Eximbank: New milestone in 2019

21-Sep-2019 Intellasia | Nhip song Kinh te | 6:02 AM Print This Post

In the first six months, Vietnam Export Import Commercial Joint Stock Bank (Eximbank)’s business results grew steadily and positively, in which profit before tax reached nearly 763 billion dong, capital mobilisation reached 129.258 trillion dongup 8.9 percent compared to the beginning of the year.

Specifically, according to Nguyen Ho Hoang Vudeputy general director of Eximbank, Eximbank had always followed the implementation of the targets set out in 2019, the assigned targets had reached the progress compared to the overall plan. Total assets of the first six months were 159.591 trillion dongincreasing by 4.5 percent compared to the beginning of the year, raising capital to 129.258 trillion dongincreasing by 8.9 percent compared to the beginning of the year, the main business indicators still closely followed. The net interest income in the first half of 2019 rose by 10.6 percent compared to the same period last year. In terms of operational safety ratios, Eximbank still complied with the regulations of the State Bank of Vietnam (SBV). This result reflected partly the efforts of Eximbank’s Board of directors in recent years in consolidating the leadership to stabilise banking operations and develop the banking system.

Compared to the same period in 2018, if excluding the effect of irregular income from the sale of all shares invested in another credit institution, profit before tax for the first six months of 2019 increased highly with the absolute increase was 362 billion dong compared to the same period in 2018 (90 percent increase rate). In addition to the target of net interest income, other incomes such as income from service activities, foreign exchange trading activities, and securities trading all increased compared to the same period last year.

Especially, net profit from foreign exchange business, which is Eximbank’s strength, in the first six months of 2019 reached 154.8 billion dong, up 23.64 percent over the same period last year. Although the credit did not grow significantly (outstanding loans increased by three percent compared to the same period last year), there were many efforts to improve the NIM index by restructuring the loan portfolio with a focus on developing products for consumer demand and small and medium enterprises. The performance in 2019 compared to 2018 has a change in income structure. The bank continues to maintain and improve the credit quality, which is reflected in the control of the ratio of bad debts to total outstanding loans at a low level. Specifically as of June 30, 2019, this ratio was 1.77 percent (at the end of 2018 was 1.84 percent).

The service activities have a good growth in the number of transactions and especially the bank has strongly deployed products in combos with preferential fees to increase utilities and the number of products for each customer when making transactions at Eximbank such as: Foreign currency swap combo, Combo 5 in 1 business account, Combo of overseas study savings, etc. At the same time, the revenue of the Bancassurance segment increased impressively by 162 percent over the same period of 2018, which shows encouraging improvement.

Recently, Eximbank, despite being affected by both objective and subjective reasons, the Board of directors and the Board of Management have a common development orientation to achieve the goal of stable growth. According to Nguyen Canh VinhActing general director of Eximbank, the bank now has a good business network with the brand that has been affirmed over the past 30 years, especially with a close customer network, experienced, loyal, highly committed staff and determined Board of directors, Eximbank’s conversion strategy will be successful and bring the bank back into orbit as one of the largest joint stock commercial banks in Vietnam.

Specifically, Eximbank is transforming strongly with a series of major initiatives to restructure the distribution channel network and centralise operations to improve the operational efficiency and labour productivity. All initiatives are being implemented synchronously throughout 2019. In addition, the bank’s conversion strategy is agreed and supported by shareholdersmany experts from SMBC’s strategic partner and high level individuals of the bank directly involved in project implementation.

Eximbank is one of the first joint stock commercial banks in Vietnam, officially put into operation on January 17, 1990. After more than 30 years of operation, Eximbank is considered as one of the financial institutions with a strong growth speed in providing prestigious and quality products and services based on current information technology platform. Great service to the community. In line with the sustainable development strategy of innovation as the core, Eximbank continues to improve its competitiveness and innovation, which is a long-term investment to create more benefits for businesses and customers, realising expectations for the future. Recently, Eximbank has been honoured to receive the award of “Excellent international payment quality of Wells Fargo” and Vietnam Digital Transformation Award 2019 organised by Vietnam Digital Communications Association (VDCA).

 


Category: Finance, Vietnam

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