VIB has been listed in the top efficient banks for continuous 10 quarters.  — Photo courtesy of the bank

HCM CITY — Vietnam International Bank (VIB) recorded pre-tax profit of over VNĐ3.95 trillion (US$170 million) in the first half of 2021, up 68 per cent year-on-year.

VIB’s return on equity ratio (ROE) was 32.8 per cent, among the highest in the banking industry, while the bank’s non-performing loans remained low at 1.3 per cent in the period, according to its H1 financial report published on Monday.

Over the past six months of 2021, the bank’s total revenue also saw a strong increase of 52 per cent to surpass VNĐ7.3 trillion compared to last year’s corresponding period.

Besides prioritising support for customers affected by the COVID-19 pandemic in a timely manner, VIB continued to improve its operating efficiency, thus reducing the period’s cost to income ratio to 37 per cent, the bank said in a statement.

As of June 30, 2021, the bank's total assets reached over VNĐ277 trillion while its outstanding credit balance hit over VNĐ185 trillion, 8.1 per cent higher than that seen early this year, according to the data. Meanwhile, funding from customers showed an increase of 12.1 per cent.

With its effective retail business strategy, VIB’s outstanding retail balance experienced positive growth at 14.2 per cent in the period, accounting for nearly 90 per cent of total outstanding credit balance amid the pandemic.

The retail portfolio has helped VIB reduce concentration risks and better adapt in the current volatile market environment. It is also one of the banks that has the highest retail credit portfolio in the country. 

Last month, VIB distributed bonus shares to shareholders at 40 per cent in order to increase charter capital to over VNĐ15.5 trillion ($665 million).

Advanced technologies that VIB has been applying have facilitated customers, enabling them to easily open payment accounts, online savings and transfer money online instead of visiting the banks' transaction offices or branches.  

VIB has also implemented many programmes that encouraged customers to make online transactions such as exempting all transfer fees for transactions via MyVIB Mobile Banking application and via e-Banking at https://ib.vib.com.vn; launching new lines of cards for online shopping - VIB Online Plus and VIB Online Plus 2in1, as well as teaming up with partners to offer discounts of up to 50 per cent for customers to pay for shopping, food, cosmetics, and healthcare services. 

Amid the complicated development of COVID-19, in addition to ensuring its safe and sustainable business operations, VIB has also cooperated with the State Bank of Việt Nam, relevant management agencies, partners and customers in fighting the pandemic and minimising negative impacts on the lives of local people and the economy.

Since the beginning of this year, VIB has slashed lending interest rates from 0.5 per cent to 2 per cent for nearly 10,000 affected customers. 

At a recent meeting with the Việt Nam Banks Association and other credit institutions, VIB committed to reduce lending interest rates for individual and corporate customers by 1.5 per cent in July, focusing on those heavily impacted by the pandemic.

As part of its ongoing efforts to help the State in the battle against the pandemic, VIB also has contributed VNĐ20 billion to the national COVID-19 Vaccine Fund. With the donation, VIB hopes to contribute to administering free vaccines to all people in order to return life to normal as well as stabilising the local economy. — VNS