Local banks perform well in first half of the year

Commercial banks have performed well in the first half of 2017 (H1), and business results show that many have already met more than half their annual profit targets.

local banks perform well in first half of the year hinh 0

Vietcombank and Vietinbank were the first two State-owned banks to announce preliminary business results in H1.

Vietcombank announced that its pre-tax profit in H1 had crossed VND5 trillion (US$220 million), up 20% year on year, and 53.2% of its 2017 target.

Its General Director Pham Quang Dung said the result was supported by healthy growth in all sectors, following a three-year restructure.

Between January and June, the bank set aside VND3 trillion for risky loans, bringing its provision fund to VND10.7 trillion, equal to 136% of its total non-performing loans.

The bank’s capital mobilisation increased by 10.4% to VND660 trillion, while its credit growth rose to around VND534 trillion, or 13.1%, achieving 95.7% of its target for 2017, which is 15% credit growth.

Vietinbank also released its H1 business results, posting a pre-tax profit of VND4.66 trillion, up 12% year on year and fulfilling 54% of this year’s target.

The bank mobilised capital worth VND947 trillion, marking a 9.7% increase from early 2017, while its outstanding loans rose 9.6% to VND767.8 trillion.

Le Duc Tho, General Director of the bank, said Vietinbank’s total assets reached VND1,030 trillion at the end of June, up 9% from December 31, 2016.

In the near future, Tho said, Vietinbank would channel credit into the manufacturing value chain, hi-tech and clean agriculture, start-ups, and small- and medium-sized enterprises.

Joint stock commercial banks also posted optimistic results in H1.

Sacombank announced that its pre-tax profit surged by 70% year on year to VND428 billion, equal to 73% of its entire year’s target. Sacombank’s revenue from services touched VND727 billion, up 27% year on year and accounted for 23% of the bank’s total revenue.

Notably, Sacombank settled VND845 billion of its non-performing loans. Its credit growth and capital mobilisation also rose by 10.1% and 9.7%, respectively.

The OCB, with a pre-tax profit of VND494 billion in H1, met 63% of its 2017 target. Its outstanding loans rose 25% year on year to VND44.96 trillion, while its mobilised capital was VND51.3 trillion, up 11%.

The same trend was also seen in TPBank and LienVietPostBank, which posted pre-tax profits of VND483 billion and VND900 billion, equal to 62% and 60% of their 2017 targets, respectively.

As per a recent survey on business trends of credit institutions, conducted by the State Bank of Vietnam’s Statistics Department, 64% of the credit institutions affirmed that business conditions in Q2 of 2017 noticeably improved compared to Q1.

Eighty-two percent of the credit institutions surveyed are optimistic that business conditions in 2017 will continue to improve and strengthen, as compared to 2016, the survey revealed. 

And 90.6% of them believe their pre-tax profit will see positive growth this year. The net income from both services and self-business is also expected to improve remarkably.

VNA

Related news