Banks report higher profit

Saturday, Oct 19, 2019 08:11

Sacombank gets the profit before tax of VNĐ2.49 trillion ($107.2 million), an increase of 89.5 per cent compared to the same period of 2018.— Photo

Banks are reporting better profit for the third quarter this year, with Vietcombank leading the way despite the predicted slowdown in credit growth.

In the first nine months, Vietcombank announced profit before tax of VND17.2 trillion (US$741.1 million), up 51.9 per cent compared to the same period of 2018, 85.4 per cent of the year's plan.

With consolidated profit before tax of VND17.59 trillion ($757.9 million), up 50.6 per cent over the same period, Vietcombank is expected to get higher profit than its goal of VND20 trillion ($861.8 million).

As another state-owned bank, Agribank announced its first eight months' profit before tax of VND8.82 trillion ($380 million), fulfilling 80.2 per cent of the year's plan, setting the bank up for the possibility of exceeding its profit goal.

Among private banks, Sacombank reported profit before tax of VND2.49 trillion ($107.2 million), up 89.5 per cent compared to the same period of 2018, reaching 94 per cent of its year’s plan.

By September 30 this year, Sacombank’s total assets hit VND450.2 trillion ($19.39 billion), up 10.9 per cent from the beginning of this year. Sacombank's sources of income continued to grow steadily, of which service revenue grew 21.1 per cent, currency exchange revenue grew 35 per cent and revenue from other activities 176.2 per cent.

Sacombank’s bad debt ratio fell from 2.11 per cent to 1.96 per cent. Currently, Sacombank must spend on its restructuring project approved by the State Bank, thus its shareholders expect to receive no dividends in this period, despite large profits.

Tien Phong Bank (TPBank) reported profit before tax of VND 2.4 trillion ($103.4 million) in the first nine months, up 50 per cent from its same term last year, reaching more than 75 per cent of the year’s plan. The bank's mobilisation also exceeded VND 138 trillion ($5.94 billion) up 22 per cent from last same term.

In the same period, MBB reported VND 7.08 trillion ($305.1 million), an increase of 28.5 per cent. By September 30 this year, Military Commercial Joint Stock Bank MBB's total assets reached VND385.5 trillion ($16.6 billion), up 9.37 per cent from the beginning of this year.

Though not yet officially announced, VPBank and Techcombank expect high profits in the first three quarters too.

A recent survey from the State bank of Viet Nam showed that as of September 26, credit growth was recorded at 8.64 per cent and capital mobilisation rose by 9.03 per cent against figures seen in early 2019.

The report also found the demand for loans would continue to rise, higher than the demand for payments, cards and deposit accounts.

Some 68-73 per cent of credit institutions expect the demand for banking services to surge for the rest of the year.

Notably, the survey showed the resolution of non-performing loans (NPL) at banks had shown positive signs, with 27.6 per cent of banks reporting their NPL ratio declined in Q3 and 28.9 per cent expected a drop in Q4. The rates are higher than 27.4 per cent and 26.9 per cent in the previous survey conducted in June.

The survey also indicated many banks saw a reduction in credit risk in the third quarter. — VNS

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