VIB: Profit exceeds 6.600 billion, credit growth increases 12%, outperforming the banking industry

Vietnam International Bank (VIB) announced its business results for the first nine months of 2024, showing stable revenue and performance. The bank achieved robust credit and funding growth, exceeding the industry average, along with improved asset quality and a strong, secure balance sheet.

Credit and funding growth outperform the industry average

As of September 30, 2024, VIB's total assets stood at VND 445 trillion, a 9% increase compared to the beginning of the year. Total credit reached over VND 298 trillion, reflecting nearly 12% growth, higher than the 9% industry average. In the third quarter alone, VIB's credit growth was close to 7%, positioning VIB as one of the top-performing retail banks in terms of credit growth in the industry. Funding, for the first nine months of the year grew by 8%, nearly double the industry average, ensuring sufficient funding sources for the credit activities.

Profit declined due to interest rate support, expansion in investments, and prudent provisioning

After the first nine months of 2024, VIB achieved total revenue of VND 15.3 trillion, with the net interest income down 9% compared to the same period last year. With its strategy, VIB focuses on high-quality customers, with strong collateral. We offer competitive interest rates and maintain a strong NIM at 4%.

On September 21, at the Government Standing Conference about the strategies to promote Vietnam’s socio-economic development, Chairman of the Board of Directors of VIB, Mr. Đặng Khắc Vỹ, stated that the bank has significantly reduced lending interest rates across all customer segments, stimulating both the supply and demand, thereby supporting economic growth. Additionally, VIB’s leadership emphasized the importance of ensuring responsible and robust credit growth to maintain a healthy and sustainable development of the banking sector.

In the first 9 months of 2024, VIB's non-interest income reached VND 3,500 billion, an increase of 5%, contributing 23% to the bank's total revenue. Operating expenses increased by 13% year-on-year, driven by investments in human resources, new branch openings, technology, digital banking, and marketing. The cost-to-income ratio (CIR) temporarily rose to 36%, but there has been improvement compared to the previous quarter, as cost-optimization initiatives are being thoroughly implemented, and new branches are starting to operate efficiently.

VIB maintains a prudent policy with the provisioning. As of 30.09.2024, our provisioning stands at around VND 3,230 billion, increasing 2% year-on-year. Moreover, in the context of improving asset quality, provisioning in Q3 decreased by over 25% year-on-year. Overall, VIB's pre-tax profit for the first nine months of the year, reached VND 6,600 billion, down 21% compared to the same period last year. The return on equity (ROE) stood at approximately 19%.

Asset quality improvement, lowest concentration risk in the industry, and prudent risk management

VIB's category 2 loans have decreased by over VND 4,000 billion, equivalent to a 27% reduction, and the provisioning buffer has increased by 27% compared to the beginning of the year. As of September 30, 2024, VIB’s non-performing loan (NPL) ratio stands at 2.67%.

Key management indicators are at the optimal levels, with the Basel II capital adequacy ratio (CAR) at 11.5% (regulatory requirement is above 8%), the loan-to-deposit ratio (LDR) at 75% (regulatory cap is below 85%), the short-term capital for medium and long-term loan ratio at 26% (regulatory cap is below 30%), and the net stable funding ratio (NSFR) under Basel III at 111% (Basel III standard is above 100%).

Building a reputable brand, superior innovative products, and leading reality TV programs

In early October 2024, VIB was honored by Enterprise Asia with the "Corporate Excellence Award 2024", recognizing its outstanding retail banking solutions and products, modern digital banking applications, transparent corporate governance, and pioneering adoption of international standards. Additionally, VIB became the first bank in Vietnam to launch personalized card design services, supported by generative artificial intelligence (Gen AI).

VIB continues to make a strong impression as a leading retail bank, reinforcing its goal of leading the card trend with the Anh Trai “Say Hi” program. This show has garnered over 10 billion views across all platforms and have had 100% of its episodes on Top YouTube Trending.

Responsibility and contribution to society, the community and the banking industry

For over more than 28 years of establishment and development, VIB has consistently contributed to community development through various economic and social activities, especially in terms of contributing to the corporate tax and complying with the international standards. VIB recently ranked among the top 4 private banks with the largest corporate tax contributions to the national budget. In addition, VIB ranked 11th among private enterprises with the highest corporate tax contributions in 2023, totaling nearly VND 3,300 billion.

In 9 months of 2024, VIB contributed VND 15 billion to the national program to eliminate temporary and substandard housing, VND 5 billion to support recovery efforts from Typhoon Yagi, and VND 7 billion to fund student scholarships and various programs aimed at honoring traditions and promoting cultural, educational, and social development.