Many banks make big profit even in bearish market
A number of commercial banks have reported exceeding profit targets very early, while some others have reported difficulty in reaching their destination.
In the third quarter, the banking operation started to be narrowed again in the wake of the central bank request to ask banks to meet the new safety standards under Circular 13, or mobilisaiton and lending of gold was narrowed, while interest rates and exchange rate started the tensions on the market.
As planned, this year Vietnam’s Eximbank set before tax profit targets at 2.2 trillion dong. Till the end of November, the bank reported it achieved 96 percent of the profit target. By mid-December, the pre-tax profit of this bank had reached nearly 2.3 trillion dong. This year, Eximbank is expected to certainly exceed its target.
Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) also has disclosed the parent bank’s profit in first 11 months reached 2.192 trillion dong. President of Sacombank Dang Van Thanh projected that the Hochiminh Stock Exchange-listed bank will surpass 2.4 trillion dong of its profit target for the whole year 2010.
Leaders of the two above banks, said that the targets identified early this year, are quite ambitious, but minimal, which must be completed by a commitment to shareholders, as well as put in the required balance of only financial ratios to assess the stability and efficiency.
In some other banks, including of Military Bank, Ocean Bank, AnBinh Bank, and Habubank, those lenders also released the announcement on the completion of the 2010 profit target, or the possibility to exceed their profit plan in also turn published two months ago.
Quite optimistic as some securities companies have recently made the comments that banking operations in the fourth quarter are significantly more difficult than the third quarter, but there are some “abnormal” factors bringing positive effects: stock market rebounded with a strong rally of VN Index, from nearly 420 points up to 497 points, the investment activities of banks can make a significant boost to profits in order to help them achieve the profit target as planned and more convenient.
However, there are many commercial banks that have had to cut down the profit target due to the unfavourable conditions of the banking sector. Notably, Techcombank has recently had to reduce its own profit targets from 3.207 trillion dong to 2.8 trillion dong this year.
Category: Finance
