Vietcombank estimates to gain 3tr dong profit in H1

In the first six months of this year, Vietnam Commercial Joint Stock Bank for Foreign Trade (Vietcombank-VCB) reported gaining some three trillion dong pretax profit, or 53% of the year’s target, Nguyen Hoa Binh, chairman of Vietcombank’s director board said.
However, many other lenders fulfilled only 20-30% of the year’s plans although the business targets were set at low level.

Strongly increasing financial costs due to prolonged high deposit interest rate together with low credit growth plus surging bad debt risk are major challenges for most banks.

Trinh Van Tuan, Orient Commercial Joint Stock Bank (OCB)’s general director, said that ending the first five months of this year, his bank attained only 115 billion dong profit, or 23% of the year’s target of 500 billion dong.

In the past five months, OCB’s total outstanding loans reached only 5% from the end of last year, causing the bank’s low profit. At the same time, OCB has to step by step restructure its loans to reduce non-production credit growth to below 22%.

Tran Phuong Binh, Eastern Asian Commercial Joint Stock Bank (EAB)’s general director also said that his bank’s pretax profit in H1 was about 675 billion dong, equaling to over 50% of the year’s plan.

Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank-STB)’s general director, Tran Xuan Huy, reported his bank’s pretax profit in Jun was 301 billion dong, bringing the total figure in Jan-Jun to 1.515 trillion dong, or 56% of the year’s target.

The income from gross profit contributed mainly to Sacombank’s profit with about 83%, of which the bank’s revenue from credit activities accounted for about 40%.

Huy also admitted that with total assets of up to 140 trillion dong, Sacombank’s pretax profit target at 2.7 trillion dong this year is not high.

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