPBank has implemented a program to reduce loan interest rates by up to 1%, aiming to restore production and business and stabilize the macro-economic situation.

Safe and efficient operation

In the third quarter, VPBank and the Japan Bank for International Cooperation (JBIC) signed a credit contract worth up to 150 million USD - Photo: VPBank

To meet the demand for stable loan growth, VPBank's customer mobilization and valuable papers are regulated in line with credit growth, aiming to improve balance sheet efficiency.

The bank continues to optimize its customer mobilization portfolio and diversify its 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 USD 150 million to finance renewable energy and power transmission projects in Vietnam, contributing to realizing the national goal of reducing net emissions to zero by 2050.

Accordingly, individual banks' capital costs continued to be optimized at 4.1% in Q3 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 State Bank's regulations.

The capital adequacy ratio (CAR) of the consolidated bank reached 15.7%, continuing to lead the industry, creating a strong growth foundation in the coming time.

Optimize opportunities, take advantage of strengths

With a broad vision, in the third quarter, VPBank officially opened its first flagship branch in Ho Chi Minh City, becoming a pioneer for future banking trends in Vietnam in the digital era and supporting the bank on its path to conquering the international market.

The investment strategy in a new branch model, with a chain of utilities, technology, products and services of outstanding international standards, is expected to meet the diverse needs of many different customer groups, helping to enhance the experience, retain existing customers and attract potential customers, including international customers from the emerging FDI segment.

Seizing the opportunity from the strong FDI wave flowing into Vietnam, while optimizing the cooperative relationship with strategic partner SMBC, the decision to expand operations to the segment of large corporate customers, multinational corporations and FDI enterprises is one of the bank's strategic steps.

After nearly 2 years of operation, VPBank has added a portfolio of FDI customers of more than 500 enterprises, and a large scale of human resources of each enterprise that can become potential individual customers of the bank in the future.

The third quarter witnessed the cooperation between VPBank and Lotte C&F Vietnam, which became a premise for both sides to exploit their mutual strengths and take advantage of the opportunities brought by the strong purchasing power of a market of nearly 100 million people.

While VPBank provides a wide range of financial solutions, products and services, along with abundant resources for businesses in the group's ecosystem to develop, Lotte C&F helps connect and introduce VPBank's product chain to member companies, supporting the bank to expand its operating network and increase market share in the FDI customer segment.

In addition, the bank has become a strategic partner of electric vehicle manufacturer BYD in Vietnam, providing credit packages for car buyers with preferential loan policies and streamlined loan mechanisms.

VPBank's brand value in 2024, according to the latest assessment by Brand Finance, increased by nearly 6% compared to 2023, reaching 1.35 billion USD, putting the bank in the Top 10 most valuable brands in Vietnam in 2024.

Source: https://tuoitre.vn/loi-nhuan-3-quy-cua-vpbank-tang-67-so-voi-cung-ky-20241028220204337.htm