Hanoi (VNS/VNA) - VPBank postedpre-tax profit of more than 2.56 trillion VND (110.3 million USD) in the secondquarter of the year, a 44 percent year-on-year increase.

VPBank on Tuesday announced its businessresults in the first half of the year with strong growth in both profit andtotal operating income, thanks in part to its efforts to improve process andorganisation structure as well as labour performance.

Figures released from the bank showed its revenuein the second quarter rose by 11 percent to 8.86 trillion VND.

Credit and deposit growth in January-Juneincreased by 11 percent and 14 percent, respectively, compared to the end of2018.

Its total operating income in the first sixmonths reached 16.8 trillion VND while pre-tax profit was more than 4.3trillion VND. These represented 23.3 percent and 23.4 percent year-on-yearincreases, respectively.

Net interest income was still the mainrevenue source of the bank in the period, reaching 14.4 trillion VND, withpositive contributions from retail, consumer finance and small and mediumenterprises.

Notably, net profit from service activitiesin the second quarter helped maintain strong growth momentum from the beginningof the year, exceeding 1.2 trillion VND, up 104 percent over the same period in2018 and up 36.8 percent compared to the previous quarter.

As of June 30, VPBank’s consolidatedcost-to-income (CIR) ratio reached 35.8 percent, down 2 percent from theprevious quarter and at the low level in the banking system. Itsrevenue-on-total-asset ratio reached 9.7 percent – a competitive level in themarket.

In addition, other indexes such as netinterest margin (NIM), return on equity (ROE) and return on asset (ROA) were atrelatively high levels at 9.4 percent, 19 percent and 2.1 percent,respectively. The bank’s capital adequacy ratio (CAR) according to Basel II’sstandard was 11.2 percent – well above the State Bank of Vietnam’s requirement.

VPBank has accelerated efforts to resolveits bad debts at the Vietnam Asset Management Company (VAMC) and expects toresolve all of them by the end of this year. In addition, the rate of bad debtsat the bank reduced from 2.6 percent in March to 2.4 percent in June thank toimprovements in risk management and application of automatic credit handling.

In the first half of the year, VPBank wasgiven approval from the central bank to apply Basel II which would be afoundation for adjustment of its credit growth from 12 to 18 percent this year.

The bank has been focusing on improvinglabour productivity, re-organising structure, maximise process and operatingsystems this year. — VNS/VNA