VPBank announces record pre-tax profit in 2019

Hanoi (VNA) - 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.

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

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

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

VPBank attributed the record result to the breakthrough in the segments of consumer finance, individual customers and small and medium enterprises.

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

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

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

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

VPBank’s return on assets (ROA) ratio at the end of 2019 is 2.4 percent, higher than the ratio of 2.2 percent reported 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./.