Strong growth in revenue and profit, along with improvements in operating cost and asset quality, has been maintained over the past three months, according to VPBank's 3Q2019 financial statement.
By the end of the first 9 months, the bank’s consolidated credit growth increased by 14.7%, which was higher than 8.4 % average rate of the banking sector. Meanwhile, deposit grew at 19.9%. Consolidated TOI reached VND 26,333 billion, up 19.1% y-o-y, equivalent to 23.9% excluding the extraordinary income from the Bancassurance. In the 3Q2019 alone, TOI increased by 25% y-o-y and 7.1% vs 2Q2019.
Consolidated profit before tax reached VND 7,199 billion by the end of September, up 17.5% y-o-y. If excluding the Bancassurance income recorded in the last year, the Bank’s profit before tax grew at 36.6% y-o-y.
NII still contributed significantly to consolidated TOI, reached VND 22,428 billion, up 23% y-o-y. NFI increased impressively to 93.4% y-o-y, reaching VND 1,942 billion, which showed the diversity in revenue sources.
Improved asset quality
By the end of September, consolidated NPL was at 3.1%, down from 4.24% last year. NPL of the bank standalone decreased at 2.45% whilr that of FE Credit also decreased from 6.36% to 5.21% in 3Q2019.
The Bank continued focus on VAMC debt settlement in 3Q2019, handling more than 70% of VAMC outstanding loans as compared to the end of 2018, from VND 3,100 billion to VND 908 billion. Low NPL rate and increasing VAMC debt settlement have improved asset quality and ensured stable profit growth in the upcoming time.
Consolidated operating expense grew at 17.3% y-o-y, which was lower than income growth rate of 19.1%. Thanks to that, consolidated cost-to-income ratio (CIR) decreased from 35.8% in 1H2019 to 34.7%. The improvement in cost metrics resulted from process improvement, organizational refinement. The bank-standalone operating expense was up only 11.6% y-o-y while that of 3Q2019 was even down 4.3% from 2Q2019. The bank-standalone CIR decreased from 41.3% in 2Q2019 to 38.8% in 3Q2019.
The increasing profit has enhanced efficiency metrics. ROA grew from 2.1% in 1H2019 to 2.3% by the end of September, 2019. ROE also increased from 19% in 1H2019 to 20.4% in 3Q2019. CAR reached 11.4% per Basel II standards, maintaining higher than the requirements of the State Bank. The enhancement in efficiency metrics and asset quality will build a solid foundation for future growth.