A logo of VIB seen at a bulding in HCM City — Photo courtesy of the bank

HCM CITY — Vietnam International Bank (VIB) recorded profit before tax of over VNĐ5 trillion in the first half of 2022 (H1/2022), up 27 per cent year-on-year.

VIB’s return on equity ratio (ROE) stood at 30 per cent, confirming its presence in the banking industry’s leading group, according to its H1/2022 financial statement published this week.

Sustainable growth, outstanding business results in H1

The bank’s total operating income reached more than VNĐ8.7 trillion in the first six months of 2022. Of the sum, net interest income hit VNĐ7.2 trillion, up 26 per cent year-on-year while non-interest income topped over VNĐ1.5 trillion, making up 18 per cent of the total.

During the period, the bank’s operational costs were well controlled thanks to its efforts in optimising operating model, developing a flat and compact organisational structure besides enhancing digital banking transactions and slashing costs.

Its operating expenses saw a modest yearly increase of 9 per cent to about VNĐ3 trillion.

At the same time, the bank's cost to income ratio (CIR) decreased to 34 per cent, showing its cost management efficiency at the top of the industry.

According to the report, VIB saw its six-month provision expense at VNĐ750 billion. Its ratio of credit expense to credit balance was managed at 0.7 per cent. This ratio has been maintained by the bank for more than five years, lower than the industry average at 1.2 per cent to 1.5 per cent.

A chart shows VIB’s profit before tax, ROE in 2017-22. — Photo courtesy of the bank

As of June 30, 2022, VIB's total assets reached nearly VNĐ350 trillion, an increase of 12.5 per cent over the end of 2021 and a hike of 26 per cent over the same period last year.

Its outstanding credit balance hit over VNĐ224 trillion, up 9.7 per cent year-on-year. Retail loans remained to make up 90 per cent of the total outstanding credit balance with 93 per cent of loans having collateral.

Meanwhile, capital mobilisation including customer deposits, issuance of valuable papers and that from international institutions such as IFC and ADB topped VNĐ265 trillion in the six months, 11.8 per cent higher than the end of 2021.

As per the report, safety indicators were managed at an optimal level by the bank. Its capital adequacy ratio 11.5 per cent, short-term capital for medium and long-term loans 29 per cent and loan-to-deposit ratio 70 per cent were all better than requirements by regulation.

Also, non-performing loans ratio of the bank was maintained at less than 1.8 per cent and the net stable funding ratio (NSFR) was at over 110 per cent, well within Basel III regulations.

Leader in key retail businesses

Over the past five years, VIB has been one of the leading banks in terms of retail credit growth.

By the end of H1/2022, VIB was among top banks in terms of market share for auto loans and life insurance nationwide. Besides, it was also recognised as one of the banks with the fastest credit card growth and highest card spending.

VIB marked a milestone in June when more than half a million credit cards were issued in local market.

VIB also led in the growth rate of Mastercard credit cards, 5-6 times higher than the average of the whole market in quantity and quality.

The bank also ranked second in total spending on Mastercard's cards, making up nearly 35 per cent of Mastercard's total spending in Việt Nam.

Recently, VIB was the only bank in Việt Nam to receive nine prestigious awards from Mastercard at the same time, surpassing over 40 banks that have been issuing Mastercard cards in the country.

With a consistent customer-centric strategy in digitization and digital transformation, VIB has pioneered in applying many new technologies and developing value chains to bring customers better experiences.

From January to June, VIB experienced outstanding growth with the number of digital banking transactions increasing 100 per cent year-on-year while witnessing 92 per cent of transactions being made via digital channels.

The bank’s MyVIB Digital Banking App has thus far received awards from The Asset magazine for the fifth time, and for the eighth time it has been granted other prestigious ones by major international media agencies such as The Banker, Global Finance Review.

Lately, the Vietnam Records Association (VietKings) handed two records to VIB including "The first bank in Việt Nam to provide Augmented Reality technology on mobile banking application MyVIB 2.0" and "MyVIB 2.0 - The first Cloud Native Mobile Banking application in Việt Nam."

Entering the VN30-Index, completing bonus share distribution for existing shareholders

The Hồ Chí Minh Stock Exchange announced on July 18 that VIB has been eligible to enter the VN30-Index basket which consists 30 biggest stocks with the largest capitalisation on the southern bourse and high liquidity.

The VN30-Index represents a group of leading enterprises in Việt Nam’s stock market, contributing over 70 per cent of market capitalisation and 60 per cent of total market liquidity.

Earlier this month, VIB also completed increasing its charter capital hike by over VNĐ5.54 trillion by distributing bonus shares of 35 per cent for existing shareholders and 0.7 per cent for employees from equity.

After the capital hike, VIB’s charter capital surpassed VNĐ21 trillion, helping the bank expand business activities based on a strong capital foundation. — VNS