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Vietnam’s exchange-listed firms earn US$13 billion in profits in 2019

Banking and real estate continue to be the top two sectors in the stock market in terms of profit and growth rate.

Statistics from SSI Research as of February 13 revealed 962 publicly-traded firms, accounting for 95% of the market capitalization in Vietnam’s stock market, earned a combined VND303.06 trillion (US$13.04 billion) in after-tax profit in 2019, up 12.6% year-on-year, VnExpress reported.

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Such growth spread evenly in all four quarters, but reached its peak in the second quarter.

Banking and real estate continued to be the top two sectors in terms of profit and growth rate.

Specifically, 18 banks listed on the stock market made VND110.66 trillion (US$4.76 billion) in profit, accounting for one third of total profits of all publicly-traded firms. As of the end of 2019, those banks reported VND7,590 trillion (US$326.69 billion) in total assets and VND554 trillion (US$23.84 billion) in equity, up 13.2% and 23.6% year-on-year, respectively.

According to SSI Research, banks’ hefty profits were thanks to net interest income (NII) which stood at VND231.6 trillion (US$9.96 billion), up 22% year-on-year.

Meanwhile, operational costs and settlement of provision of 18 banks expanded at 14.9% and 18.7% year-on-year, respectively, lower than growth rate of operational income at 20.8%.

For property developers, both their revenues and profits increased at a double-digit pace, 11.3% and 32%, respectively, in 2019 to VND307 trillion (US$13.21 billion) and VND56.4 trillion (US$2.42 billion).

In addition to these two fields, telecommunications, car and parts trading were also included in the group with highest growth in profit in the stock market. In contrast, sectors recording negative growth rate in profit in 2019 were communications (down 77.2%), chemicals (down 37.8%) and basic resources (down 26.9%).