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Thursday,  Jan 18,2018,16:44 (GMT+7)

Banks report huge profits in 2017

The Saigon Times Daily
Thursday,  Jan 4,2018,23:22 (GMT+7)
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Banks report huge profits in 2017

The Saigon Times Daily

Customers transact with staff of Vietcombank in HCMC. Banks in Vietnam posted handsome profits last year - PHOTO: UYEN VIEN

HCMC - Banks in Vietnam posted handsome profits last year, helped by strong credit growth and initial gains in the settlement of bad debt. 

Sacombank, HDBank, OCB, TPBank, LienVietPostBank and VIB met their profit targets early, according to news website Dau Tu Chung Khoan.

LienVietPostBank’s pre-tax profit in January-November 2017 reached more than VND1.7 trillion (US$74.9 million), 10% higher than the full-year plan. As of end-November, the bank’s chartered capital and total assets rose to VND6.46 trillion and VND154 trillion respectively. It expects a dividend increase from 12% to 15% this year.

In January-September, HDBank’s profit surged 279%, with consolidated pre-tax profit hitting more than VND1.9 trillion. Its total consolidated profit in all of 2017 was estimated at VND2.4 trillion.

Nguyen Dinh Tung, general director of OCB, said the bank reported VND960 billion in January-November pre-tax profit, double end-2016. Its total profit last year was estimated at more than VND1 trillion, way above the target of VND780 billion.

Sacombank met its profit target earlier than expected. In January-September, its pre-tax profit amounted to more than VND1 trillion, double its target and five times higher than in the same period of 2016.

Similarly, larger banks like VietinBank, Vietcombank, Techcombank and ACB said they obtained higher-than-expected profits last year. 

Vietcombank reported nearly VND8 trillion in pre-tax profit in January-September, up 25% year-on-year and meeting 81% of the full-year estimate.

Profit growth of banks was helped by strong credit growth, the better-than-hoped settlement of bad debt, effective risk management and the growing real estate market.

Dr. Bui Quang Tin from the Banking University of HCMC said credit grew 19% last year while liquidity remained stable and the interbank offered rate was kept low. Non-performing loans were curbed at below 3% in the banking system.

The National Assembly’s Resolution No.42 has helped banks effectively deal with bad debts.

Banks said the high growth momentum will continue into this year with credit growth expected at 20-21%, a little bit higher than last year.

Data of the National Financial Supervisory Commission shows profits of banks in the country in January-September 2017 increased nearly 40% year-on-year.

However, experts said, not all banks will be able to maintain the growth momentum this year. It will depend on credit quality and bad debt settlement.

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