VPBank posts 44 per cent increase in pre-tax profit
VPBank posts 44 per cent increase in pre-tax profit
VPBank posted pre-tax profit of more than VND2.56 trillion (US$110.3 million) in the second quarter of the year, a 44 per cent year-on-year increase.
VPBank on Tuesday announced its business results in the first half of the year with strong growth in both profit and total operating income, thanks in part to its efforts to improve process and organisation structure as well as labour performance.
Figures released from the bank showed its revenue in the second quarter rose by 11 per cent to VND8.86 trillion.
Credit and deposit growth in January-June increased by 11 per cent and 14 per cent, respectively, compared to the end of 2018.
Its total operating income in the first six months reached VND16.8 trillion while pre-tax profit was more than VND4.3 trillion. These represented 23.3 per cent and 23.4 per cent year-on-year increases, respectively.
Net interest income was still the main revenue source of the bank in the period, reaching VND14.4 trillion, with positive contributions from retail, consumer finance and small and medium enterprises.
Notably, net profit from service activities in the second quarter helped maintain strong growth momentum from the beginning of the year, exceeding VND1.2 trillion, up 104 per cent over the same period in 2018 and up 36.8 per cent compared to the previous quarter.
As of June 30, VPBank’s consolidated cost-to-income (CIR) ratio reached 35.8 per cent, down 2 per cent from the previous quarter and at the low level in the banking system. Its revenue-on-total-asset ratio reached 9.7 per cent – a competitive level in the market.
In addition, other indexes such as net interest margin (NIM), return on equity (ROE) and return on asset (ROA) were at relatively high levels at 9.4 per cent, 19 per cent and 2.1 per cent, respectively. The bank’s capital adequacy ratio (CAR) according to Basel II’s standard was 11.2 per cent – well above the State Bank of Viet Nam’s requirement.
VPBank has accelerated efforts to resolve its bad debts at the Viet Nam Asset Management Company (VAMC) and expects to resolve all of them by the end of this year. In addition, the rate of bad debts at the bank reduced from 2.6 per cent in March to 2.4 per cent in June thank to improvements in risk management and application of automatic credit handling.
In the first half of the year, VPBank was given approval from the central bank to apply Basel II which would be a foundation for adjustment of its credit growth from 12 to 18 per cent this year,.
The bank has been focusing on improving labour productivity, re-organising structure, maximise process and operating systems this year.
