VIB lending up by 12 per cent while NPLs decreased in first nine months of 2016
VIB lending up by 12 per cent while NPLs decreased in first nine months of 2016
Vietnam International Bank (VIB) lent more in the first nine months of 2016 while seeing a decrease in non-performing loans.
According to VIB’s business results for the first nine months of 2016 released on October 20, lending balance reached VND53.374 trillion ($2.4 billion), equivalent to a 11.7 per cent growth rate against early 2016. Deposit growth rate was 12.1 per cent, reaching VND59.78 trillion ($2.7 billion).
VIB’s non-performing loan (NPL) rate decreased to 1.54 per cent compared to 1.84 per cent and 2.07 per cent recorded at the end of the second quarter of 2016, and end of 2015, respectively.
Fee and commission incomes increased by 41 per cent against the same period last year; VIB’s total assets amounted to VND88.6 trillion ($4 billion), up 5 per cent in comparison with end of 2015. The bank’s capital adequacy ratio (CAR) stood at 15.6 per cent, significantly higher than the 9 per cent ratio required by the State Bank of Vietnam (SBV).
Additionally, according to the Vietnamese banks ranking report released by Moody’s on also on October 20, VIB’s credit ranking was upgraded to B2, listing it in the group of banks with the highest credit rankings in the market.
In the period, the bank earned VND940 billion ($42.15 million) of accumulated profit before provision, up 25.9 per cent compared to the same period last year; meanwhile, the bank’s total operating income increased by 21 per cent in comparison with that in the first nine months of 2015.
In early October, VIB received approval from the SBV to increase its charter capital to VND5.644 trillion ($253 million) from VND4.845 trillion ($217.3 million) by issuing bonus shares. This is in line with the plan passed by VIB’s general shareholder meeting in April 2016.
In terms of digital banking, the number of customers using MyVIB and VIB Internet Banking continues to grow impressively.
Established in 1996, VIB now has 154 branches and transaction offices nationwide and more than 8,000 correspondent banks in 61 countries. Currently, the bank has nearly 4,000 employees serving 1.6 million personal customers and 34,000 corporate customers. Commonwealth Bank of Australia is VIB’s strategic shareholder.
