Vietnam International Bank (VIB) has earned VND 1,820 billion in profit in the first 6 months of 2019, leading the market in life insurance distribution and card issuance.
According to its first half-year financial report for 2019, revenue of the bank reached VND 3,662 billion, up 36% YOY, of which net profit from services accounted for 21%, an increase of 143% YOY.
Profit before tax reached VND 1,820 billion, an increase of 58% YOY. Total revenue reached VND 3,662 billion, up 36% YOY. Income excluding interest increased by 68% and accounted for 20% of total revenue.
ROE reached 25.1% for the fourth consecutive quarter. The ratio of cost to income dropped to the most effective rate so far, at 41.6%.
Total assets amounted to nearly VND 164 trillion, an increase of 18% compared to the beginning of the year. Lending reached VND 114.9 trillion. Deposit and valuable papers amounted to VND 114.4 trillion. Government bonds and corporate bonds increased 15%. NPL ratio was low at 1.8%, and there was no VAMC debt.
Equity reached VND 11.6 trillion as of June 30, 2019, an increase of 9% compared to the beginning of the year. This quarter, VIB paid dividends to shareholders in cash at a rate of 5.67%. A list of shareholders to distribute 3.18% of treasury stock was finalized at the beginning of July. In the third quarter, VIB will continue to distribute 18% in bonus shares in accordance with AGM to increase charter capital to nearly VND 9,245 billion. VIB has applied Basel 2 since January 1, 2019 and strictly been complying with regulations on capital adequacy, fulfilling Based 2 standards with CAR reaching 9.3% as of June 30, 2019.
VIB has reported high and quality retail growth. The growth rate in retail lending for the first six months increased by 21%, accounted for 78% of total lending portfolio. The two main lending products of VIB, mortgages and auto loans, grew 19% and 23% respectively (in 2018, these numbers were 45% and 59%). VIB has been the no.1 bank in the market for auto loans for three years in a row.
VIB is also recognized as the leading bank in credit cards in Vietnam, which has taken steps towards becoming a cashless society. VIB is in the forefront of the credit card sector, having developed unique and practical cards applying the most optimal technology. As a result, VIB’s card issuance and card transaction rates are double the market average. In addition, VIB is consistently ahead of the curve regarding the distribution of life insurance. VIB is an important partner of Prudential in Vietnam, and distributes over 75% of Prudential’s Bancassurance sales.
With the goal of leading the retail banking sector in quality and scale , VIB has consistently offered attractive promotions and more benefits for customers, such as waiving fees on ATM withdrawals and cash transfers, offering gifts for new savings accounts, and introducing six new credit cards with generous policies regarding reward points, mileage, and cash back on gasoline. In the 2nd quarter, in addition to two cards that are completely unique on the market – VIB Financial Free, which waives the annual fee for life and offers unlimited cash withdrawal, and VIB Happy Drive, which rewards customers up to 500 liters of gasoline/year and offers cash back on 30% of car maintenance fees, VIB also released VIB Zero Interest, which allows consumers to use bank capital with 0% interest for life . VIB Zero Interest was a breakthrough in the market and has served to reaffirm VIB’s leading position in Vietnam’s credit card market.
Regarding human resources, VIB continues to be recognized as one of the five banks with the best recruitment and remuneration policies and labor productivity in the market by independent audit organizations. As of Jun 30, 2019, VIB employees totaled at 6,375 people, with an average monthly income of VND 23.55 million, an impressive increase from last year.
Besides financial activities, prestigious international organizations also rates VIB highly on other business activities and services. Moody’s Investors Service rated VIB at the level B1 on credit rating. VIB was also awarded “Most innovative working environment in Vietnam” by the International Financial Magazine (UK) for its efforts to improve the work environment and enhance employee cohesion. For the 3rd year in a row, The Asset magazine awarded VIB ‘Digital Bank of the year’ and ‘Best Retail Digital Banking Experience‘ for its accomplishments in digital bank services, particularly for the website and mobile app MyVIB. VIB’s new digital banking website, www.vib.com.vn, integrates many modern features for research and comparing information, products, and services, and allows for instant consulting services within five minutes of making an appointment. With MyVIB, customers can carry out basic actions such as transferring money and making payments, donations, hotel reservations, ticket reservations, etc. within 5 seconds. Customers have rated MyVIB as one of the smartest, most secure, and most user-friendly apps in Vietnam.