Stable business growth
Total revenue of VIB in quarter I (Q.I) was VND2.260 billion, of which service revenue reached VND411 billion, accounting for 18%. Operating expenses (OPEX) reached VND1.029 billion. The bank saw a rise in cost to income ratio (CIR) to 46%. Profit before tax (PBT) was VND1.075 billion. From the beginning of the year, VIB has promptly taken actions on cost-cutting and actively participated in a programme to prevent Covid-19, set up by the State bank of Vietnam (SBV) and the Government. The bank’s leader has proactively reduced salaries to support customers.
Maintain a strong balance sheet in the context of market volatility
As of March 31, 2020, total assets of the bank reached VND193 trillion, while outstanding credit balance reached VND135 trillion, up 4% compared to the beginning of the year. Non-performing loans (NPL) stood at 1.8% without bad debts at VAMC. With a tight and flexible risk appetite, the bank has maintained prudential ratios and safety ratios, of which Basel II capital adequacy ratio of 9.5% compared to the minimum requirement of 8%, the loan-to-deposit ratio was 76.5% compared to the ceiling of 85% and the ratio of short-term capital used for medium and long-term loans was at 35% compared to the ceiling of 40% regulated by SBV.
VIB’s asset quality once again was confirmed when it became the first bank in Viet Nam to announce the completion of Basel II three pillars on December 19, 2019. In the first quarter, VIB also continued to reaffirm its capacity and reputation through IFC trade finance limit increasing to US$144 million.
The leading bank in service and online utilities
With a view to supplying convenient and safe transactions for customers amid the Covid-19 pandemic, VIB actively contributes solutions to evolve a non-cash society under the direction of the Government. In the light of pioneering payment technology and superior features, VIB customers can experience online payments easily, conveniently and in a short time. As a result, VIB is the top 3 banks with the highest online card spending in Viet Nam.
In the first quarter of 2020, VIB continues to invest in Big Data and AI technologies to implement solutions to optimise online spending via credit cards for individual customers with a simplified credit card approval process, especially fast online approval within 30 minutes; shorten the waiting time for using card to 3-4 hours; more utilities such as up to 6% cashback for online transactions, discounts up to 50% and 0% interest instalments. Since the beginning of March, VIB has applied a free policy for customers when making online transfer transactions to encourage cashless transactions.
During the Covid-19 pandemic, outstanding incentives, convenient experience, secure payment and optimal security are the main reasons that promote customers to switch to card payments, Internet banking and mobile application of VIB. Compared to the same period of 2019, the number of new VIB credit cards opened in the first quarter increased by more than 40%, the number of transactions via credit cards increased by over 60%. By the end of the first quarter of 2020, VIB also recorded impressive growth of over 140% in terms of number and value of transactions via Internet Banking and MyVIB applications.
Protecting human health, keeping business continuity and ensuring social responsibility
As soon as the outbreak of Covid-19 occurred, to protect the health of employees and customers, VIB quickly established the steering committee on Covid-19 prevention, strongly communicated and instructed its employees to proactively prevent and protect themselves and the community; provided sufficient equipment such as masks, hand sanitiser, gloves and disinfection cabinets for employees and customers. VIB was also one of the first banks to offer free masks and hand sanitisers to all customers coming to the branch at the first appearance of Covid-19 in Viet Nam.
VIB has designed a business continuity plan (BCP), flexibly applied telecommuting to ensure smooth business in its branch network, the continuity and proactive approach in providing products and services to customers. At the same time, to increase investment in technology systems to support employees working from home and to help social distancing at workplaces. The bank reviewed all risk appetite, conducted stress tests and thoroughly implemented the savings and cost-cutting to enhance customer support and minimise the negative impact of the disease on business results.
Proactively following the process of the pandemic, seriously implementing the direction of the Government and the SBV, VIB is one of the pioneering banks to offer support packages for both existing and new loans, with support interest rates up to 2.0%. Besides, in response to the programme set up by SBV, VIB has donated VND ]10 billion to prevent the Covid-19 pandemic with millions of medical masks and protective clothing. Initially, VIB has supplied 5 million medical masks directly to the Ministry of Health to support doctors and the front-line forces in April 2020. In addition, VIB Trade Union has also deducted half a billion dong from the Trade Union fund to support the movement “Joining hands in the fight against Covid-19, drought and saltwater intrusion in the Mekong Delta provinces” by the Trade Union SBV.
VIB leaders said that, in addition to timely and practical support to customers, promoting non-cash payments, ensuring safe and smooth operation, VIB will always stand side by side with customers, partners, the State Bank and regulatory agencies to cushion the blow of Covid-19 on the life and the economy and prioritise all resources to maintain safe and sustainable business activities.