VPBank announces today that it has redeemed all VAMC bonds ahead of schedule, setting stage for a rise in profits in the upcoming years.
In 2019 the bank has redeemed the remaining VAMC bonds worth VND 3,000 billion. Especially, the bank only had to make provision expense of VND 1,400 billion for such redemption, equivalent to 45%, which is the best among the banks that have fully redeemed VAMC bonds. VPBank is one of a few banks to have fully redeemed VAMC bonds so far.
Full redemption of VAMC bonds is one of VPBank's most important targets in 2019, though this is forecasted to affect the profit target for the year. This is also the reason why the bank set a modest profit growth target for 2019 compared to previous years. The vigorous action to redeem the bonds helped lower the NPL ratio from 5.73% in Q3 2018 to 2.84% in the same period this year.
At the same time VPBank has demonstrated strong determination to restructure itself and increase productivity and efficiency by improving processes and adopting technology, thus greatly improving asset quality. The full redemption shows the leadership's determination to improve asset quality and sustainably drive profits going forward.
By the end of November, VPBank's profit before tax was VND 9,400 billion, nearly 99% of the full-year target and up 26.4% year over year. Credit growth reached 15.5%, much higher than the industry average. The total operating income still outperformed other private banks, reaching nearly VND 33 trillion and up nearly 22% year over year. With this positive result, the leadership is confident that the bank will exceed the profit target of VND 9,500 billion by 10%.