Maintaining the top growth of the market, VIB plans to divide bonus shares of 40% in 2021

Vietnam International Bank (VIB) has just published the Annual General Meeting of Shareholders (AGM) documents 2021, proposed 2020 profit distribution plan, 2021 business plan, raising charter capital plan and some other key contents to submit to the AGM. The meeting will be held in Ho Chi Minh city on March 24, 2020.

2021 business plan with pre-tax profit of over VND 7,500 billion

According to VIB’s proposed business plan for 2021, credit balance is expected to reach VND 225,000 billion and VND 235,000 billion is the expected balance of deposit this year.Pre-tax profit is targeted to increase by 29% compared to 2020 at over VND 7,500 billion. mainly focusing not only on mortgage and auto loans but also on fee-based services, non-credit services and digital banking. ROE continues to be at the top of the banking industry, from 28% - 30%.

As the pioneer in the application of international governance standards including Basel II and piloting of Basel III and complying with the safety indicators of the State Bank of Vietnam, VIB continues to research and plan to implement the Basell III pillars to ensure sustainable development, pioneering in effective risk management along with quality growth.

Plan to raise charter capital via bonus shares and public offering

According to the direction of the State bank of SBV, 2021 is the second year that VIB has not paid cash dividends. The bank plans to increase its charter capital to VND 16,000 billion by paying dividends in shares 40% and issuing additional shares. The new charter capital is believed to optimize for the strong growth of total assets and meet safety ratios in business in 2021.

4 years of transformation with the orientation to become a leading retail bank

VIB has been known as a leading retail bank with an average annual growth rate of over 50% in the past 4 years. The retail outstanding balance was 84% of total outstanding balance, of which over 95% retail loans has collateral. VIB was one of a few banks having this high proportion. NPLs plummeted to below 1.5% by the end of 2020 and there has been no outstanding loans at VAMC since 2018.

VIB keeps leading in growth rate with 4 key product of auto loan, mortgage, bancassurance and credit card. VIB has held the No.1 in term of auto loan and bancassurance market share for many years. VIB credit cards continued to stir the market and promote a cashless society in the past year with outstanding features being successfully introduced and applied for the first time in Vietnam. In 2020, VIB set a record in the market for the growth rate of the number of new cards issued and card spending turnover 1.5 to 2 times higher than the industry average. VIB marks new records in Vietnam for the time to register and start using the card within only 15-30 minutes, equal to 1/500 of the average time in the market.

Pioneering in digital transformation with high technology and impressive growth

In 2020, VIB has achieved a breakthrough growth of 300% in the number of customers registering for digital banking through MyVIB application. The number of online transactions was 110%, accounting for 91% compared to the total number of transactions. MyVIB app has been rated as the best digital banking of the year and the best customer experience in Vietnam by The Asset magazine for four consecutive years.