VIB 2020 AGM: Journey to Large-Scale and Quality Retail Banking

Vietnam International Bank (VIB) aims to grow into a large-scale and top quality bank in the future.

The message was delivered at the bank’s 2020 annual general shareholders’ meeting held on June 30 in Ho Chi Minh City where all the reports and proposals of the Board of Directors (BOD), including proposal about bonus shares and raising capital, were duly passed.

Reporting to the meeting, VIB’s Board of Directors said that the bank had a 2019 with the strongest and highest growth in the past five years, with all business units exceeding the revenue and profit targets.

Along with this, pre-tax profit reached VND4.082 trillion ($177.5 million), up 1.5 times compared to 2018, and exceeding the plan by 20 per cent; its total asset value reached VND185 trillion ($8 billion); outstanding credit balance totalled VND133 trillion ($5.8 billion), and deposits from customers and valuable papers were up 47 per cent on-year.

The bank’s non-performing loan rate was maintained at 1.68 per cent. In 2019, VIB was the first joint stock bank to implement the three pillars of Basel II with CAR ratios at 9.6 per cent.

“To realise the goal of becoming a large-scale and top-quality bank, VIB focuses on customers, products, services, and digital banking with its MyVIB online selling application,” chairman of the BoD Dang Khac Vy said at the meeting.

VIB’s outstanding personal and micro-business customer loans jumped sharply by 83 per cent in 2017, then stabilised at 54 and 46 per cent in 2018 and 2019, accounting for about 85 per cent of total outstanding loans.

VIB also proves a leader in retail business with key products such as mortgage loans, credit cards, MyVIB; taking the lead in auto loan market share; and holding no.1 position in bancassurance distribution in Vietnam.
VIB is also a leader in retail business with key products such as mortgage loans, credit cards, MyVIB; taking the lead in the auto loan market; and holding the No.1 position in bancassurance distribution in Vietnam.

In addition, VIB is always at the forefront of risk management, completed three pillars of Basel II early; invested in credit approval system, anti-money laundering system; and always ensures the safety ratios in its operations in accordance with central bank regulations.

Regarding the 2020 business plan, the BoD submitted to the shareholders meeting a credit growth plan of 24 per cent depending on the approval of the central bank’s credit growth target. Pre-tax profit in 2020 is expected to reach VND4.5 trillion ($195.65 million), up 10 per cent compared to 2019.

The bank’s pre-tax profit in the first half of this year is expected to reach about VND2.35 trillion ($102 million), up nearly 30 per cent on-year and equal to 52 per cent of the yearly plan. As Vietnam has returned to a “new normal” after the COVID-19 lockdown, VIB has a strong belief that this year’s plans are feasible.

In particular, VIB is the first bank to bring to the domestic market the Smart Card modern card technology solution which helps shorten the waiting time for cardholders to put their card into use. At the same time, the bank’s self-diversified credit card line offers outstanding features, including international debit cards, VIB Premier Boundless, VIB Happy Drive, VIB Zero Interest, VIB Financial Free, VIB Travel Élite, and VIB Online Plus.

With Online Plus, VIB is the first bank to apply big data and AI technology in registering and managing credit cards in the market. These cards have helped VIB become a leading bank in card growth and card spending in Vietnam. This is also the bank’s strategy to strongly develop online payment transactions, making active contributions towards realising the target for a cashless society in Vietnam.

The AGM has approved the plan to increase the charter capital to more than VND11 trillion ($478.26 million) by distributing bonus shares at the rate of 20 per cent. The AGM also approved the plan and authorised the BoD to list on the Ho Chi Minh City Stock Exchange (HSX) by the end of this year, after completing the capital raising procedures.