Local banks report higher profits in H1

Some banks have reported good business performance results in the first half of the year thanks to high credit growth.

Local banks report higher profits in H1, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news

A Vietinbank branch in Hanoi. Some banks have reported good business performance results in the first half of the year thanks to high credit growth. 

Vietinbank on Monday reported a profit of VND4.273 trillion (US$190.75 million) in the first six months, up 10.3 per cent against the same period last year.

Vietinbank General Director Le Duc Tho said the bank's total assets also increased nine per cent to reach VND850 trillion by the end of June.

"In the January-June period, the bank mobilised VND780 trillion, up 9.6 per cent, while its outstanding loans were worth VND729 trillion, up 7.7 per cent," Thọ said, adding that the bank's return on assets (ROA) and return on equity (ROE) by the end of June were 1.1 per cent and 11.5 per cent, against one per cent and 10.3 per cent, respectively, in the same period last year.

Last week, Vietcombank also announced that it earned nearly VND4.2 trillion in pre-tax profits in H1, up 38 per cent over the same period last year.

Vietcombank General Director Pham Quang Dung said that the H1 profits represented more than half of the target the bank had set for 2016.

As of June 30, deposits at Vietcombank reached VND535.2 trillion, up 6.7 per cent over the end of last year. Its outstanding loans totalled VND437.6 trillion, increasing 10.8 per cent over the end of 2015.

Dung said the bank maintained its leading position in the domestic market in terms of foreign currency and bank card services, while attaching special importance to international credit activities.

The bank saw progress in non-performing loan settlement and ensuring the capital adequacy ratio, Dung said.

Previously, BIDV had also announced its pre-tax profit of VND3.6 trillion in H1, up 20 per cent year-on-year. The surge was thanks to the high credit growth of 26 per cent against the same period last year.

With a credit growth of 18 per cent, TP Bank also reported a profit of VND205 billion after making provision for risky loans.

In a recent survey conducted by the State Bank of Viet Nam, commercial banks were also optimistic about prospects of their performance in the second half of this year. According to the survey, a total of 86.5 per cent of the respondents expected better results in 2016 than last year, of which 29 per cent anticipated ‘significant improvement'.

Value of banking assets touch $340b

The total assets of commercial banks by the end of May rose 4.26 per cent to touch VND7,630 trillion ($340.62 billion) against the end of last year.

According to the latest statistics provided by the State Bank of Viet Nam (SBV), the assets also increased by VND104 trillion, as compared with the previous month.

All commercial banks, except social policy banks, witnessed an increase in assets. Among them, State-owned commercial banks posted the largest increase of VND58.6 trillion, with their assets valued at VND3,400 trillion.

Joint-stock commercial banks came second, reporting an increase of VND32 trillion to reach VND3,000 trillion in assets by the end of May.

Only social policy banks saw a marginal decline of VND1.2 trillion in assets in the period.

The central banks also reported that the charter capital of the entire banking system rose by 2.93 per cent against the end of last year to touch nearly VND595 trillion.

The capital adequacy ratio (CAR) of the banking system reportedly reached 12.68 per cent by the end of May, down marginally from 12.76 per cent at the end of April, but significantly higher than the secure level of nine per cent stipulated by the central bank.

The ratio of short-term funds to medium and long-term loans at the end of May marginally rose to reach 31.42 per cent from 31.22 per cent in April.

Value of banking assets touch $340bn

The total assets of commercial banks rose 4.26 per cent to touch VND7,630 trillion (US$340.62 billion) by the end of May against the end of last year.

According to the latest statistics provided by the State Bank of Viet Nam (SBV), the assets also increased by VND104 trillion, as compared with the previous month.

All commercial banks, except social policy banks, witnessed an increase in assets. Among them, state-owned commercial banks posted the largest increase of VND58.6 trillion, with their assets valued at VND3,400 trillion.

Joint-stock commercial banks came second, reporting an increase of VND32 trillion to reach VND3,000 trillion in assets by the end of May.

Only social policy banks saw a marginal decline of VND1.2 trillion in assets in the period.

The central banks also reported that the charter capital of the entire banking system rose by 2.93 per cent against the end of last year to touch nearly VND595 trillion.

The capital adequacy ratio (CAR) of the banking system reportedly reached 12.68 per cent by the end of May, down marginally from 12.76 per cent at the end of April, but significantly higher than the secure level of nine per cent stipulated by the central bank.

The ratio of short-term funds to medium and long-term loans at the end of May marginally rose to reach 31.42 per cent from 31.22 per cent in April.

VNS

Local banks report higher profits in H1, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news
 
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