A VIB logo is seen at the bank's head office in HCM City's District 1. — VNS Photo courtesy of the bank

HÀ NỘI The Vietnam International Bank (VIB) has announced its plan to issue 40 per cent bonus shares to increase charter capital to over VNĐ15.5 trillion (US$665 million).

The plan was published by the bank on Monday after receiving approval from the State Bank of Việt Nam and the State Securities Commission.

As per the plan, each shareholder who owns 100 existing shares will receive 40 new ones. Shareholders should register to receive bonus shares no later than June 10, according to the bank.  

Currently, VIB shares are traded at around VNĐ64,300 apiece, up nearly 100 per cent compared to the beginning of this year. VIB now ranks 18th in the group of companies with the largest market capitalisation at over VNĐ70 trillion.

VIB continues to affirm its impressive business performance thanks to the diversified credit portfolio that has helped reduce concentration risks, especially the negative impact of the COVID-19 pandemic.

As of May 2021, the bank’s bad debt ratio was as low as 1.25 per cent while its restructured debt balance for COVID-19 affected borrowers decreased to about VNĐ200 billion, accounting for 0.1 per cent of the total outstanding loans.

Earlier on March 26, Moody’s Investors Service upgraded the credit rating outlook of VIB to “positive” from its previous “stable”. According to Moody's, VIB had a stable asset quality and high profitability while ensuring sufficient capital sources for sustainable development.

VIB is known as a leading retail bank with an average annual growth rate of over 50 per cent over the past five years. The retail outstanding balance was 87 per cent of total outstanding balance, of which over 95 per cent of retail loans have collateral. VIB is one of few banks with such a high proportion.

The bank has kept leading in growth rate with four key products of auto loans, mortgages, bancassurance and credit cards. VIB has also held the No 1 position in terms of auto loans and bancassurance market share for many years.

Meanwhile, VIB has also pioneered in digital transformation thanks to its focus on developing digital banking and products with high technology and automation content. The bank's MyVIB app has been recognised as the best digital banking application of the year and the best customer experience in Viet Nam by The Asset magazine for four consecutive years. 

In April, VIB launched VIB Online Plus 2in1 - the first integrated credit card and payment card line in Southeast Asia. That marked the pioneering step of a Vietnamese bank in cashless payment in the region.— VNS