VPBank's employees wear face masks. VPBank reduced interest rates for more than 107,000 customers to minimise the impact of the pandemic, corresponding to total outstanding loans of nearly VNĐ140 trillion. Photo VPBank

HÀ NỘI — Việt Nam Prosperity Joint Stock Commercial Bank (VPB) achieved consolidated pre-tax profit of more than VNĐ9 trillion (US$391.9 million) in the first six months of this year, up 37.2 per cent over the same period in 2020.

Of the estimate, branches of banks contributed 88 per cent to the profit. With this result, VPBank's return on assets (ROA) reached 3.3 per cent for the first time, and its return on equity (ROE) reached 25.7 per cent, which are the leading performance indicators in the system of Vietnamese commercial banks at present.

By the end of the second quarter of 2021, VPBank continued to maintain its capital adequacy ratio (CAR) at a high level of 12.3 per cent, according to Basel II standards. Consolidated provision expenses in the first half of the year increased sharply by 35 per cent against 2020 thanks to the promotion of bad debt handling and the improvement of provision for risks.

Loan to Deposit Ratio by the end of the second quarter stayed at 77 per cent, the ratio of funds for medium and long-term loans was at 26 per cent.

VPBank's consolidated operating expenses (OPEX) in the first six months decreased by 7.4 per cent compared to 2020, mainly thanks to cost optimisation and the application of digitisation and automation in various stages.

The consolidated cost income ratio (CIR) continued to be at the lowest level in the system with 23.4 per cent in the first half of 2021, down sharply from 31 per cent in the same period of 2020.

As of June 30, 2021, VPBank's non performing loan ratio (NPL) was controlled at 2.94 per cent. Bad debt handling achieved positive results in the first six months with consolidated risk-resolved debt income reaching VNĐ1.38 trillion, up 34 per cent over the same period last year.

The bank said that in the first six months of 2021, the COVID-19 pandemic continued to significantly affect the economy. Therefore, VPBank actively reduced interest rates for more than 107,000 customers to minimise the impact of the pandemic, corresponding to total outstanding loans of nearly VNĐ140 trillion.

These support measures were offered to both existing and new customers, both mortgages and unsecured loans, both individual and corporate customers in various fields.

VPBank also assisted ministries, branches and localities in pandemic prevention and control, such as donating 715 specialised ventilators worth nearly VNĐ150 billion, sponsoring five mobile container labs for COVID-19 testing that meet World Health Organization (WHO) standards, and donating VNĐ60 billion to the Vaccine Fund.

The bank's digital transformation strategy continued to be conducted on a large scale, with the launch of a series of products designed specifically for each distinct customer segment. This helps customers easily access banking services through suitable products, as well as rich and diverse access channels.

VPBank's customer file accordingly continued to expand, reaching nearly 19 million customers. The rate of new customers opening accounts through digital channels reached 73 per cent, double that of the same period last year. The number of online transactions increased by 200 per cent over the same period in 2020.

The rate of new lending contracts through digitised channels by the end of the second quarter has reached over 80 per cent. Total online deposits have tripled compared to the same period last year. VNS