HÀ NỘI — The Vietnam International Bank (VIB) recorded a significant increase of 176 per cent in pre-tax profit to VNĐ1.72 trillion (US$75.5 million) in the past nine months, according to data released on Monday.

The bank’s pre-tax profit in the first nine months accounted for 86 per cent of its annual target. Its revenue increased by 48 per cent year-on-year, of which interest income and non-interest income were up 50 per cent and 37 per cent, respectively.  

The cost-to-income ratio at VIB dropped to 48 per cent from 57 per cent in 2017. Meanwhile, its return on equity ratio was 19.4 per cent thanks to lower provision expenses after the bank bought back its bad debts from the Việt Nam Asset Management Company.

From January to September, the bank’s total assets topped over VNĐ132.5 trillion, up 8 per cent year-to-date, while lending and deposits experienced respective rises of 13.1 per cent and 15 per cent to VNĐ95.2 trillion and VNĐ89.2 trillion. Its non-performing loan ratio remained at 2.5 per cent in the nine-month period.

According to VIB, its retail banking business had continued to make a significant contribution to the bank’s nine-month growth.  

Lending reached VNĐ67.4 trillion, surging 58 per cent over the same period last year, making VIB become one of the biggest retail banks in the market.

VIB maintained its top position in auto-loans with a 25 per cent market share. At the same time, with its integrated insurance distribution model, VIB ranked in the top three in terms of bancassurance sales in the country with yearly growth of over 200 per cent.

A multi-channel credit card development model combined with digital banking, its branch network, direct sales and telesales channels had helped credit card growth rise 84 per cent year-on-year and total credit card spending in the third quarter went up by 214 per cent.

The positive growth in both size and quality had helped VIB’s retail revenue in the first nine months skyrocket by 92 per cent against the corresponding period last year, the bank said.

In addition to positive business results, VIB has maintained the best safety ratios in the banking industry. Moody’s has upgraded the long-term local and foreign currency deposit and issuer ratings of VIB from B2 to B1. 

VIB’s safety ratios have always been strong and complied with regulations set by Government agencies and partners. VIB’s capital adequacy ratio reached 12.4 per cent and the ratio of short-term deposits used for long-term loans stood at 38.2 per cent, lower than the permitted maximum limit of 45 per cent.

In July, VIB was recognised by the State Bank of Việt Nam as one of five banks to have re-purchased all its bad debts from the VAMC. Three years ago, SBV selected 10 commercial banks to pilot Basel II standards and set a deadline of 2020 for the banks to meet the standards. To date, only VIB and Vietcombank are ready to apply this. — VNS