Banks hesitate to report H1 profit
Some commercial banks have started to publish profit in the first six months of this year but most are hesitant in reporting profit for different reasons.
Ten days after the end of the first six months, the market has received basic information about the business results of some commercial banks.
Vietnam Commercial Joint Stock Bank for Foreign Trade (Vietcombank-VCB) made the earliest fiscal report on June 26, with total assets as of June 2012 at over 392 trillion dong, up 6.5 percent from late 2011, total deposits from the economy were estimated at more than 260 trillion dong, up 7.5 percent compared to the end of 2011, total deposits from population were estimated at nearly 137 trillion dong, up 12.2 percent on year and credit as of the end of June 2012 was estimated at more than 215 trillion dong, growing 3.6 percent from the end of 2011.
Regarding profit, till the end of June, Vietcombank’s pre tax profit was estimated at 2.6 trillion dong, lower than the same period last year by 15%.
Similarly, Dong A (East Asia) Commercial Joint Stock Bank (DongABank-EAB) said that its total pre tax profit in the first half of 2012 (including subsidiaries) was 776.548 billion dong, up 14.8 percent over the same period in 2011, equivalent to 51.77 percent of the year’s plan, partly thanks to its H1 credit growth at 90.69 percent of the year’s plan.
Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank-STB) estimated to gain about 1.7 trillion dong pre tax profit in the first half of this year, rising 14 percent from the same period last year and ensuring the year’s plan progress (3.4 trillion dong in 2012).
So far, only these three members have given profit figures for the first six months in a relative way with different information channels. With Vietcombank and Sacombank, formal and sufficient report is expected to be released soon because these are two listed members. Meanwhile, although being un-listed bank, EAB has periodically active and pretty soon information practices to shareholders over the past years.
The remaining banks have not made specific data, even members that usually announced performance soon previously. For example, after listing, Vietnam Commercial Joint Stock Bank of Industry and Trade (VietinBank-CTG)’s business results were often updated sufficiently and earliest in the banking system. But, at the meeting to carry out the tasks in the last half of this year on July 8, the lender’s operation situation in H1/2012 has not been widely disclosed. Or at Vietnam Export Import Commercial Joint Stock Bank (Eximbank-EIB), a few years ago, the bank’s operation results were even updated monthly, creating conditions for shareholders and investors to grasp information quickly. However, so far, the bank’s performance in H1/2012 has not been unveiled yet.
It is now too early to define the profit situation of banks in H1/2012. But, there have been many factors that have been adversely affecting the general results, such as highly increasing bad debts in Jan-Jun. As of the end of June, the bad loans ratio climbed to 4.47 percent from 3.07 percent by the end of 2011. In addition, credit virtually did not grow, by the end of June, credit growth was only 0.76 percent from the end of 2011.
Even in three aforementioned members, Vietcombank’s pre tax profit in H1/2012 of 2.6 trillion dong was very high in absolute value but it fell 15 percent from the same period last year. Notably, this figure is associated with the scale of VCB’s total equity of up to more than 41 trillion dong while it was only 26.435 trillion dong in the same period last year.
Category: Finance
