Vietnam large banks gain high profits as smaller ones estimate lower earnings in 2011

Bankers expect that the Vietnamese banking industry has seen clear differentiation in bank profits of 2011 as larger banks still gained big profits, while smaller lenders estimated lower earnings.
A source from Vietcombank said that its 2011 combined profit reached 5.7 trillion dong, up 4% on year. In addition, important indicators of the bank also grew, such as Return on Equity (ROE) at 17.5% and Return on Asset (ROA) at 1.3%.

According to Nguyen Thu Ha—Deputy General Director of Vietcombank, total deposits of her bank continued growing over 17% against 2010 to around 242.3 trillion dong, in which the deposits raised from residents jumped 23% to 122 trillion dong.

Vietcombank’s total outstanding loan was estimated at almost 210 trillion dong with a controllable growth of 18.5%, bad debt ratio at 2.1%. By the end of 2011, total assets of Vietcombank achieved 369.2 trillion dong, +20.3% and its equity was posted at 29.2 trillion dong, increasing by 8.5 trillion dong on year.

Another big joint stock bank namely Vietinbank also announced it gained pretax profit of 8.105 trillion dong in 2011, +76% on year, ROE at 25.4% and ROA at 1.96%. The Chairman Pham Huy Hung reported, the bank’s total assets obtained 460.421 trillion dong, +25.4% compared with 2011 early, total deposits at 422.955 trillion dong, total outstanding loans of 430.360 trillion dong, and NPL ratio of 0.74%.

While talking to the press, General Director of Eximbank, Mr Truong Van Phuoc reported that the lender reached total assets of 183 trillion dong, equity 13.5 trillion dong, and estimated pretax profit of 4.065 trillion dong in 2011, up 71% over the year earlier.

Meanwhile, Saigon Thuong Tin Commercial JS Bank (Sacombank) estimated to have earned total pretax profit of 2.728 trillion dong, equity of 15.1 trillion dong, total assets of 144 trillion dong, and NPL ratio of 0.6% by the end of 2011.

Small and medium sized banks mostly have not announced 2011 business results. A representative of Vietnam Prosperity Commercial JS Bank or VPBank told Saigon Economic Times that ending 2011, combined pretax profit of the bank was estimated at 1.060 trillion dong, total assets 80.665 trillion dong while its capital mobilization (total deposits) soared 41%, outstanding loans +19.8% and bad debt ratio at 1.76%.

Similarly, OceanBank has reported gaining pretax profit of 640 billion dong in 2011, fulfilling only 80% of the year plan, total loans at 19.2 trillion dong, +10% against the end of 2010, and total assets of over 62 trillion dong, +12%, and non-performing loan (NPL) ratio of 2%, according to the Chairman Ha Van Tham. – Vietbiz24

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Jan 12 2012. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry