Vietnam Commercial Joint Stock Bank for Foreign Trade (Vietcombank-VCB) has recently reported its business performance for the first half of 2012 whereby till the end of June 2012, the bank’s total assets are estimated to have reached more than 392 trillion dong, rising 6.5 percent from the end of 2011.
Of which, the total capital mobilisation from economy is estimated at over 260 trillion dong, up 7.5 percent on year and total deposits from people at nearly 137 trillion dong, growing 12.2 percent on year.
The aforementioned results also matched with the general capital mobilisation situation of the whole banking system when in Jan-April, the total savings of enterprises saw a fall of 5.6 percent from the end of 2011 while the total deposits from individuals posted a strong increase of 11.78 percent on year.
Regarding lending activities, Vietcombank said that in H1/2012, enterprises have faced many difficulties such as narrowed consumption market, high stockpiled products and high production costs and bank has shared and supported enterprises by offering many preferential credit packages.
Particularly, Vietcombank has disbursed over two trillion dong to support enterprises in paddy and rice stockpile for winter-spring crop and ensure stable goods supply for exports and supporting package worth nine trillion dong and $269.3 million for business and production and exports. At the same time, the bank also provided home loans worth two trillion dong at the interest rate of 12 percent per year to stimulate demand.
With these policies, Vietcombank’s credit till the end of June 2012 is estimated to have reached more than 215 trillion dong, growing 3.6 percent from the end of 2011.
Regarding serve segment, the bank’s export import payment activities in Jan-Jun are estimated to have reached $21.8 billion, of which, export turnover is estimated at $10.81 billion and import at $7.51 billion.
The lender also posted significant growth in card business operations. Accumulatively, the bank’s total local and international card payment turnover in Jan-Jun posted growth of 21.7 percent and 99 percent over the same period last year, respectively. The bank’s accumulated credit card using turnover in Jan-Jun increased 12.7 percent on year.
In the upward trend of bad debts in the entire banking system to more than 10 percent due to impacts of the economy, Vietcombank’s bad debts ratio is controlled at about 3%. “The bank’s low bad debts ratio was thanks to its cautious credit policy and credit quality has always been assessed and controlled strictly”, Vietcombank explained.
With these factors, especially in credit, Vietcombank’s profit has been more or less affected. As of the end of June 2012, the listed lender’s pre tax profit is estimated at 2.6 trillion dong, 15 percent lower than the same period last year.