VIB: 9-month profit reached 6,600 billion VND, credit increased by 12%, exceeding industry average

Vietnam International Bank (VIB) announced its business results for the first 9 months of 2024 with stable revenue and efficiency, outstanding credit and mobilization growth compared to the industry, improved asset quality, and a strong and safe balance sheet.

Credit growth and capital mobilization surpass the industry average 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.

Profits decreased due to interest rate support, expansion investment and 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 retail product packages with competitive interest rates, there was a decrease in net interest margin (NIM), however, VIB still maintained a positive NIM, at 4%.

On September 21, at the Government Standing Committee meeting working with joint stock commercial banks on solutions to contribute to the country's socio-economic development, VIB Chairman of the Board of Directors - Mr. Dang Khac Vy 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 that the banking industry can develop healthily and sustainably. VIB's non-interest income in the first 9 months of the year 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, coming from investment in people, opening new branches, investing 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 and new branches are starting to operate effectively. In the first 9 months of the year, VIB continued to maintain a cautious policy with a provision of about VND 3,230 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 VND 6,600 billion, down 21% compared to the same period. Return on equity (ROE) reached about 19%. Improved asset quality, lowest concentration risk in the industry, safe risk management VIB's Group 2 debt has decreased by more than VND 4,000 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 75% (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 111% (Basel III standard: over 100%). Building a prestigious brand, outstanding innovative products and leading reality TV shows In early October 2024, VIB was awarded the "Asia's Excellent Enterprise 2024" by the Asian Enterprise Association, honoring its outstanding retail financial solutions and products, modern digital banking applications, transparent corporate governance and pioneering the application of international standards. Along with that, for the first time in Vietnam, VIB launched a personalized card design service according to needs with the support of generative artificial intelligence (Gen AI) technology.

VIB continues to make a strong impression as a leading retail banking brand and affirms its goal of leading the card trend with the program "Say Hi" with more than 10 billion views on all platforms and 100% of episodes in the Top YouTube Trending.

Responsibility and contribution to society, community and banking industry 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 VND 3,300 billion. In the first 9 months of the year, VIB contributed VND 15 billion to the national emulation movement to join hands to eliminate temporary and dilapidated houses, VND 5 billion to support overcoming storm Yagi and VND 7 billion to sponsor student scholarships, gratitude programs and promote culture, education and society. Source: https://thanhnien.vn/vib-loi-nhuan-9-thang-dat-6600-ti-dong-tin-dung-tang-12-vuot-trung-binh-nganh-185241022165627105.htm