VPBank’s second-quarter consolidated profit increased by 34%, sustaining its quality and growth efficiency
  • Total consolidated operating income of the first six month reached VND 14,510 billion, increasing by more than VND 3,213 billion, equivalent to 28%  y-o-y
  • Consolitated profit of the first half year was VND 4,375 billion, growing by more than VND 1,111 billion, equivalent to 34% y-o-y.
  • Deposit balance grew by approximately 8%, while credit growth was 6.8% compared to the end of 2017, and up 10.3% and 18.9% respectively y-o-y.
  • Cost-to-income (CIR) ratio decreased from 35.54% at the end of 2017 to 32.31% in the first half of 2018. Meanwhile,  its capital adequacy ratio (CAR) was at 13.21%, which was much higher than stipulated by the State Bank of Viet Nam
  • NIM increased from 9% at the end of 2017 to 9.42% in the first half of 2018. Return on equity (ROE) and return on assets (ROA) reached 22.36% and 2.46%respectively, outperforming many other Vietnamese banks.

Hanoi, July 20th, 2018 - Vietnam Prosperity Joint Stock Commercial Bank (VPBank) has announced its second-quarter business results. With total income increasing by 28% and profit increasing by 34% y-o-y, VPBank continued to sustain its growth momentum as one of the most effective banks in Vietnam.  

In the first half of 2018, Total Operating Income (TOI) reached VND 14,510 billion, up 28% y-o-y. This is the strong growth in the context of high competitive pressure in the banking sector, especially in strategic customer segments. Other key indicators, deposit and credit balance, increased by 7.99% and 6.8% respectively from the end of 2017.

Besides solutions to promote income growth, VPBank continued to enhance corporate governance solutions and apply modern technologies to operation. Hence, cost-to-income (CIR) ratio decreased from 35.54% at the end of 2017 to 32.31% in the first half of 2018. Thanks to that, VPBank’s profit before tax grew by 34% from VND 3,264 billion in the first half of 2017 to VND 4,375 billion. The high profitability made VPBank one of largest contributors to the state budget. In 2017, total tax contribution of VPBank was VND 2,100 billion.

The second-quarter financial report showed that VPBank has completed its set-forth plan despite increasingly competitive pressure in the market. Capital efficiency indicators remained high in the market, which reaffirmed its right direction and ensured sustainable growth.

Return on equity (ROE) and return on assets (ROA) reached 22.36% and 2.46% respectively, which showed that VPBank was one of the best performing banks in the market. Its capital adequacy ratio (CAR) was at 13.21%. Ratio of short-term funds for long-term loans was kept low at 29.3%.

Strategic segments, consumer finance, retail banking and SMEs, continued to be key contributors to VPBank’s income in the first half of 2018. This period also marked the transformation of the bank’s strategies in business digitization and in high-end customer segment

Specifically, compared to the first half of 2017, the number of customers using VPBank’s digital banking products and services has doubled, from 401,000 to 832,000 customers, of which active users accounted for than a half. Meanwhile, the number of transactions conducted via VPBank’s digital channels also grew from 1 million in June, 2017 to 2 million in June, 2018, accounting for 48% of total transactions. Average online deposit balance increased by VND 5,000 billion to VND 10,897 billion as of June 30th, 2018.  

Earlier this year, VPBank introduced the digital banking foundation, called VPBank Dream, with the aim of optimizing lending services, asset management and financial consultancy for retail customers. This was the first digital platform developed by VPBank, which was to kick off digitization strategy of the bank.

In the card market, VPBank was also the leading bank in terms of growth. According to the report of Vietnam Bank Card Association, the number of cards issued by VPBank accounted for 19% of total cards, standing at No.1. In the first quarter of 2018, the number of cards issued by VPBank accounted for 27.6% of the total number of Master and Visa cards issued in the market. Additionally, VPBank had the highest purchase volume in the market, accounting for 17% of the market in 2017 and 21.1% in the first quarter of 2018.

VPBank has recently launched its affluent banking offering, VPBank Diamond for Vietnam’s increasingly sophisticated customer segment. With this service, VPBank became the pioneer in affluent banking segment. It is expected that the digitization and affluent banking strategies will create growth momentum for the bank in the next five years.

For further information, please contact our hotline at 1900 545 415 or 024 3928 8880 or visit our website at https://www.vpbank.com.vn

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