VPBank posts 173.2 million USD pre-tax profit in Q1 hinh anh 1At a VPBank transaction office (Photo: vpbank.com.vn)
Hanoi (VNS/VNA) - VPBank recorded pre-tax profit of more than 4 trillion VND (173.2 million USD) in the first quarter of the year, an increase of 38 percent over the same period last year.

According to its recent financial statements, VPBank saw positive changes in risk management and asset quality, optimising cost of capital and good growth in the proportion of CASA (Current Account and Savings Account) deposits. In addition, the fee income increased the growth driver for profit and the safety indicators were strengthened.

By the end of March 31, 2021, VPBank’s total assets were 436.2 trillion VND, up 4.1 percent from the end of 2020. Of which, loan balance was 301.1 trillion VND, posting a 3.6 percent year-on-year increase. Consolidated non-performing loans (NPLs) on outstanding loans are at 3.46 percent.

In terms of capital, equity of the bank by the end of March 31 reached 55.9 trillion VND, up 6.1 percent from the same period last year. Deposits from customers reached 232.4 trillion VND, down 0.4 percent while deposits and loans from financial institutions and other credit institutions sharply increased by 25 percent in the three-month period.

With this result, VPBank's efficiency ratios continued to be enhanced and ranked at the top of the market, with return on asset (ROA) and return on equity (ROE) reaching 3 percent and 23.5 percent, respectively.

In the first quarter of 2021, fee income continued to make a major contribution to the bank's revenue with consolidated growth of 42 percent. The main growth driver in the period came from the promotion of credit card issuance, insurance services and payment activities.

To achieve high profit growth, VPBank has saved surprising operating costs. In the first quarter of 2021, the bank only recorded 2.5 trillion VND in operating expenses, down 21 percent year-on-year. The cost to income ratio (CIR) accordingly dropped to 23.5 percent from 33 percent in the same period last year, most likely the bank with the lowest CIR in the system in the first quarter of the year.

The digitalisation and customer experience improvement have continued to be promoted by VPBank and yielded very positive results. VPBank reached 9 million transactions a month in March 2021, 2.25 times more than the same period in 2020 in terms of the number of transactions. The value of online transactions reached 128 trillion VND in March, 2.2 times higher than the same period of 2020.

In addition to the value of enhancing customer experience, increasing utilities and benefits in using products and services, the digital transformation also helps the bank optimise the process system and operations, streamlining human resources and improving labour productivity./.