Bank's latest results boast a range of healthy indicators.
Vietnam International Bank (VIB) has recently released its third quarter financial statements.
Pre-provision profit stood at VND747 billion ($33.32 million) while profit before tax was VND370 billion ($16.5 million), an increase of 58 per cent year-on-year.
Total lending was VND51.33 trillion ($2.28 billion), 18 per cent higher than in the same period of 2014, including VND44.36 trillion ($1.97 billion) in loans to customers, up 16.2 per cent since the end of 2014. In October the State Bank of Vietnam (SBV) approved maximum credit growth of 25 per cent (from the previous 20 per cent) for VIB this year.
Deposits from customers reached VND50.28 trillion ($2.24 billion), up 2.5 per cent, with non-term deposits increasing 21.1 per cent. Though lending growth was positive the bank’s total assets fell by VND8.15 trillion ($363.57 million), primarily because it decreased most of its deposits on the interbank market given the uncertainty in the market and it also re-structured its government bond portfolio to better suit its investment strategy.
The bank’s non-performing loan ratio now stands at 2.34 per cent, down 0.18 per cent against earlier this year. VIB was one of the first banks to complete a debt-trading plan with the Vietnam Asset Management Company (VAMC).
Its capital adequacy ratio (CAR) remained at 18 per cent - the highest among Vietnam’s large banks. As one of the ten banks selected by the SBV to implement the Basel II risk management standards, VIB quickly kicked off the project with the involvement of highly-experienced experts from its strategic shareholder, the Commonwealth Bank of Australia (CBA), and the Backice and HPT companies.
In a recent ratings report released by Moody’s, VIB continued to lead the credit ratings among the ten large local banks by retaining the highest baseline credit assessment of B3. Among all banks rated B3, VIB is the only local bank whose outlook was increased by Moody’s to “Positive”. In the third quarter VIB became the only bank in ASEAN to win “The Best Segment Solution Award” from MasterCard and its also won the “Vietnam’s Outstanding Innovative Digital Banking Product in 2015” award for its MyVIB mobile banking app, from the International Data Group (IDG).