VPB – At the forefront of the consumer finance revolution

■ VPB delivered ROA of 1.9% and ROE of 24.8% in FY16, the highest returns-oncapital among local peers and impressive even in a regional context.
■ FY16 NIM of 7.7% was driven by a shift in loan mix towards higher yielding segments, such as consumer finance, retail, household and micro-SME loans.
■ Strong topline growth in FY14-16, complemented by an improvement in operational efficiency on continued investments into technology.
■ We expect strong earnings growth in FY17-20F with forecasted net profit CAGR of 25.6% and sustained high average ROE of 22.7%.