The Vietnam International Bank (VIB) announced its business results in the first 9 months of 2021 with total operating income and pre-tax profit growing 32%. The bank maintained its leading position in the banking system in terms of operational efficiency with ROE amounting to over 29%, and the main driving forces were retail banking and digital banking.
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Maintaining sustainable growth momentum during the prolonged Covid-19 social distancing period
VIB’s products and services digitalization projects over the past two years have brought many positive results, especially during the social distancing period in the third quarter.
On September 30, 2021, VIB’s total assets reached more than VND285 trillion, a 16% rise compared to the beginning of the year. Outstanding loans amounted to VND190 trillion, up 11%, and deposits from customers reached more than VND170 trillion, up 13%. CASA recorded an impressive growth rate of nearly 20%. The retail banking segment contributes over 85% to the bank’s loan portfolio, resulting in VIB having the best retail ratio on the market.
VIB reported total operating income in the first 9 months of the year at over VND10,300 billion, and pre-tax profit at more than VND5,300 billion, both expanding 32% over the same period last year. VIB retained its leading position in the industry in terms of operational efficiency with a return on equity (ROE) ratio of over 29%.
The capital adequacy ratio (CAR) under Basel II was managed optimally at 10.6%, and the loan-to-deposit ratio (LDR) was 73%. Operating expenses in the third quarter were comparable to the second quarter of 2021, with the cost-to-income ratio (CIR) staying at 39%.
In the third quarter of 2021, VIB actively supported its customers to cushion the impact of the pandemic with various policies such as reducing loan interest rates, lowering transaction fees and supporting loan restructuring. Aside from the direct interest and fee reduction packages, VIB continued to support the interest payment structure in the following quarters to help stabilize the actual cash flow of each customer.
Although this temporarily affected the Q3 business result, but VIB stated that this was the reasonable and timely policy that shows its commitment to support valued customers over the years. VIB’s proactive and well-timed support helped its customers to adapt to the ‘new normal’ as soon as possible. The majority of the customers who were supported have had a repayment plan earlier than the support plan, so it is expected to have a very positive impact on the bank’s Q4 business results.
Pioneering in applying IFRS to help increase shareholder value and attract foreign investors
On June 30, 2021, VIB became one of the first two banks in Vietnam that completed the audit report in line with the International Financial Reporting Standards (IFRS) for 2020. According to the audited 2020 IFRS financial statement, VIB’s equity grew by more than VND1,000 billion compared to that based on the VAS standards.
By pioneering in applying international Basel II, Basel III and IFRS standards, VIB is highly appreciated by domestic, foreign investors, and financial institutions over its transparency. They also express their interest in the bank’s issuance, capital, bonds, and capital mobilization activities.
Taking the lead in product and service quality through extensive digitalization
As one of the leading digital banks that have provided a new digital customer experience in Vietnam over the years, VIB focuses on applying high technology such as Big Data, AI and cloud computing to its transactions, thus bringing an outstanding digital customer service to users. Users can now easily open a payment or savings account, transfer money, and inquire about spending management and other banking services with a few clicks on the VIB mobile app. Especially, VIB is the pioneering bank in applying the 100% digital card open process for all credit cards that are available on the VIB website.
September of 2021 marked an important milestone in VIB’s digital transformation journey. The bank teamed up with Microsoft through a strategic partnership agreement to deploy the multi-cloud computing platform, becoming one of the first banks in Vietnam to develop a multi-cloud strategy. This is a crucial stage in applying the outstanding technology from the world’s leading technology partner to its financial products and services and improve the Vietnamese customer experience for the banking industry in general and for VIB in particular.