Vietnam Prosperity Joint Stock Commercial Bank (VPBank, code: VPB) has just announced its business results in 2018.
Accordingly, by the end of 2018, the bank’s consolidated operating income reached more than 31 trillion dong, up 24.2 percent compared to 2017. The consolidated profit before tax reached more than 9.2 trillion dong, an increase of more than 13 percent compared with 2017 and also the highest ever figure of this bank.
Despite of record high profit, leading the private equity banks (at the time of update on 18th January), the bank said that in 2018, with the aim of stabilising the macro economy and ensuring safety in lending activities, the State Bank of Vietnam (SBV) continued to maintain a policy of controlling credit growth cautiously. In this context, the approved credit limit for the parent bank of 17 percent and for FE Credit of 20 percent of were lower than the initial target set by the bank which partly affected the profitability of the bank in 2018. Earlier, at the annual shareholders’ meeting, the bank’s profit plan was approved at 10.8 trillion dong.
In 2018, the bank’s total fee revenue reached over 3.818 trillion dong, up 19 percent compared to the previous year. The net profit from fee income reached 1.612 trillion dong, up 10 percent year over year (y-o-y). Particularly, net profit from parent banks’ fee income reached 1.569 trillion dong, an increase of 67 percent compared to 2017. This is the result of promoting business activities such as insurance, credit cards and other digital banking service.
By the end of 2018, the bank’s total consolidated assets were 323.3 trillion dong, up 16.4 percent compared to the beginning of the year, the owner’s equity was 34.7 trillion dong, outstanding loans reached 230.387 trillion dong (up 17.1 percent y-o-y), mobilised more than 219.509 trillion dong (up nearly 10 percent y-o-y).
Return on total assets (ROA) and return on equity (ROE) reached 2.5 percent and 22.9 percent respectively. Net interest income ratio (NIM) continued to be kept at the highest level of the market of nine percent. Meanwhile, the cost income ratio (CIR) continued to be improved to 34.2 percent compared to 35.5 percent in 2017.
The bank also said that the parent bank achieved a profit of approximately 5.1 trillion dong, an increase of 31 percent over the previous year and accounted for more than 55 percent of the bank’s consolidated profit. The total operating income of the parent banks grew by 29 percent compared to 2017, reaching over 17.7 trillion dong. Excluding the income contribution from subsidiaries, ROE of the parent bank reached 21.1 percent at the end of 2018, higher than 20.5 percent of the previous year. ROA also increased from 1.6 percent in 2017 to 1.8 percent in 2018.
In 2018, VPBank also officially submitted the application to SBV to apply the Circular No. TT41/SBV complying with Basel-2 standards in 2019, becoming one of the first banks in Vietnam to complete the preparation process and ready to comply with Basel-2.
