The Vietnam International Bank (VIB) has just published the document of the Annual General Meeting of Shareholders (GMS) in 2022, which is slated to be held on March 16.

The bank sets out its strategic development orientation for 2022 to 2026, and proposes the GMS to approve the dividend payment plan, this year's business plan and some other key issues.

Targeting over 30 per cent profit growth, top ROE in the banking industry

VIB's Board of Directors will submit the profit plan and business targets in 2022 to the GMS. Specifically, VIB has set a goal of reaching VND10.5 trillion in profit, an increase of 31 per cent compared to 2021.

It also targets VND402.5 trillion and VND265.6 trillion in total assets and total outstanding credit balance, respectively. Of which, the growth rate of the total outstanding credit balance can be adjusted depending on the allowable limit of the State Bank of Viet Nam.

The bank’s funding is also expected to reach VND280.6 trillion, up 30 per cent year-on-year.

In 2022, VIB will continue to promote the growth of revenue from the traditional credit segment to products that bring non-interest income to help diversify revenue sources and improve profitability.

Return on equity (ROE) will continue to be maintained at the top of the industry, while ratios in terms of risk management will be ensured in accordance with leading international standards.

Paying dividends at 35 per cent, increasing charter capital to over VND21 trillion

In 2022, VIB plans to increase its charter capital to over VND21 trillion, up 35.7 per cent year-on-year.

The bank also plans to issue bonus shares at 35 per cent to existing shareholders and equity shares at 0.7 per cent to employees.

This plan comes from VIB's capital needs for investment projects in technology systems, networks, and credit extension, meeting the capital adequacy ratio in accordance with the provisions of the law.

It will also help ensure the bank’s employee stock ownership plan (ESOP) that aims to develop and maintain a quality human resource, serving its business and operations.

Positioned as the leading retail bank in Viet Nam in quality and scale

After the first phase of the 10-year transformation journey, VIB has built a solid and effective foundation for business operation, digital transformation and risk management. It has also successfully shifted into a professional retail bank with a retail lending ratio accounting for nearly 90 per cent of the credit portfolio, twice the industry average.

Between 2017 and 2021, VIB's pre-tax profit rose 11-fold while its capital and total assets both increased by 3-fold.

During the period, the bank grew strongly in lending and deposit activities and led the insurance market share and credit card trend. It also succeeded in building a branch channel and in developing a modern and multi-featured digital bank.

For the next five years, VIB will continue to maintain its position as the leading retail bank in Viet Nam in terms of quality and scale. The bank has targeted its profit growth of at least 30 per cent each year, and is expected to surpass the billion-dollar mark.

Besides, the customer base will also be expanded nearly three times compared to the current one. These growth targets are based on expectations of the economy’s recovery, the strong growth potential of the retail segment, and VIB’s outstanding advantages that resulted from its success in transiting to the current modern, professional retail model and pioneering in digitisation.

Focusing on core products and services based on high technology

VIB will continue to develop and diversify its products and services in order to bring optimal benefits to customers at the fastest and most effective speed in the country.

Meanwhile, the bank will further concentrate on the retail banking segment and lead the market in several products such as home loans, automotive loans, business loans credit cards, deposits, investment and insurance, besides transactions and digital banking.

The bank has made sufficient investment in technology platforms, making its digital platforms and digital products the first choice of customers for financial products and services.

In addition, it will facilitate the application of leading technologies such as automation, artificial intelligence (AI), machine learning, Big Data and cloud computing to better meet the needs of customers and speed up the development of the bank's digital products and services.

At the same time, VIB aims to maintain its position as the leading digital bank in Viet Nam.

Consistent with its vision of becoming the most innovative and customer-oriented bank in Viet Nam, VIB will continue to strengthen its brand and affirm its position in the domestic and foreign financial markets thanks to its outstanding efficiency and transparency in business activities, and its initiatives in applying leading international standards in operation and management.

This is also one of the sustainable development goals that VIB has been pursuing in its journey to position the bank as the leading retail bank in Viet Nam in terms of both quality and scale.