VPBank set target for pre-tax profit in 2018 at VND10.8 trillion (US$476.2 million), up 33% year-on-year, following the draft resolution of the general meeting of shareholders 2018.
VPBank to focus on digital banking in the future.
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The bank also aims to keep bad debts under 3%.
At the meeting, VPBank's leaders were optimistic over the target's feasibility, stressing the focus in the next five years on retail banking, SME banking, providing services on financial management and shopping.
As at present, Retail Banking and SME Banking have generated profit in 2017, according to VPBank. It is expected that VPBank will launch the digital banking and Affluent Banking services in June.
To achieve the target of pre-tax profit at VND10.8 trillion (US$476.2 million), VPBank aims for 30% growth in revenue in traditional banking services, and 40 - 50% for FE Credit.
Under this estimation, growth rates on return on equity (ROE) and return on asset (ROA) will be at 27.5% and 2.5%, respectively. VPBank's leaders discussed risk management to be on par with international standard, at the same time to increase the FE Credit's point of sale to 12,000.
On the potential of FE Credit, VPBank informed the company currently account for 50% of the market share in consumer finance. In the future, FE Credit is expected to become an independent company with VPBank being the major shareholder.
VPBank's pre-tax profit in 2017 reached VND8.1 trillion (US$356.6 milion), up 65% over the last year's period, according to the bank's financial statement, while FE Credit accounted for 51% of the bank's total profit in 2017.
The bank's total assets last year reached nearly VND278 trillion (US$12.2 billion), increasing 21% from the previous year.
