Nam A Bank the first bank aims to reduce profit by 14pct in 2020

02-Apr-2020 Intellasia | NDH | 6:02 AM Print This Post

According to the document submitted to the shareholders’ meeting in 2020, Nam A Commercial Joint Stock Bank (Nam A Bank) set a target of 800 billion dong of pre-tax profit, down 14 percent from the previous year, although other indicators still grew. This bank expects total assets to increase by 23 percent to 116 trillion dong, of which capital mobilisation from individuals, economic organisations and valuable papers will be 92 trillion dong, up 22 percent compared to 2019.

Outstanding loans to individuals and economic organisations are planned to reach 82 trillion dong, an increase of 21 percent compared to 2019 but the bank still ensures the credit growth rate in accordance with the regulations of the State Bank of Vietnam (SBV). Bad debt ratio does not exceed three percent.

The bank’s report stated that the global economy in 2020 was forecasted to cover the gloomy picture. The Asia-Pacific economy and Vietnam in particular would be heavily affected by the Corona pandemic, which would have a great impact on almost all industries and chain effects on the banking sector. Therefore, by 2020, Nam A Bank would determine to maintain appropriate growth in the market situation and focus on strengthening its operating platform.

Last year, the bank’s pre-tax profit of 925 billion dong, up 24%, exceeding 16 percent of the plan. Outstanding loans to individuals and economic organisations reached 67.546 trillion dong, up 33%, exceeding 13 percent of the year plan. Mobilising capital from individuals, economic organisations and issuing valuable papers were 75.156 trillion dong, up 32%.

Before Nam A Bank, Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) was the first bank to announce its business plan for 2020. The largest bank in Vietnam set a target of 12.5 trillion dong of pre-tax profit, an increase of 15 percent compared to the previous year, in the condition of Covid-19 epidemic soon to be under control. According to the plan of SBV, credit growth is expected to be nine percent, targeted capital mobilisation is nine percent. BIDV Chair Phan Duc Tu once said that at the bank meeting, the bank would try to meet the targets and make necessary adjustments depending on the actual situation.

BIDV is also one of the banks providing a large credit support package totalling 120 trillion dong and has officially launched 28 trillion dong. The rest will be balanced by the bank depending on the absorption of the market.

Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), Vietnam Bank for Agriculture and Rural Development (Agribank), HCM City Development Joint Stock Commercial Bank (HDBank) and many other banks also commit to support credit packages of 285 trillion dong, with preferential interest rates of 0.5-1 percent for customers. Besides, banks reduce and exempt fees to support businesses and individuals, which though will affect banks’ profits.

 


Category: Finance, Vietnam

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