Business

VPBank announces record pre-tax profit in 2019

The Vietnam Prosperity Joint Stock Commercial Bank (VPBank) announced a record consolidated pre-tax profit of 10.3 trillion VND in 2019 (447 million USD), exceeding 9 percent of the yearly plan and up 12.3 percent compared to 2018.
VPBank announces record pre-tax profit in 2019 ảnh 1Transactions at VPBank (Source: VPBank)

Hanoi (VNA) - The VietnamProsperity Joint Stock Commercial Bank (VPBank) announced a record consolidatedpre-tax profit of 10.3 trillion VND in 2019 (447 million USD), exceeding 9 percentof the yearly plan and up 12.3 percent compared to 2018.

With the result, VPBank hasofficially joined the list of the few banks with profit of over 10trillion VND.

The bank's total consolidatedoperating income last year reached 36.35 trillion VND (1.57 billion USD), anincrease of 20.3 percent compared to the previous year.

Consolidated credit growthreached 17.6 percent, higher than the average growth of the whole system.Deposit growth rate reached 23.7 percent compared to 2018, helping the bankensure capital adequacy and expand business operations.

VPBank attributed the recordresult to the breakthrough in the segments of consumer finance, individualcustomers and small and medium enterprises.

Thanks to the exploitation ofexisting individual customer base and search for new customers, as well as theexpansion of the ecosystem via diverse financial products and services,profit generated from the individual customer segment has risen by morethan 120 percent compared to 2018. This is the strongest growth recorded in theindividual customers segment of VPBank so far.

The corporate customer segmenthas also made impressive advances in the past year. In particular, profitearned from the small and medium enterprise segment increased by 36 percent.

At the end of 2019, VPBank'sconsolidated bad debt ratio was 2.95 percent. The bank has also settled all theoutstanding bonds worth more than 3.1 trillion VND (134 million USD) at the VietnamAsset Management Company (VAMC) in 2019.

In addition to the control ofbad debt, the bank's operating efficiency in the past year has also improvedremarkably thanks to the focus on refining the organisational structure,optimising the system of processes, upgrading business methods and boostingproductivity.

VPBank’s return on assets (ROA)ratio at the end of 2019 is 2.4 percent, higher than the ratio of 2.2 percentreported at the end of 2018. Return on equity (ROE) ratio reached 21.5 percent,higher than the ratio of 20.7 percent reported at the end of 2018./.



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#Vietnam Prosperity Joint Stock Commercial Bank (VPBank) #pre-tax profit #credit growth #deposit growth #expand business operations #consumer finance #individual customers #small and medium enterprises #Vietnamplus #Vietnam News Agency
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