LienVietPostBank has similar ratings with five other commercial banks of A Chau Bank (ACB), Military Bank (MB), Vietnam International Bank (VIB), Techcombank and An Binh (ABB). (Photo nld.com.vn) Hanoi (VNA) - Moody’s Investors Service on January 2 assigned first-time ratings and assessments to LienVietPostBank.
Under the ratings, Moody’s assigned LienVietPostBank’s long-term local and foreign currency deposits and issuer ratings of B2 with a stable outlook.
The ratings reflected baseline credit assessment (BCA) at B2 and the Government’s support to the bank at a positive level of B1.
BCA at B2 also showed improvements in assets’ quality and the profitability index at the bank. In addition, Moody’s also assigned LienVietPostBank’s short-term local and foreign currency deposits and issuer ratings of Not Prime, Counterparty Risk Assessments of B2 (cr)/NP (cr).
The ratings were released as the bank’s loans mostly focused on enterprises and retail, accounting for 54 percent and 32 percent of its total outstanding loans by the end of June 2017, respectively.
The bank has gradually shifted its lending structure toward retail.
In addition, Moody’s also assessed LienVietPostBank with a high liquidity of 39 percent of its tangible assets by the end of 2016.
As of June 30, 2017, its total deposits accounted for 76 percent of its total assets.
Moody’s expected that the bank’s capital resources would be improved thank to stable mobilisation from individual deposits with low costs, which LienVietPostBank has enjoyed due to its postal network nationwide.
According to Moody’s ratings, LienVietPostBank has similar ratings with five other commercial banks of Asia Commercial Bank (ACB), Military Bank (MB), Vietnam International Bank (VIB), Techcombank and An Bình (ABB).
LienVietPostBank has been the first Vietnamese bank to receive the Asia Pacific ICT Alliance Awards (APICTA) 2017 award for its Vi Viet e-wallet – an online banking service, last month. APICTA is considered as the Oscar Award in the ICT sector in the Asia Pacific region. Vi Viet was awarded the second prize for Financial Industry Application.
By the end of November, the bank’s charter capital reached 6.46 trillion VND (284.3 million USD), total assets hit 154 trillion VND, total capital mobilisation at 141 trillion VND and total debt 98 trillion VND.
It reported a pre-tax profit of 1.7 trillion VND in the first 11 months of the year.
LienVietPostBank has the largest network among joint stock commercial banks, with 200 branches and over 1,000 transaction offices, nationwide.-VNA
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