A logo of VIB. — Photo courtesy of the bank

HÀ NỘI — After six years of implementing strong and extensive strategic transformation, Vietnam International Bank (VIB) has marked important milestones in its journey to becoming the leading retail bank in Việt Nam.

The bank will hold its Annual General Meeting of Shareholders (AGM) in 2023 on March 15. Below are important points that are listed in the document sent by the bank to its shareholders. 

Profit increased 15 times with an average growth of 57 per cent/year

A chart shows the bank's annual profit growth in 2016-22. — Source: Financial statements in 2016-22

The intense focus on retail banking has helped VIB create a scale advantage. The business models of auto loans, home loans and credit cards showed their effectiveness, allowing the bank to gain leading market share in many retail segments.

The customer-centric strategy has helped VIB attract and serve over four million customers and increase customer engagement.

The positive business results of 2022 contributed to the overall efficiency in the six years of transformation (2017-22), making VIB one of the leading banks in asset size growth, revenue growth, effective cost management and tight risk control. VIB's profit has grown at an annual compound growth rate  (CAGR) of 57 per cent per year over the past six years.

A leader in scale growth

A chart shows VIB's growth rate of some indicators compared to the Top 10 listed banks in 2017-22. — Source: Finpro, financial statements of banks

With Việt Nam's economy among the most dynamic in the world, the  substantial increase in investment, consumption and financial services demand in recent years has created conditions for retail banks such as VIB to maintain a positive growth rate in the past six years and the future.

Sustainable business performance

VIB's business performance compared to the Top 10 listed banks in the 2017-22 period. — Source: Finpro, financial statements of banks

VIB is a bank with outstanding retail loans accounting for over 90 per cent of its total loan portfolio. The bank has recorded its return on equity (ROE) ratio at over 30 per cent for three consecutive years thanks to its focus on retail and the effective operating model.

Attractive dividend payout ratio

VIB's dividend payout ratio over the years. — Source: Documents of the Annual General Meeting of Shareholders in 2017-22

With ROE among the market's highest, VIB maintained the highest dividend payout ratio at 40 per cent in 2020, and 35 per cent in 2021. The bank is expected to pay dividends at 35 per cent in 2022.

In the last three years, VIB did not pay cash dividends following the request of the State Bank of Việt Nam. So in the document sent to shareholders, the bank's Board of Directors proposed that the 2022 dividend be paid 15 per cent in cash and 20 per cent in shares. VIB's leaders expect a dividend policy to be developed so that the bank could pay annual cash dividends to shareholders starting in 2023. 

A bank with the lowest concentration risk in the market

VIB's outstanding balance in 2017-22. — Source: The bank's financial statements

VIB's outstanding retail loans account for up to 90 per cent of the total loan portfolio. Of the total, up to 91 per cent of loans are secured by assets, while the remainder is mainly credit card loans. Meanwhile, the outstanding balance of corporate bonds of VIB equals less than 1 per cent of the total credit balance.

As a result, for five consecutive years, the ratio of provision expenses to VIB's outstanding loans was only 30-50 per cent of the average of the Top 10 listed banks. That is considered one of the crucial factors that have helped VIB achieve good profitability and a high ROE ratio.

Ranked in the highest group in the industry

Ranked highest by the State Bank of Việt Nam. — Photo courtesy of VIB

VIB has been ranked in the top group for many years by the State Bank, based on capital, profit, asset quality, liquidity quality and sensitivity management criteria.

A pioneer in card and technology trends

Registering a credit card on MyVIB 2.0. — Photo courtesy of VIB

Vie - VIB 's AI virtual financial expert. — Photo courtesy of VIB

Business plan in 2023: continuing the sustainable growth momentum 

VIB's business plan in 2023.  — Photo courtesy of VIB

VIB has marked essential milestones on the journey to becoming the leading retail bank in Việt Nam during the first six years of the 10-year strategic transformation period (2017-26).

In the document sent to the General Meeting of Shareholders, VIB's Board of Directors outlined the goals for the five-year period from 2022 to 2026, including attracting 10 million customers, achieving an annual compound growth rate of 20-30 per cent each year, thereby sustainably increasing the market capitalisation for shareholders.

VIB leaders said they believed the bank would achieve the business plan in 2023 and complete the 10-year transformation goal thanks to its creativity and persistence in large-scale transformation activities, excellent operating model, advanced corporate culture, and staff's capacity and enthusiasm. — VNS