The massive staff reduction was one of the factors that helped the bank save operating expenses, thereby improving the Cost To Income Ratio (CIR) of the parent bank to 38.8 percent in the first nine months.
The financial report for Q3/2019 published by VPBank showed that the total number of VPBank employees (the parent bank) by the end of September 2019 was only 9,144, declined to 2,324 employees compared to the beginning of the year.
Including subsidiaries, VPBank’s total number of employees (consolidated) by the end of September 2019 was 26,733 employees, declined 696 compared to the beginning of the year. Thus, while drastically reducing staffing at the parent bank, VPBank continued to recruit large numbers of its subsidiaries (mainly in FE Credit).
The financial statements of VPBank also said that the average monthly income of individual bank employees in the first nine months was 24.59 million dong per month, increased from 19.8 million dong per month in the same period last year.
Meanwhile, the average monthly income of employees of both banks and subsidiaries was 20.65 million dong per month, increased from 17.94 million dong per month in the same period last year.
In Q3/2019, VPBank’s consolidated profit before tax reached 2.856 trillion dong, 63 percent higher than the same period. Previously, VPBank’s six-month profit before tax had negative growth. Except for foreign exchange business losses, the remaining businesses had positive results, even growing exponentially.
Specifically, net interest income in Q3 of the bank reached 7.977 trillion dong, increased 32.9 percent over the same period. Profit from service activities increased by 77 percent to 708 billion dong. Gains from trading of trading securities, investment securities reached 145 billion dong and 200 billion dong respectively, surpassed 248 percent and 172 percent.
Meanwhile, due to no longer recording a sudden profit from insurance like last year, profit from other activities was only 549 billion dong, much lower than 866 billion dong achieved in the same period.
With continued drastic staff reduction, VPBank’s operating expenses in Q3 were only 3.122 trillion dong, an increase of 18 billion dong (equivalent to 0.6 percent) compared to the same period in 2018.
The consolidated bank’s nine-month CIR index fell to 34.7 percent from 35.8 percent in the first half. At the parent bank, CIR also decreased from 41.3 percent in late June 2019 to 38.8 percent in late September 2019.
The improvement in cost indexes was a result of adjustments in the business organisation model and operational operations conducted since the end of 2018, VPBank said.
As for risk provisions, the bank made 3.522 trillion dong in Q3, 28 percent higher compared to the same period last year.
With a sharp acceleration in Q3, accumulated in the first nine months, VPBank’s Earnings Before Tax (EBT) reached 7.199 trillion dong, increased by 17.5 percent over the same period. In which, FE Credit’s profit was nearly 3.5 trillion dong, contributing approximately 49 percent to the consolidated bank profit.
Notably, in parallel with the rapid return of profits, VPBank’s non-performing loans had positive changes.
By the end of September 2019, VPBank’s consolidated bad debt was at 3.10 percent. This rate had decreased from 4.24 percent at the time of a year earlier. Especially, non-performing loans of VPBank individually reduced to 2.45 percent at the end of Q3/2019. FE Credit’s bad debt also dropped from 6.36 percent to 5.21 percent at the end of Q3/2019.
Debt settlement from Vietnam Asset Management Company (VAMC) continued to be boosted by the bank in Q3/2019, bringing VAMC bond balance decreased by more than 70 percent compared to the end of 2018, from over 3.1 trillion dong to below 908 billion dong.
