Average profit growth of 57 per cent/year

VIB’s annual profit growth, 2016-2022. Photo from VIR.

The intense focus on retail banking has helped VIB create a scale advantage. The business models of auto loans, home loans and credit cards showed their effectiveness, allowing the bank to gain a leading market share in many retail segments.

A customer-centric strategy has helped VIB attract and serve over four million customers and increase customer engagement.

The positive business results from 2022 contributed to the overall efficiency in the six years of transformation (2017-2022), making VIB one of the leading banks in asset size growth, revenue growth, effective cost management and tight risk control. VIB’s profit has grown at a compound annual growth rate of 57 per cent per year over the past six years.

A leader in scale growth

VIB’s growth rate compared to the Top 10 listed banks, 2017-2022. Photo from VIR.

With Vietnam’s economy among the most dynamic in the world, the substantial increase in demand for investment and financial services in recent years has created conditions for retail banks such as VIB to maintain a positive growth rate in the past six years and into the future.

Sustainable business performance

VIB’s business performance compared to the Top 10 listed banks, 2017-2022. Photo from VIR.

VIB has recorded its return on equity (ROE) ratio at over 30 per cent for three consecutive years thanks to its focus on retail and effective operating model.

Attractive dividend payout ratio

VIB’s dividend payout, 2017-2022. Photo from VIR.

With its ROE among the market’s highest, VIB maintained the highest dividend payout ratio at 40 per cent in 2020, and 35 per cent in 2021. The bank is expected to pay dividends at 35 per cent in 2022.

The bank’s Board of Directors has proposed that the 2022 dividend be paid 15 per cent in cash and 20 per cent in shares. VIB’s leaders expect a dividend policy to be developed so that the bank can pay annual cash dividends to shareholders starting in 2023.

The bank with the lowest concentration risk in the market

VIB’s outstanding balance, 2017-2022. Photo from VIR.

VIB’s outstanding retail loans account for up to 90 per cent of its total loan portfolio. Of the total, up to 91 per cent of loans are secured by assets, while the remainder is mainly credit card loans. Meanwhile, the outstanding balance of corporate bonds equals less than 1 per cent of the bank’s total credit balance.

As a result, for five consecutive years, the ratio of provision expenses to VIB’s outstanding loans was only 30-50 per cent of the average of other Top 10 listed banks. This is considered one of the crucial factors that have helped VIB achieve profitability and a high ROE ratio.

Ranked No.1 across several metrics

VIB has been ranked by the State Bank to be the top bank when it comes to capital, profit, asset quality, liquidity quality and sensitivity management criteria.

A pioneer in card and technology trends

Vie, VIB’s AI virtual financial expert. Photo from VIR.

Continuing sustainable growth momentum in 2023

VIB has marked essential milestones on its journey to becoming the leading retail bank in Vietnam during the first six years of its 10-year strategic transformation period from 2017 to 2026.

In a document sent to the AGM, VIB’s Board of Directors outlined the goals for the five-year period from 2022 to 2026, including attracting 10 million customers and achieving an annual compound growth rate of 20-30 per cent each year, thereby sustainably increasing market capitalisation for shareholders.

VIB leaders said they believed the bank would achieve its objectives for 2023 and complete the 10-year transformation goal thanks to its creativity and persistence in large-scale transformation activities, excellent operating model, advanced corporate culture, and its staff’s capability and enthusiasm.

Source: VIR