VIB reports over VND 2.4 trillion in Q1 2025 profit, CASA up 17%, 21% dividend payout approved

Vietnam International Bank (VIB) has announced its business results for the first quarter of 2025, posting a pre-tax profit of over VND 2.4 trillion, representing a 7% increase compared to the quarterly average of 2024. Both credit and deposit activities recorded solid growth, with Current Account Savings Account (CASA) balances rising by 17% year-to-date, supporting the bank’s strategy to enhance net interest margins (NIM) and optimizing funding costs. These efforts have contributed to building a robust balance sheet and maintaining high operational efficiency. As the first bank to hold its 2025 Annual General Meeting of Shareholders (AGM), VIB is also the first to implement a 21% dividend distribution plan, with a 7% cash dividend scheduled for payout in May.

Sustaining a strong balance sheet with healthy credit and deposit growth; CASA up 17%

As of March 31, 2025, VIB’s total assets reached VND 496 trillion. Customer lending totaled VND 335 trillion, growing over 3% year-to-date. Credit growth was well-balanced across all customer segments, including retail, SMEs, corporates, and financial institutions, with the retail loan portfolio maintaining a industry-leading proportion of nearly 80% of VIB’s customer lending. Following a dynamic yet prudent credit growth of 22% in 2024, VIB continued to pioneer in retail lending solutions, notably introducing a VND 45 trillion home loan package for apartment and townhouse buyers. This package features uniquely low fixed interest rates of 5.9%-6.9%-7.9% for 6-month, 12-month, and 24-month terms, respectively, along with an innovative feature allowing customers to borrow VND 1 billion and pay only VND 1 million in principal monthly. Thanks to these innovative and transparent solutions, VIB was recognized as the “Best bank for home loans in 2025” by Global Brands Magazine in April 2025.

Strong deposit growth, retail deposits as the main driver

Customer deposits surpassed VND 282 trillion, increasing by 2% year-to-date, with retail deposits accounting for over 70% of the total. In Q1 2025, VIB launched the innovative “Super Account,” attracting nearly 200,000 activated accounts within just two months. This product provided superior, innovative benefits to millions of customers and earned VIB the awards of “Best banking account for customer benefits 2025” by Global Brands Magazine and “Best new customer-centric account solution 2025” by Global Business Outlook. 

Risk management indicators remain strong and prudent

By the end of Q1 2025, VIB’s non-performing loan (NPL) ratio stood at 2.68%. Other risk management indicators were maintained at safe and optimized levels: Capital Adequacy Ratio (CAR) under Basel II was 11.8% (regulatory minimum: 8%), loan-to-deposit ratio (LDR) was 75% (regulatory cap: 85%), the ratio of short-term funding for medium and long-term loans was 23% (regulatory cap: 30%), and the Net Stable Funding Ratio (NSFR) under Basel III stood at 115% (regulatory minimum: 100%).

Maintaining operational efficiency through cost optimization and enhanced debt recovery

In the first three months of 2025, VIB recorded a total operating income exceeding VND 4.6 trillion, with pre-tax profit over VND 2.4 trillion, in line with the profit target approved at the 2025 AGM. While proactively reducing lending rates to support economic recovery and focusing on high-quality customer segments, VIB maintained an optimized NIM of 3.6% and achieved interest income of more than VND 3.7 trillion.

Fee income and debt recovery activities also contributed positively to total revenue. The number of active credit cards surpassed 900,000, with card spending reaching nearly VND 33 trillion in Q1, up 17% year-on-year. Income from write-off recovery contributed to more than VND 342 billion, an increase of 64% year-on-year. Through enhanced operational efficiency strategies, operating expenses decreased by 6% year-on-year, while provision expenses dropped by 55% thanks to prudent provisioning in previous periods.

Chart: Operating expense of VIB and credit cost from Q1 2024 to Q1 2025

21% dividend payout and strong capital position

At the AGM held on March 27, 2025, VIB shareholders approved a 21% dividend plan, including a 7% cash dividend and a 14% stock dividend. VIB plans to pay nearly VND 2.1 trillion in cash dividends. Upon completing the stock dividend distribution and a 0.26% Employee Stock Ownership Plan (ESOP) issuance, VIB’s charter capital is expected to exceed VND 34 trillion.

With a strong Return on Equity (ROE) consistently maintained at a high level over the years, VIB has accumulated retained earnings to reinforce its capital base, supporting the bank’s growth plans while ensuring a sustainable, attractive return for shareholders. Altogether, VIB will have distributed over VND 8.5 trillion in dividends for the 2023-2025 period, placing it among the leading private commercial banks in Vietnam in terms of dividend payout ratio. By the end of Q1 2025, VIB’s CAR under Basel II remained high at approximately 11.8%, and the bank aims to maintain an optimal level of 11%-12% throughout 2025, well above the regulatory minimum.

Outlook

VIB representative stated that the bank’s leadership closely monitors both domestic and international macroeconomic developments to dynamically adapt its business strategies and best serve its retail, SME, corporate, and financial institution clients. The bank is on track to deliver all 2025 AGM resolutions, including dividend payouts, charter capital increase, 22% credit growth, and achieving a pre-tax profit target of VND 11.02 trillion, up 22% compared to 2024.