Local banks perform well in first half of the year

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.