Moody’s upgrades VIB credit rating outlook

Transactions at VIB (Photo: VNA)

Hanoi (VNA) - Moody’s Investors Service,one of the world’s leading credit ratings agencies, has upgraded the creditrating outlook of Vietnam International Bank (VIB)’s local currency depositsand issuer ratings to “positive”, from its previous level of "stable".

According to the report issued by Moody’s, VIBcontinues to be included in the group of banks with the highest credit ratingin the local banking industry. This signals Moody’s positive assessment ofdevelopments in the business environment in Vietnam in general and performanceof the country’s banking industry in particular. 

In 2016, VIB’s pre-tax profit experienced ayear-on-year rise of 7 percent to 702 billion VND (30.8 million USD) while itstotal assets rose sharply (24 percent) to 104.5 trillion VND (4.57 billionUSD), and surpassing the yearly target by 16 percent.

The bank’s loan-to-deposit ratio was 65.6percent while its short-term deposit over medium- and long-term loan ratioreached 47.1 percent, which are within the safe limit as regulated by the StateBank of Vietnam.

At the bank’s annual general shareholdersmeeting (GSM) last month, VIB approved a 44.6 percent dividend distributionrate based on its charter capital, including 5 percent in cash and 39.6 percentin bonus shares. 

The bank’s management board also proposed a planof mobilising capital with a maximum amount of 7 trillion VND (308 million USD)for up to 10 years with a view to strengthening its capital adequacy ratio(CAR) and other safety ratios and better satisfying business activities.-VNA

VNA