Operating income rises 94% year-on-year with other indicators also in good shape.
VPBank’s accumulated net operating income for the first three quarters of 2015 reached VND8.448 trillion ($378.64 million), a 94 per cent increase year-on-year. Income from services grew strongly, at 51 per cent, as the bank seeks to be less reliant on profit from other activities.
Total mobilized capital was nearly VND148 trillion ($6.63 billion), 5 per cent higher than the annual plan and up 22 per cent compared to the end of 2014.
VPBank was ranked 21st in the V1000 rankings; the 1,000 organizations that have paid the most corporate income tax in Vietnam in 2015. Profit before tax for the first nine months stood at VND2.329 trillion ($104.39 million), equal to 93 per cent of the annual plan and 73 per cent higher year-on-year. Total assets as at September 30 were VND195.004 billion ($8.74 billion), representing 96 per cent of the annual plan and nearly $1.43 trillion (19 per cent) higher than the figure at the end of 2014.
Besides maintaining positive growth in traditional products for individual customers and small and medium-sized enterprises (SMEs) in 2015, VPBank also introduced products and credit policies for household businesses in traditional markets and traditional craft villages. It also supported enterprises in the agricultural sector in securing capital to expand their business.
“In 2015 VPBank successfully implemented its end-to-end risk management system for individual customers and SMEs, resulting in quality of debt increasing four-fold and risk provisions falling,” according to its report.
As at September 30 VPBank had handled 100 per cent of its bad debts under a commitment to the State Bank of Vietnam, of which VND1.25 trillion ($56.03 million) was in customer debt repayments. “A debt collection system was also set up, which effectively cut the rate of debt conversion compared to last year,” the report stated.