Vietnam's private lender VIB seeks strategic shareholders: chairman

Vietnam International Bank's (VIB) board of directors is now in discussions with banks and investment funds to find suitable partners for the lender, ensuring a mutually beneficial partnership that goes beyond finance.

The information was released by VIB chairman Dang Khac Vy at the bank’s 2025 AGM on Thursday.

According to VIB’s latest shareholder structure announced at the meeting, the strategic foreign shareholder, Commonwealth Bank of Australia (CBA), no longer holds shares in the bank. CBA became a strategic shareholder in VIB in 2010 and at one point owned up to 20% of the bank's charter capital.

Vy stated that it took VIB over 10 years to secure CBA as its major partner. This strategic partner invested in VIB at the right time, providing significant support to the bank. "CBA trusted the development direction set by the board."

However, about 5-6 years ago, it decided to end its investments in several places, including Australia, and VIB was the last investment to be closed down. CBA invested approximately $175 million in VIB, but earned between $400-500 million in return.

With CBA's divestment, VIB's foreign ownership room has expanded, Vy said, adding that VIB's capital adequacy ratio (CAR) is very strong, and the bank continues to maintain solid growth. However, the board recognizes the need to raise additional capital for further breakthroughs, he noted.

At the AGM, VIB's leadership reported that in 2024, the bank's total assets grew by 20% to nearly VND493.2 trillion ($19.28 billion), its credit outstanding increased by 22% to VND324.6 trillion, and its mobilized capital grew by 15% to VND277.57 trillion.

For 2025, the bank targets a 22% rise in total assets to VND600.35 trillion ($23.47 billion), up 22% in credit outstanding and up 26% in deposits.

In the lending segment, the bank launched attractive campaigns in 2024, such as a VND30 trillion ($1.17 billion) home loan package, auto loan programs, and business loans.

Vy revealed that in the coming months, the retail banking segment will introduce a loan app with "superior features" for home purchases, car loans, business loans, and securities.

In terms of capital mobilization, on February 17, VIB launched a high-yield account with the 1-1-1 formula (1 day generates up to 4.3% annual interest, 1 tap to start earning, 1 step for flexible withdrawal), with an aim of "unlocking idle money" from customers. Within just two weeks, the bank recorded 50,000 customers activating this type of account.

For brand development, in 2024, the bank heavily invested in communication and marketing activities, including the "Say Hi" program. These activities helped increase VIB's brand value by 51% over the year, the highest in the industry, according to Brand Finance.

However, the bank's pre-tax profit in 2024 decreased by 16% compared to 2023. The chairman explained that VIB sacrificed short-term profits for the long-term benefit of customers and shareholders.

Specifically, the bank reduced interest rates in line with the policies of the government and the State Bank of Vietnam; made large provisions for high-risk loans in 2023 and 2024; invested heavily in advanced product and service solutions, digitization, technology, and brand building; and targeted good customer segments to reduce risks.

The bank targets a 22% increase in pre-tax profit this year, reaching VND11.02 trillion ($430.89 million). In the first quarter of 2025, it achieved 20-22% of the year's profit target. Its credit growth reached 3%, while the industry average was about 2%.

The board of directors proposed increasing the charter capital from VND29.79 trillion to VND34.04 trillion ($1.33 billion) by issuing shares from equity to existing shareholders with a maximum ratio of 14% and under the Employee Stock Ownership Plan (ESOP) at up to 0.26%. Additionally, VIB will distribute a cash dividend of up to 7%.

VIB is listed on the Ho Chi Minh Stock Exchange (HoSE) as VIB, which closed Thursday at VND20,000 ($0.78) per share.