Vietinbank denies bad debts at vnd3-4 trillion

Vietinbank had the lowest NPL ratio of the whole system, said Pham Huy Hung, Chairman of Vietinbank, clarifying the rumor that the bank had VND3-4 trillion in bad debts.

Hung refuted the false information that Vietinbank piled up VND3-4 trillion in bad debts, saying that the bank will take legal actions against rumor-spreaders.

Vietinbank will maintain the dividend rate at 22%, Hung affirmed, adding that he will buy more if the bank’s share price continues to go down.

Vietinbank’s NPL rate stayed at 1.2% compared to 3.04% of the banking sector, far lower than its “Big 4” peers: Agribank (5.68%), BIDV (2.59%) and Vietcombank (3.47%), the State Bank data showed.

The bank will increase its charter capital to VND25 trillion and shareholders’ equity to VND30 trillion by end 2011. It currently achieved capital growth rate of 18.5%, asset growth rate of 14.5% and 8-month profits of VND5 trillion.

About Vietinbank

Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) is the second largest bank after Agribank in terms of total assets. Vietinbank’s total assets amounted to VND425 trillion and are expected to reach VND450 trillion (USD 22 billion) by end-2011. Vietinbank has a network of 150 branches and 941 transaction offices all over the country. It is the first Vietnamese bank to establish a branch in Frankfurt (Germany) with full bank services, and three representative offices in big international financial centers. It aims to raise its total assets up to USD27.5 billion at end-2012 and double its scale to USD 50 billion by the next 5 years. Bad debts at the bank accounted for VND967 billion ($50.89 million) of total outstanding loans in 2010.

CTG is among a few stocks which maintain high and stable growth since the beginning of 2011. CTG price has climbed 45% while VN-Index hovered around a range of +/- 10%. CTG’s share price reached its peak of VND 31,700 in March, 2011.

Source StoxPLus

Tags: Vietinbank, Vietnam banking industry, Vietnam finance, Vietnam financial