VPBank’s first quarter profit tripled over the same period

The perfect run

By the end of the first quarter of 2022, the pre-tax profit of the consolidated bank reached over VND 11,146 billion, nearly tripling over the same period last year. This is the record profit in a quarter that VPBank has recorded so far, contributing to bringing the bank’s equity above 95 trillion dong and capital adequacy ratio (CAR) according to Circular 41. over 15%.

Notably, the profit growth rate from the core business of the individual bank reached more than 56%, along with the impressive recovery in business activities of FE Credit, promising to create momentum. for VPBank to make a strong breakthrough in 2022.

In the first three months of the year, credit growth at individual banks reached 10.3%, double the industry average, with the main contribution from strategic segments. Along with that was deposit growth of 11.5%, helping to ensure the bank’s liquidity ratios well. FE Credit, despite having negative credit growth in the previous two quarters, has caught up with a new growth cycle when it achieved an increase of 1.6% compared to the fourth quarter of 2021. VPBank’s consolidated total operating income (TOI) accelerated by over 65% over the same period, reaching VND 18,270 billion. Specifically, the parent bank’s TOI increased by over 133% over the same period.

In terms of revenue structure, consolidated net interest income reached VND 9,888 billion, up 8.4% over the same period and 16% compared to the fourth quarter of 2021, with the parent bank increasing by nearly 30% and over 16% respectively. .

Consolidated service fee income, meanwhile, grew 26.5% year-on-year. This ratio at the parent bank recorded an increase of nearly 30% and at FE Credit was 4.8% over the same period. The growth driver of service fee segment comes from payment activities, income from cards and other services.

Other incomes grew 9 times over the same period, including support fees from the exclusive cooperation agreement on insurance distribution between VPBank and AIA Vietnam Life Insurance Company. Income from debt settlement of the consolidated bank also achieved positive results with VND 714 billion, up 21.3% compared to the previous quarter.

The consolidated cost-to-income (CIR) index continued to be maintained at the lowest level in the market, showing the bank’s outstanding performance in cost management and effective use of every dollar of capital to generate profits. Return on assets (ROA) and on equity (ROE) (excluding extraordinary income) stood at 3.1% and 21.2% respectively.

Scaling up customers on digital platforms

The success of digital transformation in the past years continues to bring great advantages to VPBank in expanding the scale of customers. The number of new customers registering to use VPBank banking services via digital channels in the first quarter of 2022 increased by 10% compared to the end of 2021. The average number of monthly transactions via digital channels increased by 1.7 times. times compared to the same period in 2021. Up to now, the total number of VPBank customers, including the parent bank and subsidiaries, has reached nearly 20 million customers.

The strategy of enhancing customer experience on digital channels through innovative products and services such as the creation of iNICK for accounts and the newly upgraded eKYC platform… has contributed to underpinning the growth of products. loan. In which, the online disbursement rate of mortgage and unsecured loan products reached 80-100%, and the ratio of online savings balance reached 61%.

VPBank’s ecosystem of financial products, services and solutions is diversified with many brands and transaction platforms such as VPBank Prime, VPBank NEO, Race Car, Race Home, VPBank NEO Express and VPBank NEOBiz. Serving a wide range of customer segments and financial needs. In addition, the extension of the partnership with AIA will continue to enrich the bank’s ecosystem with more innovative financial products, services and solutions, serving the needs of healthcare professionals. health and financial protection of customers.

In March, VPBank NEO was honored in the category of “Best E-Banking Application in Vietnam 2021” by The Asian Banker Magazine. The Asian Banker also presented VPBank with the award “Vietnam’s Best Digital Business Model Initiative” for the bank’s innovations to serve diverse customer segments through new products/distribution channels.

Following the achievements of the first quarter, the bank expects revenue in the following quarters to continuously increase while the scale of the banking ecosystem is expanded to the areas of securities and insurance service provision. , through M&A activities such as the acquisition of a securities company and the upcoming acquisition of shares of the insurance company OPES. In which, securities companies contributed revenue to the consolidated bank in the first quarter of 2022. This securities company plans to increase its charter capital to strengthen its business capacity in the near future.

Xuan Thach