VIB 2020 AGM results announcement: Journey to a large scale and quality retail banking

HANOI,Vietnam,July 6,2020 --The Annual General Meeting (AGM) of Vietnam International Bank (VIB) was held on June 30,2020 in HoChiMinh City. All the reports and proposals of Board of Directors (BOD),control board (CB),including proposal about bonus shares and raising capital were duly passed.

VIB

Reporting to the meeting,VIB's board of directors said that the bank had a year 2019 with the strongest and highest growth in the past 5 years,with all business units exceeding the revenue and profit targets: Profit before tax reached VND 4.082 billion,up 1.5 times compared to 2018,exceeded 120 percent of plan; total assets reached VND 185 billion; credit outstanding balance was VND 133 trillion,deposits from customer and valuable papers up 47 percent on year; non performing loan maintained 1,68 percent and no VAMC at all. In 2019,VIB was the first Joint Stock bank to implement 3 pillars of Basel II with CAR ratios at 9,6 percent.

"The strategy to become a large-scale and top-quality bank is that VIB focuses on customers,product,service and digital banking with online selling platform - MyVIB application," chairman of the BOD Mr. Vy Shared at the meeting.

VIB's outstanding personal and micro business customer loan had sharp increase to 83 percent in 2017,then maintained steadily 54 percent and 46 percent consecutively in two year later 2018,2019 and accounted for 85 percent total outstanding loan. VIB is also the leading bank in retail growth with key products such as mortgage loans,credit cards,MyVIB; leading in auto loan market share; no.1 of bancassurance distribution in Vietnam. In addition,VIB is always at the forefront of risk management,early complemented three pillars of Basel II; invests in credit approval system,anti-money laundering system; and always ensures the safety ratios in operation in accordance with the regulations of the State Bank.

Regarding the 2020 business plan,BOD submitted to the AGM a credit growth plan of 24 percent depending on the approval of the SBV's credit growth target. Profit before tax in 2020 is expected to reach 4,500 billion,up 10 percent compared to 2019. VIB BOD also shared that profit in the first 6 months is expected to reach about 2,350 billion,up nearly 30% year over year,and reach 52% of the year plan. Due to Vietnam economy has just been back to normal after Covid-19 recently,VIB has strong belief that this year plan submitted to AGM is feasible.

In response to the question of shareholder about the impact of Covid-19 on VIB's business maintenance and growth,the BOD of VIB shared that from the beginning of Covid-19 outbreak,VIB had paid special attention to ensuring business operations in the new situation such as setting strict regulation to ensure the health of bank staff and guests. Besides,the bank has actively offer interest rates cut from 0.5% to 2% for customers with medium and long term debts who have been affected by the Covid-19 pandemic. Total Outstanding loan for Covid-19 financial support package is over VND 8,700 billion. With the high-quality customer segment and secured loan,the impact of Covid-19 on VIB's loan portfolio is quite low,only about 500 billion equaled to 0,35 percentage of total outstanding loans VND has demand for loan restructuring under the guidance of the SBV. Accordingly,VIB's NPL remained low at less than 2.0% as of May 31,2020.

Besides,VIB has increased in investment and launched digital products and card products to encourage online transactions and non-cash payment,and make economic stimulus. In particular,VIB is the first bank to bring to Vietnam market the modern card technology solution Smart Card,which allows shortened the waiting time record for cardholders to put card into use. At the same time,the bank self-diversified credit card line with outstanding features,which have never been introduced in Vietnam: International debit cards,VIB Premier Boundless,VIB Happy Drive,VIB Zero Interest,VIB Financial Free,VIB Travel Élite and VIB Online Plus. With Online Plus,VIB is the first bank to apply Big Data and AI technology in registering and managing credit cards in the market. These cards have helped VIB become a leading bank in card growth and card spending in Vietnam. This is also the bank's strategy to strongly develop online payment transactions and affirm the pioneer position and actively contribute to the construction of a cashless society in Vietnam.

Regarding the capital plan,the AGM has approved the plan to increase the charter capital to over 11 trillion by distributing bonus shares at the rate of 20%. The AGM also approved the plan and authorized the BOD of VIB to list on the HCM stock exchange (HOSE) by the end of this year after completing the capital raising procedures.

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