2017 witnessed numerous Vietnam`s commercial banks with record-breaking profit.
Leading name is Vietcombank with pre-tax profit at VND11,018 billion, up by 32.9% compared to last year, beating all commercial banks’ profit records in the country. Notably, pre-tax pre-provision profit the bank recorded up to VND17.206 billion, increasing by 17.5% over the same period in 2016 and exceeded the plan.
Similarly, BIDV also breaks the record with consolidated pre-tax profit of VND8,800 billion, while Vietinbank announced the figure of VND9,200 billion.
Some other banks witness a surge in pre-tax profit of 40-169% such as the Military Bank (MB) with VND5,355 billion, up by 44.3% compared to last year.
On the other hand, Eximbank, TPBank or HDBank also surpassed their profitability targets.
Some analysts elaborate reasons lie behind this upward trend in Vietnam’s banking sector. Associate Professor Tran Hoang Ngan, Director of Ho Chi Minh City Academy of Officers, quoted by Tuoitre Online, said that, some banks used profit as provisions for non-performing loans, even lead to shareholders receiving no dividends. Now those provisioned profits are reimbursed, resulting in extraordinary high profit.
Advanced bad debt tackling also contribute to this optimistic statistic. Such as Vietcombank’s case, by the end of 2017, bad debt on the balance sheet decreased by VND705 billion.
In addition, the divestment trend also generate new profit wave in some cases. Vietcombank, as an stark example has raised over VND513.14 billion from divesting from Saigonbank, Cement Finance Company ...
Besides, banks also apply many measures to reduce costs. According to Vietcombank's representative, the bank withdrew promotions or preferential interest rates, seeking to increase the proportion of demand deposits, moving toward retail credit expansion, outstanding loans and low efficiency wholesale reduction....
With high profits, some banks will pay more dividends. HDBank plans to pay dividends in cash and bonus shares at a rate of 25-30%.
OCB managers said the dividend in 2017 would be around 15%, higher than last year. Another joint stock bank based in Hanoi is also expected to raise its dividend from 12% to 15%.
In terms of lending interest rates, under new government’s resolutions, some banks have started to reduce lending interest rates by 0.5-1% for enterprises of five priority sectors such as small and medium enterprises, startup businesses.
However, most banks said that despite the high profit in 2017, they still have to continue to deal with bad debts and restructure. Therefore, the reduction of lending rates will be mainly for priority beneficiaries.
Illustrative photo.
|
Some other banks witness a surge in pre-tax profit of 40-169% such as the Military Bank (MB) with VND5,355 billion, up by 44.3% compared to last year.
On the other hand, Eximbank, TPBank or HDBank also surpassed their profitability targets.
Some analysts elaborate reasons lie behind this upward trend in Vietnam’s banking sector. Associate Professor Tran Hoang Ngan, Director of Ho Chi Minh City Academy of Officers, quoted by Tuoitre Online, said that, some banks used profit as provisions for non-performing loans, even lead to shareholders receiving no dividends. Now those provisioned profits are reimbursed, resulting in extraordinary high profit.
Advanced bad debt tackling also contribute to this optimistic statistic. Such as Vietcombank’s case, by the end of 2017, bad debt on the balance sheet decreased by VND705 billion.
In addition, the divestment trend also generate new profit wave in some cases. Vietcombank, as an stark example has raised over VND513.14 billion from divesting from Saigonbank, Cement Finance Company ...
Besides, banks also apply many measures to reduce costs. According to Vietcombank's representative, the bank withdrew promotions or preferential interest rates, seeking to increase the proportion of demand deposits, moving toward retail credit expansion, outstanding loans and low efficiency wholesale reduction....
With high profits, some banks will pay more dividends. HDBank plans to pay dividends in cash and bonus shares at a rate of 25-30%.
OCB managers said the dividend in 2017 would be around 15%, higher than last year. Another joint stock bank based in Hanoi is also expected to raise its dividend from 12% to 15%.
In terms of lending interest rates, under new government’s resolutions, some banks have started to reduce lending interest rates by 0.5-1% for enterprises of five priority sectors such as small and medium enterprises, startup businesses.
However, most banks said that despite the high profit in 2017, they still have to continue to deal with bad debts and restructure. Therefore, the reduction of lending rates will be mainly for priority beneficiaries.
Other News
- Vietnam prioritizes agriculture and renewable energy for access to green loans
- Vietnam GDP expands by 7.09% in 2024
- Vietnam stock market set to accelerate in 2025: Experts
- Vietnam stock market aims for emerging status by 2025: Finance minister
- Vietnam set to extend VAT cut for six months
- Vietnam’s credit growth projected to expand by 16% in 2025
- Regional, international financial centers mean boosters to Vietnamese economy: Deputy PM
- IFC sets record with US$1.6 in climate financing to support Vietnam’s green transition
- Vietnam's credit growth up 10% in 10 months
- Building Hanoi's smart city with smart banking
Trending
-
Get it right! Reporting traffic violations is never a money maker
-
Vietnam news in brief - January 9
-
Vietnam confident of achieving 8% growth rate in 2025
-
Two Vietnamese cities in Asia's top five destinations for digital nomads
-
Prime Minister sets vision for Vietnamese football: Asian glory and World Cup dreams
-
Vietnam GDP expands by 7.09% in 2024
-
Hanoi celebrates New Year 2025 with art exhibitions
-
Hanoi Tourism: Paving the way for sustainable development
-
Vietnam releases Esports White Book 2022-2023