VietinBank, one of the largest commercial banks in Viet Nam, saw profit soaring by 74 per cent in the first half of this year and completed 77 per cent of the bank's full-year profit plan.

It recorded VND13 trillion (US$565 million) in pre-tax profit in the first half of this year. This was also the highest 6-month pre-tax profit VietinBank has recorded in its history.

The information was released at a recent conference to review VietinBank's business activities in the first six months of 2021.

The bank’s credit balance as of the end of June was estimated at VND1.06 quadrillion, up 4.8 per cent compared to the end of 2020.

Also in the first half of the year, the bank's business performance improved significantly, cost efficiency continued to be improved, and VietinBank's asset quality was well managed with bad debt ratio out of total credit outstanding at 1.38 per cent, much lower than the industry average.

The bank also stepped up risk provision during the period and raised the bad debt coverage ratio to 109 per cent.

The bank's first quarter pre-tax profit reached VND8.06 trillion. Thus, the bank's profit in the second quarter was estimated at nearly VND5 trillion, up 10 per cent year-on-year.

Since the outbreak of COVID-19, the bank has spent more than VND160 billion to support the prevention and containment of the pandemic.

VietinBank is currently completing procedures to increase its charter capital from VND37.2 trillion to VND48 trillion, under the dividend payout plan.

The bank has been approved by the Prime Minister to invest in additional State capital of nearly VND7 trillion.

After raising capital to over VND48 trillion, VietinBank will pay 2020 dividends in cash at the rate of 5 per cent and in shares at the rate of 12.6 per cent.

With this option, the bank plans to spend VND2.4 trillion to pay cash dividends and more than VND6 trillion to pay share dividends.

After the payout, the bank's charter capital will increase to more than VND54 trillion and become the bank with the highest charter capital in the system by the end of 2021. — VNS