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Photo: VIB

Outstanding credit growth and capital mobilization

As of September 30, 2024, VIB's total assets reached more than VND 445,000 billion, up 9% compared to the beginning of the year, of which outstanding credit reached more than VND 298,000 billion, up nearly 12%, higher than the industry average of 9%. In the third quarter alone, VIB's credit growth was nearly 7%, making it one of the retail banks with the best credit growth in the industry. VIB's capital mobilization in the first 9 months of the year increased by 8%, nearly double the industry average, meeting capital needs for credit activities.

Interest rate support, expanded investment, prudent provisioning

After the first 9 months of the year, VIB achieved total revenue of VND15,300 billion, of which net interest income decreased by 9% compared to the same period. With the orientation of focusing on high-quality customer segments with good collateral, along with the launch of many competitive interest rate retail product packages, there was a decrease in net interest margin (NIM), however, VIB still maintained a positive NIM, at 4%.

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Photo: VIB

Mr. Dang Khac Vy - Chairman of the Board of Directors of VIB said that the bank has strongly reduced lending interest rates for all customer segments to increase stimulation of both social supply and demand, supporting economic growth. In addition, VIB leaders also said that banks also need to implement safe and strong credit growth to ensure the banking industry can develop healthily and sustainably.

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Photo: VIB

VIB's non-interest income in the first 9 months of 2024 reached VND 3,500 billion, up 5% and contributing to 23% of the bank's total revenue, operating expenses increased by 13% over the same period from activities: investment in people, opening new branches, investment in technology, digital banking and marketing. VIB's cost efficiency ratio (CIR) temporarily increased to 36%, but is improving compared to the previous quarter as cost optimization initiatives are being strongly implemented along with new branches starting to operate effectively.

In the first 9 months, VIB continued to maintain a new prudent policy with a provision of about VND3,230 billion, up 2% and improved coverage ratio compared to the same period. In addition, in the context of improving asset quality, provisions in the third quarter decreased by more than 25% compared to the same period. In summary, VIB's pre-tax profit after the first 9 months of the year reached VND6,600 billion, down 21% compared to the same period. Return on equity (ROE) reached about 19%.

Improved asset quality, lowest industry concentration risk

VIB's Group 2 debt has decreased by more than VND4,000 billion, equivalent to a decrease of 27%, and the reserve buffer has increased by 27% compared to the beginning of the year. VIB's bad debt ratio as of September 30, 2024 is 2.67%.

Safety management indicators are at an optimal level, in which the Basel II capital adequacy ratio (CAR) is 11.5% (regulation: over 8%). The loan-to-deposit ratio (LDR) is at 75% (regulation: under 85%). The ratio of short-term capital sources for medium and long-term loans is 26% (regulation: under 30%). The Basel III net stable capital source ratio (NSFR) is 111% (Basel III standard: over 100%).

Building a reputable brand, innovative products

In early October 2024, VIB was awarded the “Excellent Asian Enterprise 2024” award by the Asian Enterprise Association, honoring its outstanding retail financial products and solutions, modern digital banking applications; transparent corporate governance and pioneering the application of international standards.

Along with that, for the first time in Vietnam, VIB has launched a personalized card design service based on demand with the support of Gen AI technology.

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Photo: VIB

VIB continues to make a strong impression as a leading retail bank brand and affirms its goal of leading the card trend with the program “Anh Trai Say Hi”. The program recorded more than 10 billion views on all platforms and 100% of its episodes were in the Top Youtube Trending.

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Photo: VIB

Responsibility and contribution to the community

During more than 28 years of establishment and development, VIB has always actively contributed to community development through economic and social activities, especially in budget contributions and compliance with international standards.

VIB has just entered the top 4 private banks with the largest budget contributions and ranked 11th among private enterprises with the largest budget contributions in 2023 with nearly 3,300 billion VND.

In the first 9 months of the year, VIB contributed 15 billion VND to the national emulation movement; joined hands to eliminate temporary and dilapidated houses; spent 5 billion VND to support recovery from storm Yagi and 7 billion VND to sponsor student scholarships, gratitude programs and promote culture, education, society...

Doan Phong