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Banks report hefty profits in 2018
The Saigon Times Daily
Thursday,  Jan 17, 2019,18:04 (GMT+7)

Banks report hefty profits in 2018

The Saigon Times Daily

An unidentified person checks Vietnamese banknotes at a bank – PHOTO: THANH HOA

HCMC – Many Vietnamese banks have reported significant profits of trillions of Vietnam dong for last year, though local banks’ credit growth has been harnessed at a record low for the past four years, local newspaper Nguoi Lao Dong Online reported.

Vietnam International Bank (VIB) recently released its financial report for 2018, posting consolidated pretax profit of VND2.7 trillion, which exceeds its target and almost doubles the figure of the previous year. VIB recorded a profit hike of nearly 100% for the second consecutive year.

According to a VIB representative, the bank’s net interest margin and net revenues from other services picked up by 40% and 92%, respectively, resulting in the surging profit.

The bank reaped these positive results as it had boosted the provisions of banking services and diversified incomes. The representative added that sales in its retail banking sector also greatly contributed to VIB’s growth, with revenue rising 90% against 2017.

Meanwhile, Le Thanh Trung, vice general director of HCMC Development Joint Stock Commercial Bank (HDBank), noted that the pretax profit of HDBank for last year amounted to VND3.9 trillion, up 64% year-on-year. Its revenues from other banking services totaled VND1.8 trillion, rising over 50% versus 2017, while the bad debt ratio was brought under control.

Many other local State-owned commercial banks also announced hefty profits in 2018.

Bank for Investment and Development of Vietnam, which is currently the country’s largest lender by assets of over VND1,200 trillion, posted over VND9.6 trillion in consolidated pretax profit, hitting a target set at its annual general meeting and ensuring dividend payments for shareholders as pledged.

Bank for Foreign Trade of Vietnam (Vietcombank) recorded the highest profit amount during the given period in the country. Addressing a meeting to introduce business tasks for the year, Pham Manh Thang, deputy general director of Vietcombank, claimed that its parent bank generated more than VND18 trillion in profit, resulting in consolidated profit amounting to VND18.3 trillion, up over 60% year-on-year.

Thang attributed the high profit of Vietcombank to the stability of its credit performance, revision of its portfolio of major customers and introduction of additional solutions to increase retail credit. Vietcombank was listed among local banks that maintained low bad debt ratios and well-controlled credit growth.

Regarding small joint-stock banks, Kien Long Commercial Joint Stock Bank posted over VND300 billion in pretax profit, up 18% versus that of 2017. Its bad debt ratio was kept at 0.86%, and it revised upward its charter capital to VND3.2 trillion from VND3 trillion to improve its financial capacity.

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