At a VPBank transaction office (Photo: vpbank.com.vn) Accordingto its recent financial statements, VPBank saw positive changes in riskmanagement and asset quality, optimising cost of capital and good growth in theproportion of CASA (Current Account and Savings Account) deposits. In addition,the fee income increased the growth driver for profit and the safety indicatorswere strengthened.
Bythe end of March 31, 2021, VPBank’s total assets were 436.2 trillion VND, up4.1 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.
Interms of capital, equity of the bank by the end of March 31 reached 55.9trillion VND, up 6.1 percent from the same period last year. Deposits fromcustomers reached 232.4 trillion VND, down 0.4 percent while deposits and loansfrom financial institutions and other credit institutions sharply increased by25 percent in the three-month period.
Withthis result, VPBank's efficiency ratios continued to be enhanced and ranked atthe top of the market, with return on asset (ROA) and return on equity (ROE) reaching3 percent and 23.5 percent, respectively.
Inthe first quarter of 2021, fee income continued to make a major contribution tothe bank's revenue with consolidated growth of 42 percent. The main growthdriver in the period came from the promotion of credit card issuance, insuranceservices and payment activities.
Toachieve high profit growth, VPBank has saved surprising operating costs. In thefirst quarter of 2021, the bank only recorded 2.5 trillion VND in operatingexpenses, 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 lastyear, most likely the bank with the lowest CIR in the system in the firstquarter of the year.
Thedigitalisation and customer experience improvement have continued to bepromoted by VPBank and yielded very positive results. VPBank reached 9 milliontransactions a month in March 2021, 2.25 times more than the same period in2020 in terms of the number of transactions. The value of online transactionsreached 128 trillion VND in March, 2.2 times higher than the same period of2020.
Inaddition to the value of enhancing customer experience, increasing utilitiesand benefits in using products and services, the digital transformation alsohelps the bank optimise the process system and operations, streamlining humanresources and improving labour productivity./.
VNA
