VIB strengthens its top Moody’s rating position in the latest assessment of the local Vietnam Banking market by Moody’s International Rating Agency

VIB strengthens its top Moody's rating position in the latest assessment of the local Vietnam Banking market by Moody's International Rating Agency

• VIB maintains its position with the highest credit strength rating from local Vietnamese Banks
• VIB is the only Vietnamese bank getting outlook upgraded to positive from stable, indicating the opportunities to get further rating upgrade in the next 12 months.

Moody's has released the new credit rating reports on Vietnamese banks in Sept 2015. All 9 Vietnamese banks rated by Moody's received updated reports on credit ratings in which 8 banks were unchanged compared to old rating reports.  VIB continues to enjoy the highest credit strength rating of B3 (BCA – baseline credit assessment).  The VIB position strengthened with the outlook continuing to improve to positive from stable.  So far VIB is the only bank in Vietnam receiving this change this year. Moody's also affirmed B2 foreign currency deposit rating (ranks highest together with 2 SOE privatized banks),and B2 local currency deposit rating (ranks #3, higher than any other local joint stock bank.) 

Moody's have emphasized VIB's improvements coming from its suitable and prudent strategies in :

1. Maintaining strong capital buffer (highest CAR in the market)
2. Deleveraging, enhancing asset quality & prudent  provisioning
3. liquid balance sheet
4. good corporate governance with the design & implementation of international standards and the participation of strategic shareholder, CBA who owns 20% VIB stake and is one of the 15 safest banks in the world; 
5. risk management & appetite

VIB's equity to assets ratio improved to 10.8% as of June 2015 from 10.5% in December 2014, providing it with the highest capital buffer among the nine Moody's-rated banks in Vietnam. VIB's liquidity position also remains strong, with cash and government bonds accounting for around 32% of assets as of June 2015. The bank's credit growth appetite remains conservative.

Recently, VIB has  been recognized and appreciated by prestigious organizations nationally and internationally such as “Leading SME Trade Bank”, “Leading Partner in Vietnam” awarded by Asian Development Bank (ADB), “Best Banking Deal Vietnam 2015” and “Fastest Growing Retail Bank in Vietnam 2015” awarded by  Global Banking and Finance Review and “The best issuing bank in Asia Pacific in 2014” by IFC

VIB also ended the first half of 2015 with positive results.  The bank achieved 283 billion dong of profit before tax, 87% increase compared to the same period last year. Lending (including corporate bond and VAMC bond) reached VND 48.641 billion, increased 11% compared to Dec 2014. The bank's deposit increased slightly at 1.2%

The ratio of non-performing loans also continued to improve at 2.12%, down from 2.51% as at 31 December 2014.  SBV have already authorised VIB's to increase room for credit growth to 20% in 2015.