VIB leads the banking industry in the Top 50 Most Effective Business Companies in Vietnam 2023Thursday, September 28,2023
AsemconnectVietnam - At the recent Honoring Ceremony of "Top 50 Most Effective Business Companies in Vietnam 2023", there were 7 representatives from the banking industry, including: VIB, LPBank, ACB, TPBank, HDBank, Techcombank and Vietcombank. VIB continues to lead the industry in this year's rankings.
TOP50 is evaluated on the basis of measuring business results of companies for 3 consecutive years, based on 3 growth indicators: revenue, return on equity (ROE) and return on shares. With the consultation of leading economic and business experts from Harvard Business School, the measurement results aim to objectively assess the management capacity of Vietnamese businesses.
As of March 2023, TOP50 capitalization value reached about USD80 billion, accounting for 34% of the entire market capitalization value. In terms of operating efficiency through return on equity (ROE), the average TOP50 ROE reaches 19%, about 1.8 times higher than the ROE of the entire listed market (11%).
TOP50 revenue reached nearly USD42 billion, growing 3.4% compared to 2021, accounting for 21.6% of total listed market revenue. Profit after tax reached nearly USD7.8 billion, accounting for 40% of profit after tax of the entire listed market and 7.3 times higher than the market increase of 5.4%.
In the 3 years 2020-2022, VIB's ROE index is outstanding with an average rate of 30%, while ACB is 25%, TPBank (23%), HDBank (23%), Vietcombank (22%), Techcombank (20%), LPBank (18%).
In terms of revenue, VIB increased on average 30%/year, the highest among the 7 banking industry representatives in the Top 50. In terms of stock price, the profit margin VIB shares bring to investors in the period 2020 - 2022 is 82%.
Not only leading the banking industry in the Top 50 Most Effective Business Companies in Vietnam 2023, VIB has also just been included in the list of Top 10 prestigious and effective Public Companies in 2023 by Vietnam Report, along with other representative representatives. Other industry representatives include Vietcombank, Techcombank, MB, ACB and HDBank.
VIB is always highly appreciated by rating agencies and analysts for its business efficiency thanks to the highest proportion of retail loans in the system.
According to MB Securities (MBS), the important factor helping VIB's ROE to be maintained at a high level compared to the entire industry for many consecutive quarters (29-30%) comes from the abundant non-interest income generated from available equity without the need to increase equity capital. In particular, card fee revenue will be an advantage of VIB thanks to taking advantage of the efficiency of digital transformation on the basis of a large retail customer base.
“VIB is still focusing resources to further increase its card business market share, in addition to taking advantage of its large retail loan portfolio to increase cross-selling activities and launch card products with creativity to maintain the growth rate of this business segment", MBS commented.
In addition, with the proportion of outstanding retail loans accounting for nearly 87% of the total loan portfolio, VIB is one of the banks with the lowest concentrated credit risk in the market. Of these, more than 90% of loans have collateral, mainly houses and residential land with full legality and good liquidity.
With the forecast that credit growth will improve in the second half of this year when economic support measures such as reducing interest rates, VAT, public investment, etc. begin to be effective, analysts expect the Banks with a high proportion of retail loans like VIB have many advantages to improve credit growth and business efficiency as Vietnam is gradually entering the initial recovery phase.
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