Vietnam International Commercial Joint Stock Bank (VIB) has revealed its business achievements for the first 9 months of the year before shifting to list shares to HoSE. For this period, VIB recorded total revenue of 7,854 billion dong, increased by 34% compared to the same period last year.
In which, revenue from the service activities of the bank reached 1,637 billion dong, accounting for 21% of the total revenue. The retail revenue reached more than 5,700 billion dong, representing an increase of 41% over the same period in 2019. The operating expenses ratio remained at 40%, and the provision expenses are up 27% year over year.
The accumulated pre-tax profit of the bank for the first 9 months of 2020 reached 4,025 billion dong, approximately equal to the whole year of 2019 (4,082 billion dong). In particular, in the third quarter of 2020 alone, the pre-tax profit was 1,688 billion dong, accounting for nearly 42% of the first 9 months' profit. This value represented an increase of 30% and 52% over the second quarter of 2020 and the third quarter of 2019, respectively. The average ROE was 28.9%, among the highest in the industry.
As of September 30th, 2020, the total assets of VIB were over 213,000 billion dong. The credit balance reached over 151,000 billion dong, with a 14.2% increase over the beginning of the year, nearly three times higher than the industry average.
The Non-Performing Loan (NPL) ratio is lower than 2%, down from the second quarter. Thanks to strict and flexible risk management, the bank has maintained safe ratios. The Basel II capital safety ratio was over 9.5%, compared to the minimum level of 8% required by the State Bank. The loan-to-deposit ratio was 77% (compared to the ceiling of 85%) and the ratio of short-term capital for medium- and long-term loans were at 32% (compared to the ceiling of 40%).
In early October, the Board of Directors of VIB approved a resolution of canceling the registration of transactions on the Unlisted Public Company Market (UPCoM). They prepared for the listing of nearly 1 billion shares of VIB on Ho Chi Minh City Stock Exchange (HoSE) in the next month.
Previously, VIB was approved by the State Bank to divide bonus shares at the rate of 20% for existing shareholders to increase its charter capital to more than 11,094 billion dong.
The Board of Management informed that they would implement the plan of increasing the capital before December 31st, 2020, after the completion of listing VIB shares on HoSE.
Regarding the recent stock market situation, the price of VIB shares experienced a sharp increase of approximately 150%. Ms. Ngo Minh Hien and Ms. Le Dieu Linh purchased 3.2 million and 2.4 million shares, respectively. Ms. Ngo Minh Hien is the wife of VIB's deputy general director cum director of retail banking, and Mrs. Le Dieu Linh is the wife of VIB's CFO.
Currently, the price of VIB stock on the market was at VND 33,000 a share (opening price on the session of October 12th, 2020). The market capitalization was estimated at more than 30,000 billion dong.
Recently, VIB is the first and only bank in Vietnam to successfully apply Big Data and AI technology to optimize the process of issuing credit cards. The Online Plus card line - the specific card for online shopping with cashback up to 6% and card transaction fraud insurance up to 105 million dong p.a. - is initially applied.
Users can register to open an Online Plus card through a computer or smartphone without proof of income or going to a bank branch. They can receive the notice of card limit approval and use the card immediately within 15-30 minutes if all criteria of the bank are met. Thanks to this technology, the time of receiving and using cards is shortened at a record level, only 1/500 of the average time on the market.
These are opening activities in VIB's strategy to gain a head start of the strong digital transformation in the banking industry and the trend of non-cash spending in Vietnam.