AsemconnectVietnam - Three-quarters of the way through 2024, VPBank recorded a consolidated pre-tax profit increase of more than 67% over the same period, with contributions from the entire ecosystem. The bank maintained stable credit growth, promoted debt collection activities, and continued to strictly control asset quality.

Maintaining growth momentum
At the end of the first 9 months of the year, VPBank's consolidated pre-tax profit reached nearly VND13,900 billion, an increase of more than 67% over the same period in 2023. The parent bank, of which, contributed more than VND13,000 billion, while subsidiaries continued the growth momentum from previous quarters.
The bank's consolidated operating income (TOI) increased by nearly 23% in 9 months, reaching more than VND44,600 billion. The individual bank recorded an increase of more than 26%, reaching VND32,000 billion, with interest income being the main growth driver. The parent bank's cost-to-income ratio (CIR), along with that, was optimized at 24% thanks to comprehensive digitalization and process automation.
VPBank's 9-month business results picture has a significant mark of FE Credit when the third quarter reported a profit of nearly VND300 billion. This is the result of the consumer finance company's strong restructuring process, prioritizing the selection of quality customer segments, promoting debt collection and refining the operating apparatus.
Notably, the efforts to promote debt collection and apply digital technology throughout also brought sweet fruits to the whole group when the collection from consolidated risk-handled debt reached more than VND3.2 trillion in 3 quarters, an increase of more than 90% over the same period. Thanks to the application of diverse bad debt handling measures, the non-performing loan (NPL) ratio according to Circular 11 of the parent bank was maintained at below 3% as prescribed by the State Bank of Vietnam (SBV).
At the end of the third quarter, outstanding credit including customer loans and corporate bonds of individual banks reached more than VND581,000 billion, up more than 10% compared to the beginning of the year and higher than the industry average (8.5%). Credit was disbursed into diverse segments and industries in the economy, with key products such as auto loans, credit cards, etc.
Along with the credit growth of the parent bank, core credit from the consumer finance segment of FE Credit continued to maintain growth momentum compared to the end of the year, with disbursement turnover in the first 9 months of 2024 reaching the same level as the whole year of 2023, showing that customers' spending needs are gradually returning.
Accompanying the Government and the State Bank of Vietnam to support people and businesses affected by the recent Typhoon Yagi, VPBank has implemented a program to reduce loan interest rates by up to 1%, aiming to restore production and business, and stabilize the macro-economic situation.
Safe and effective operations
Meeting the demand for stable loan growth, VPBank's customer mobilization and valuable papers are regulated in line with credit growth, in order to improve the efficiency of the balance sheet.
The bank continues to optimize its customer mobilization portfolio and diversify international medium- and long-term capital sources. In the third quarter, VPBank and the Japan Bank for International Cooperation (JBIC) signed a credit contract worth up to USD 150 million to finance renewable energy and power transmission projects in Vietnam, contributing to the realization of the national goal of reducing net emissions to zero by 2050.
The cost of capital of individual banks, accordingly, continued to be optimized at 4.1% in the third quarter and decreased by more than 2% compared to the whole year of 2023. Liquidity safety ratios such as LDR ratio (82.3%), short-term capital ratio for medium and long-term loans (24.6%) are all at good levels compared to the regulations of the State Bank of Vietnam.
The capital adequacy ratio (CAR) of the consolidated bank reached 15.7%, continuing to lead the whole industry, creating a strong growth foundation in the coming time.
Optimizing opportunities, leveraging strengths
With a broad vision, in the third quarter, VPBank officially opened its first flagship branch in Ho Chi Minh City, becoming a pioneer for the future banking trend in Vietnam in the digital era and supporting the bank on its path to conquering the international market.
The strategy of investing in a new branch model, with a chain of utilities, technology, products and services that are superior and meet international standards, is expected to meet the diverse needs of many different customer groups, helping to enhance the experience, retain existing customers and attract potential customers, including international customers from the emerging FDI segment.
Seizing the opportunity from the strong FDI wave flowing into Vietnam, while optimizing the cooperative relationship with strategic partner SMBC, the decision to expand operations to the segment of large corporate customers, multinational corporations and FDI enterprises is one of the bank's strategic steps. After nearly 2 years of operation, VPBank has added a portfolio of FDI customers of more than 500 enterprises, and a large scale of human resources of each enterprise that can become potential individual customers of the bank in the future.
The third quarter witnessed the cooperation between VPBank and Lotte C&F Vietnam, which became a premise for both sides to exploit their mutual strengths and take advantage of opportunities from the strong purchasing power of the market of nearly 100 million people. While VPBank provides a wide range of financial solutions, products and services, along with abundant resources for businesses in the group's ecosystem to develop, Lotte C&F helps connect and introduce VPBank's product chain to member companies, supporting the bank to expand its network of operations and increase market share in the FDI customer segment.
In addition, the bank has become a strategic partner of electric vehicle manufacturer BYD in Vietnam, providing credit packages for car buyers with preferential loan policies and streamlined loan mechanisms.
VPBank's brand value in 2024, according to the latest assessment by Brand Finance, has increased by nearly 6% compared to 2023, reaching USD1.35 billion, putting the bank in the Top 10 most valuable brands in Vietnam in 2024.
N.Nga
Source: VITIC/Tinnhanhchungkhoan