VIB: 2024 profit exceeds VND 9 trillion, credit growth at 22%, leading the industry

Vietnam International Bank (VIB) has released its 2024 financial results, showcasing an impressive 22% credit growth rate - one of the highest in the sector. With total assets exceeding VND 493 trillion, VIB has sustained strong growth momentum, reinforced its solid balance sheet, and achieved greater operational efficiency. The bank continues to pioneer in adopting international standards, while enhancing its reputation and establishing its position as a leading brand in the banking industry.

Exceptional growth in terms of scale and quality with a prudent risk appetite

As of December 31, 2024, VIB’s total assets exceeded VND 493 trillion, marking a 20% increase compared to the beginning of the year. The bank’s outstanding credit balance reached VND 325 trillion, achieving remarkable growth of nearly 22%, the highest among private joint-stock banks. This growth was driven by all four key segments: retail, corporate banking, SMEs, and institutional banking, supported by competitive loan rates and streamlined, flexible, and fast procedures.

Retail lending accounted for nearly VND 260 trillion, maintaining an 80% retail ratio—the highest in the industry—with the lowest credit risk concentration in the market. Notably, over 90% of retail loans are secured, primarily by residential properties and land with valid legal status and high liquidity.
VIB also holds one of the lowest proportions of corporate bond investments in the sector, representing only 0.2% of its total outstanding credit balance. All bonds are concentrated in manufacturing, trade, and consumer sectors, ensuring a balanced and secure investment portfolio.

Credit growth at VIB (2019-2024)

According to a VIB representative, with the bank being granted one of the highest credit growth quotas in the industry, it has ample room to expand across various customer segments. However, VIB remains steadfast in its prudent risk approach, avoiding loans to high-risk sectors and refraining from loosening credit conditions to pursue growth at all costs. This strategy ensures the bank’s operational safety and contributes to the stability of the banking system, avoiding potential long-term consequences.

Despite the banking’s industry deposit growth remaining subdued over the past few years, VIB has achieved robust growth in customer deposits, up over 17% compared to the start of the year, increasing total deposit to VND 276 trillion. This strong performance ensures liquidity and resources to support credit activities. Notably, retail customer deposits reached nearly VND 200 trillion, up 14%. Particularly, low-cost funding sources (CASA and foreign currency deposits) grew by over 35% year-to-date, aligning with the bank’s strategy to optimize funding costs, contributing to a 14% reduction in interest expenses for 2024 compared to the previous year.

Improved asset quality with safe and transparent risk management

VIB continues to pursue a prudent strategy, balancing its goals of credit growth, asset quality, and operational efficiency. By regularly reviewing credit policies, focusing on high-quality customer segments and collaterals, and implementing measures to control and prevent bad debts, the bank has significantly enhanced its asset quality. As of December 31, 2024, special-mention loans (Category 2) decreased by nearly VND 4,100 billion, equivalent to a 28% reduction from the beginning of the year. Similarly, substandard loans (Category 3) and doubtful loans (Category 4) declined by 9% and 28%, respectively, amounting to a total reduction of nearly VND 1,200 billion. As of December 31, 2024, the non-performing loan (NPL) ratio stood at 2.4%.

Notably, VIB is among the few banks with low accrued interest and fee receivables, totaling approximately VND 2,570 billion—down 30% from the end of 2023 and representing 0.5% of total assets. For comparison, this ratio at many banks ranges from 1%-2%, with some exceeding 3%. This reflects VIB’s transparency, the quality of its revenue as reported in financial statements, and its cautious approach to retail credit accounting.

VIB’s safety indicators remain at optimal level, with a Basel II Capital Adequacy Ratio (CAR) of 11.9% (regulatory requirement: over 8%), a Loan-to-Deposit Ratio (LDR) of 72% (regulatory cap: under 85%), a short-term capital for medium and long-term loans ratio at 22% (regulatory limit: under 30%), and a Basel III Net Stable Funding Ratio (NSFR) of 117% (Basel III standard: over 100%).

Proactive interest rate support, increased investments, and prudent provisions

In 2024, VIB recorded total revenue of VND 20,570 billion, a 7% decrease year-on-year. By focusing on high-quality customer segments with well-secured assets and launching numerous retail product initiatives with competitive interest rates, the bank experienced minor decline in its Net Interest Margin (NIM). However, through strategic optimization of funding costs, VIB maintained a competitive NIM of 3.8%, underscoring its resilience and effective financial management.

Beyond credit activities, VIB’s non-interest income grew by 6% year-on-year, contributing 19% to the bank’s total revenue. Notably, income from write-off recovery reached nearly VND 1,250 billion, marking an 80% increase compared to the previous year. Fee income totaled VND 2,100 billion, mainly driven by credit cards and bancassurance. The number of VIB credit cards exceeded 865,000, with card spending achieving a new record USD 5 billion, equivalent to an average of VND 10,000 billion per month—up more than 20% year-on-year. Meanwhile, bancassurance operations displayed positive growth following a strategic business model transformation, achieving a persistency rate of over 50%.

Operating expenses for 2024 increased by 9% year-on-year, primarily due to investments in human resources, technology, digital banking, marketing, and branch network expansion, aligning with VIB’s strategic growth in terms of scale. The bank’s cost-to-income ratio (CIR) stood at 35%, showing improvement compared to prior quarters as revenue recovers, cost optimization initiatives, and newly established branches began to yield positive results. In 2024, VIB opened 8 new branches in 7 provinces, including 3 in previously unserved locations. To support its robust growth trajectory, the bank plans to expand its network further by opening 10-15 branches annually in new provinces. In early 2025, VIB also onboarded 1,200 new employees to support its business expansion goals.

Despite significant improvements in asset quality and reduced bad debt pressures, VIB maintained its cautious provisioning policy, allocating VND 4,353 billion in provisions, a 10% reduction compared to the previous year, while ensuring stable coverage ratios.

In summary, VIB’s 2024 pre-tax profit totaled over VND 9,000 billion, reflecting a 16% year-on-year decline. However, this figure represents sustainable, high-quality profits that accurately reflect the bank’s business performance and market conditions. The return on equity (ROE) is at approximately 18%, underscoring the bank’s strong profitability.

Building a prestigious brand with innovative products, appearing at Times Square

In early December 2024, VIB was honored as one of the Top 50 Most Effective Businesses in Vietnam by Nhip Cau Dau Tu magazine, ranking second among banks and fifth overall in the country. The award evaluation is based on the enterprise's scale, growth, and efficiency over multiple years, solidifies VIB’s position as a leading retail bank in Vietnam in terms of both scale and quality.

Also in December 2024, VIB became the only bank to win eight prestigious credit card awards simultaneously, recognizing its achievements in card issuance, card spending, and breakthroughs in leveraging technology to deliver personalized products and enhance customer experiences. These accolades underscore VIB’s exceptional market leadership in the credit card segment, consistently pioneering and leading new card trends.

To enhance and amplify its brand, VIB has launched a series of creative advertising and marketing campaigns. The bank achieved remarkable success through reality TV shows such as The Masked Singer Vietnam, Let’s Feast Vietnam, and Anh Trai “Say Hi”, which garnered tens of billions of views and topped numerous music charts both domestically and internationally. These efforts contributed to a 51% increase in VIB’s brand value in 2024, the highest growth rate in the industry, according to Brand Finance.

In early 2025, the limited-edition gift set ‘Rivers to the Ocean” for VIB’s deposit customers was displayed at Times Square in New York City, capturing the attention of both domestic and international consumers. This marks another significant step for VIB in bridging finance, art, and public engagement.

VIB’s presence at Times Square, a global icon of creativity, is proof that financial services go beyond numbers. By combining modern technology, personalized features, and creativity, the bank has become a bridge connecting finance, art, and the public, offering enriching experiences that evoke positive emotions and convey meaningful messages.

Pioneering in applying international governance standards, enhancing responsibility, and contributing to society, community, and the banking sector

As a pioneer in applying international corporate governance and risk management standards, VIB has consistently earned high rankings and recognition from government authorities and leading international financial institutions such as the IFC and ADB. In 2019, VIB became the first Vietnamese bank to successfully implement all three pillars of Basel II's risk management standards. Additionally, VIB was one of the first two joint-stock commercial banks to release audited financial reports according to international standards (IFRS) starting in 2019, six years ahead of the Ministry of Finance’s requirements.

In August 2023, VIB was selected by the State Bank of Vietnam, alongside nine other commercial banks, to participate in the Steering Committee for the implementation of advanced Basel II and Basel III capital standards. VIB’s representatives stated that the bank aims to complete the adoption of Basel III standards by the end of 2025, reaffirming its leadership in driving and enhancing governance standards within the Vietnamese banking industry.

Beyond its leadership in compliance with these standards, VIB has actively contributed to the development of the community throughout its more than 28 years of establishment and growth. The bank has made significant contributions through both economic and social initiatives, particularly in contributing to the national budget. This not only reflects VIB’s business success but also highlights the value the bank brings to the national budget of Vietnam, creating a foundation for reinvestment in essential sectors such as infrastructure, education, and healthcare.

In 2024, VIB was recognized as one of the top four private commercial banks in Vietnam for its significant contributions to the national budget. In early 2025, VIB received a certificate of acknowledgement from the State Treasury and the People's Committee of Ho Chi Minh City for its outstanding performance in state budget contributions, being one of the top four banks with the highest contributions to the city’s budget in 2024.

These achievements not only reaffirm VIB's leading position in terms of both scale and quality but also demonstrate its sense of responsibility toward the community and society. Furthermore, VIB’s efforts contribute to the banking sector’s transition to a modern, professional, transparent, safe, and sustainable growth model.