Big banks record profits despite general slump

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Báo Tuổi Trẻ English - 74 month(s) ago 7 readings

Big banks record profits despite general slump

Major lenders such as Vietcombank, VietinBank, Sacombank and Eximbank reaped impressive profits last year despite the economic downturn.

banks Vietnam has been struggling to tame the region's fastest rising consumer prices. Photo: Tuoi Tre

Vietcombank said its consolidated profits in 2011 reached VND5.7 trillion, up 4 percent year-on-year. The bank also achieved positive growth rates with other important operation indicators, including returns on equity (ROE) amounting to nearly 17.5 percent and return on assets (ROA) reaching some 1.3 percent.

Nguyen Thu Ha, deputy general director of Vietcombank, said despite economic hardship, the bank’s mobilization growth rate remained high at over 17 percent compared to 2010, at roughly VND242.3 trillion.

This figure consists of deposits from the public of approximately VND122 trillion, a sharp rise of more than 23 percent compared to a year earlier.

Total outstanding loans at Vietcombank climbed to VND210 trillion but the annual credit growth rate was still under control at 18.5 percent, and bad debts at 2.1 percent.

As of the end of 2011, Vietcombank’s total assets were over VND369.2 trillion, a yearly increase of 20.3 percent, while its equity capital stood at around VND29.2 trillion, surging more than VND8.5 trillion from a year earlier.

Vietnam Bank for Industry and Trade, or VietinBank, stood out for business excellence, earning pre-tax profits of up to VND8.105 trillion, up 76 percent year-on-year, with ROE at 25.4 percent and ROA, at 1.96 percent respectively.

Similarly, the Vietnam Export Import Commercial Joint-Stock Bank, or Eximbank, had a successful year in 2011.

Truong Van Phuoc, general director of the bank, said the bank obtained VND4.065 trillion in pre-tax profits, a year-on-year surge of 71 percent. The lender’s total assets as of late last year were VND183 trillion and its equity capital was VND13.5 trillion.

Saigon Thuong Tin Commercial Bank (Sacombank) is estimated to enjoy nearly VND2.73 trillion in pre-tax profits for the whole year of 2011, with equity capital worth VND15.1 trillion, total assets VND144 trillion and bad debts at 0.6 percent.

Meanwhile, most medium and small-sized lenders have yet to release their business results last year and some lenders have reported modest results compared to the large banks’ performance.

A representative from Vietnam Prosperity Bank (VP Bank) said that his bank’s pre-tax profits were about VND1.06 trillion for the whole year of 2011. Besides, Ocean Commercial Bank (OceanBank) got VND640 billion in consolidated pre-tax profits last year.

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