MB Securities Joint Stock Company (MBS) reiterates its buy rating and VND25,500 price target for the mid-term investment, advising clients to purchase the stock of Vietnam International Bank (VIB) ahead of its annual general shareholders meeting.
Yuanta Vietnam – a sub-company of Taiwanese Yuanta Financial Holdings also release a research report on VIB’s outlook, which estimates profit of the bank will growth 15% – 20%.
Key reasons investors should be buying shares of VIB.
In 2018, Pre-tax profit of VIB reached VND2.741 trillion ($118.1 million), up 95 per cent year-on-year and 37 per cent higher than the plan. This was the second consecutive year VIB’s profit nearly doubled.
The bank’s revenue rose 48 per cent, in which interest income and non-interest income increased 40 per cent and 92 per cent, respectively. Non-interest income contributed 20 per cent to total revenue. The cost to income ratio (CIR) reached an efficient 44 per cent, falling 13 per cent year-on-year. Return on equity (ROE) rose sharply, to 22.5 per cent, putting VIB among those banks with the highest ROE.
VIB’s retail banking business continued to make a key contribution, with revenue up 90 per cent. the wholesale banking and treasury banking businesses also saw significant growth in profit, of 22 per cent and 49 per cent, respectively.
As of December 31, total assets of VIB stood at nearly VND140 trillion ($6.03 billion). Thanks to this impressive growth, VIB has surpassed many large joint stock banks in terms of retail lending balance and affirmed its position among joint stock banks with a high retail lending market share.
Equity of VIB is VND10.662 trillion ($459.67 million). Its capital adequacy ratio (CAR) under Basel II standards was 10.2 per cent, while its non-performing loan (NPL) ratio is 2.2 per cent, with zero legacy loans sold to the Vietnam Asset Management Company (VAMC).
VIB’s annual general shareholders meeting will be held in Saigon, on March 28 this year.