VPBank's profit ranked fourth, surpassing Agribank

By Minh An - Jan 29, 2018 | 04:20 PM GMT+7

TheLEADERVPBank's profit in 2017 surpassed Agribank and was only lower than that of Vietcombank, Vietinbank and BIDV.

VPBank's pre-tax profit in 2017 was VND8,125 (US$357.5 million), up 65 per cent year over year thanks to its focus on retail banking over the past years.

In 2017, VPBank's total consolidated assets reached VND277,750 billion (US$12.2 billion), up 21 per cent compared with that in 2016.

After listing shares on Ho Chi Minh Stock Exchange (HOSE), VPBank published a separate issue in Q3/2017 and increased its chartered capital to VND15,706 billion (roughly US$692 million).

According to VPBank, the asset growth has created a solid foundation for its operations in the medium and long term and contributed to its positive business results in 2017.

The total operating income of VPBank in 2017 is VND25,023 billion (roughly US$1.1 billion), up 48 per cent compared to that in 2016. Particularly, net interest income from services increased by 70 per cent year over year.

VPBank’s business results in 2017 helped this bank achieve its goal of becoming one of the largest commercial joint stock banks in Vietnam which was in the five-year plan from 2012 to 2017.

VPBank's profit scale in 2017 is only lower than the three state-owned commercial banks which are VietcombankVietinbank and BIDV. The profit of this bank also exceeded a large state-owned bank named Agribank.

The move to focus on retail banking services and products commencing from five years ago has brought great results for VPBank. The revenue from the individual consumer segment, consumer finance as well as small and medium enterprises now accounts for 80 per cent of total revenue of VPBank.

According to VPBank’s report, although this bank is focusing on exploiting risky segments, it still maintains the quality of growth.

In 2017, VPBank has deducted more than VND8,000 billion (US$355 million) of risk provisions which is equivalent to 30 per cent of its net operating income. In addition, this bank has collected around VND3,000 billion (US$133 million) of debt, of which VND1,100 billion (roughly US$49 million) was treated off-balance sheet.