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Banks report huge profits in quarter one
The Saigon Times Daily
Thursday,  Apr 5, 2018,19:21 (GMT+7)

Banks report huge profits in quarter one

The Saigon Times Daily

HCMC – Many banks have generated profits of trillions of dong after the first quarter though the quarter is normally the period when credit growth is modest, Dau Tu Chung Khoan newspaper reported.

Luu Trung Thai, general director of Military Bank, said the bank’s pre-tax profit in quarter one was estimated at VND1.6 trillion, up 44% against the same period a year earlier. This year, the bank targets profit growth of 47%, or some VND6.8 trillion.

At HDBank, its monthly profit in the first three months was some VND350 billion on average, totaling VND1.05 trillion in the quarter. The bank plans to offer a dividend of up to 30% at the coming shareholders’ meeting.

Other banks like LienVietPostBank, OCB and VIB have also reported good earnings.

In particular, LienVietPostBank in the first quarter earned an estimated VND500 billion in profit, meeting 28% of the full-year target of VND1.8 trillion and growing by some 6.5% year-on-year.

At the recent annual shareholders’ meeting, OCB revealed its quarter-one profit of an estimated VND600 billion, 2.4 times higher than the amount earned in last year’s same period and equivalent to 30% of the yearly target. In addition, OCB targets to have total assets rising by 37% to VND115.7 trillion, capital mobilization up 36% to VND104.407 trillion, and total outstanding loans up 25% to VND60.679 trillion.

According to OCB general director Nguyen Dinh Tung, the bank plans VND500 billion in provisions this year and will likely be able to recover VND728 billion of bad debts.

VIB has also posted over VND500 billion in pre-tax profit in quarter one, three times higher than last year’s same period. The bank’s profit target for the entire year presented to shareholders was over VND2 trillion.

The credit growth room allowed for VIB this year is 14%, but the bank is planning to seek an upward revision to 25%. The bank is confident with the profit target of VND2.4-2.5 trillion for the whole year.

Data of the General Statistics Office showed total money supply rose 3.23% as of March 20, capital mobilization of commercial banks increased 2.2%, and credit expanded 2.23%.

This year, the central bank assigned low credit growth of 14-16% to major banks, even lower than small banks, to control the system’s overall growth and ensure the system security. However, depending on actual market conditions, banks will propose higher rates.

According to banks, credit performance has been good in the past months, which is not common in the same period of previous years. This is attributed to factors like economic changes that support banking activities and improving handling of bad debts.

Can Van Luc, a financial expert, said that banks’ profits will be high this year though credit growth will likely be lower than last year. Profit growth will be in the 20-25% range.

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