Top 10 profitable businesses in banking finance securities sector released

09-Nov-2019 Intellasia | Tri Thuc Tre | 6:02 AM Print This Post

On November 6th 2019 in Hanoi, Vietnam Report (VNR) announced the Profit500 Ranking and honoured the Top 10 best profitable businesses in Vietnam, Top 15 best profitable private businesses in Vietnam, and Top 10 profitable businesses in banking finance securities sector.

Accordingly, the most profitable businesses in 2019 are big corporations and businesses such as Vietnam National Petroleum Group (Petrolimex), Samsung Electronics Vietnam (Samsung), Viettel Group, Vingroup, Vietnam Diary Vinamilk, Vietjet, etc. The top 10 banks with leading profits include Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Technological and Commercial Joint Stock Bank (Techcombank), Vietnam Prosperity Commercial Joint Stock Bank (VPBank), Military Commercial Joint Stock Bank (MBBank), HCM City Development Commercial Joint Stock Ban (HDBank), Asia Commercial Joint Stock Bank (ACB), Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV), etc.

According to Vietnam Report, the list and ranking of businesses are assessed objectively and independently based on the calculation of weighted scores, with main criteria being indicators of profitability (Return on Assets (ROA), Return on Equity (ROE), and Return on Risk (ROR)); pre-tax profit; and business revenue.

Businesses in the Profit500 Ranking are evaluated as businesses with good profitability, which are the pillars for the development of Vietnam’s economy, at the same time contribute to introduce Vietnamese brands to domestic and international business community.

In the Top 10 profitable businesses in banking, finance and securities sector in 2019, banks continue to draw attention when the trillion-dong profit club rankings are constantly being changed and names such as Techcombank, MB, VPBank, BIDV, ACB or the rising star HDBank are continuously upgraded.

Specifically, Vietcombank still holds the first position in profit as it recorded 17.592 trillion dong of consolidated pre-tax profit in the first nine months of 2019, up by 50.6 percent compared to the same period of last year, completing 85.8 percent of the 2019 plan. In the same period, the parent bank alone contributed 17.250 trillion dong, up by 51.9 percent over the same period of 2018, completing 85.4 percent of the 2019 plan. The ratios such as Return on Average Assets (ROAA) and Return on Average Equity (ROAE) of the bank were respectively 1.65 percent and 25.75%, significantly higher than 2018, and higher than the sector’s average level.

Holding the second and third positions are Techcombank and Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank). Techcombank attained a pre-tax profit of 8.860 trillion dong after the first nine months of 2019, up by 14 percent compared to the same period of last year. In the third quarter alone, the bank’s pre-tax profit was 3.198 trillion dong, up by 24 percent over the same period of 2018.

Meanwhile, VietinBank posted a pre-tax profit of 8.456 trillion dong, up by 11.3 percent compared to the same period of last year.

In the third quarter of the year, MBBank achieved a pre-tax profit of 7.616 trillion dong, up by 26.6 percent over the same period of 2018. In the same period, VPBank completed 76 percent of the year plan with 7.199 trillion dong of pre-tax profit; while BIDV also achieved more than seven trillion dong.

In the first three quarters of the year, HDBank attained a profit of 3.448 trillion dong. Although this number is modest compared to the top 3 banks, the pre-tax profit of HDBank was 1.238 trillion dong, up by 51 percent over the same period of 2018. The bank’s ROA and ROE were 1.7 percent and 20.2%, respectively. The asset quality of MBBank was affirmed with only 1.1 percent separate bad debt ratio, among the lowest ratios of the sector.

In addition to the business rankings, Vietnam Report also provided assessments on indicators, business environment, as well as potential growth sectors, in which banking sector ranked the fifth in the group of sectors with strong growth potential in the period of 2020-2025.

 


Category: Finance, Vietnam

Print This Post