Banks report hefty profits in 2018

19-Jan-2019 Intellasia | The Saigon Times | 6:00 AM Print This Post

Many Vietnamese banks have reported significant profits of trillions of dong for last year, though local banks’ credit growth has been harnessed at a record low for the past four years, local newspaper Nguoi Lao Dong Online reported.

Vietnam International Bank (VIB) recently released its financial report for 2018, posting consolidated pre-tax profit of VND2.7 trillion, which exceeds its target and almost doubles the figure of the previous year. VIB recorded a profit hike of nearly 100 percent for the second consecutive year.

According to a VIB representative, the bank’s net interest margin and net revenues from other services picked up by 40 percent and 92 percent, respectively, resulting in the surging profit.

The bank reaped these positive results as it had boosted the provisions of banking services and diversified incomes. The representative added that sales in its retail banking sector also greatly contributed to VIB’s growth, with revenue rising 90 percent against 2017.

Meanwhile, Le Thanh Trung, vice general director of HCM City Development Joint Stock Commercial Bank (HDBank), noted that the pre-tax profit of HDBank for last year amounted to VND3.9 trillion, up 64 percent year-on-year. Its revenues from other banking services totalled VND1.8 trillion, rising over 50 percent versus 2017, while the bad debt ratio was brought under control.

Many other local State-owned commercial banks also announced hefty profits in 2018.

Bank for Investment and Development of Vietnam, which is currently the country’s largest lender by assets of over VND1,200 trillion, posted over VND9.6 trillion in consolidated pre-tax profit, hitting a target set at its annual general meeting and ensuring dividend payments for shareholders as pledged.

Bank for Foreign Trade of Vietnam (Vietcombank) recorded the highest profit amount during the given period in the country. Addressing a meeting to introduce business tasks for the year, Pham Manh Thang, deputy general director of Vietcombank, claimed that its parent bank generated more than VND18 trillion in profit, resulting in consolidated profit amounting to VND18.3 trillion, up over 60 percent year-on-year.

Thang attributed the high profit of Vietcombank to the stability of its credit performance, revision of its portfolio of major customers and introduction of additional solutions to increase retail credit. Vietcombank was listed among local banks that maintained low bad debt ratios and well-controlled credit growth.

Regarding small joint-stock banks, Kien Long Commercial Joint Stock Bank posted over VND300 billion in pre-tax profit, up 18 percent versus that of 2017. Its bad debt ratio was kept at 0.86 percent, and it revised upward its charter capital to VND3.2 trillion from VND3 trillion to improve its financial capacity.

https://english.thesaigontimes.vn/65650/banks-report-hefty-profits-in-2018.html

 


Category: Finance, Vietnam

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