With a term of five years, the IFC-led loan aims to support VIB to boost its loan portfolio for individual customers who are looking to buy, build, and repair houses. Meanwhile, at least 30 per cent of the disbursement value will be financed for home loans worth less than $35,000.

VIB received $150 million loan disbursement from IFC

Established partner relationship since 2011, IFC has provided VIB with many medium and long-term direct credit packages and hundreds of millions of USD worth of syndicated loans.

VIB is also one of the most active banks in the IFC's Global Trade Finance Programme, with a trade finance limit of up to $144 million. In 2021, the total disbursement amount for VIB via IFC's guarantee in GTFP reached over $242 million, up 17 per cent on year.

“IFC is proud to support VIB with this loan, which will help make more home loans available to low- and middle-income families. This will, in turn, boost the development of the housing sector, create more jobs and spur economic growth in the country,” said Allen Forlemu, IFC Regional Industry director for Financial Institutions Group, Asia-Pacific.

Han Ngoc Vu, CEO of VIB said, “In the context of the global economy sending many warnings over a looming recession, the international capital market will also suffer certain impacts. IFC's continued disbursement of a loan with a term of up to five years to VIB continues to affirm VIB's prestige and capacity in the international capital market, as well as the trust of its partners for the bank. The capital from this new loan will be added to the bank's capital structure, used to better meeting customers’ demands and enhancing stability in the face of market fluctuations."

Le Quang Trung, head of Treasury of VIB, and representatives of IFC at the loan announcement ceremony

In March, VIB also mobilised a syndicated loan worth $260 million from the Asian Development Bank and some major banks in the region.

VIB has just announced its business results for the first nine months of 2022 with outstanding performance, risk management, and liquidity indicators. Along with the main driving force from retail credit, the bank also takes a lead in the banking system with its ability to diversify revenue and manage costs effectively.

The bank's pre-tax profit reached VND7.8 trillion ($314 million), up 46 per cent over the same period last year. The return on equity reached 30 per cent, which is among the top in the market. Over the same period, total revenue increased by 29 per cent to over VND13.3 trillion ($535.5 million).

Non-interest income was more than VND2.4 trillion ($96.6 million), contributing 17 per cent to total operating income. Operating expenses were well controlled at around VND4.6 trillion ($185.2 million) with a 12 per cent increase, far less than the revenue increase.

As of September 30, VIB had total assets worth VND341 trillion ($13.7 billion), an increase of 10 per cent compared to the end of 2021.

The credit balance was VND228 trillion ($9.18 billion), up 12 per cent from the end of 2021. VIB is one of the banks that has the lowest credit risk in the market, where the risk is well diversified. The bank’s outstanding retail loans account for up to 90 per cent of the total loan portfolio, with over 90 per cent of loans secured by assets.

In the August announcement, VIB was one of the few commercial banks to be ranked the highest by the State Bank of Vietnam for 2021, based on the evaluation results, with high scores on capital adequacy, asset quality, governance, business results, and liquidity.

In addition, VIB is the first bank to complete three Basel II pillars by the end of 2019. The bank also applied Basel III standards on liquidity risk management in 2021. VIB is one of the few banks to issue audited financial statements for 2020 and 2021 in line with International Financial Reporting Standards.