September 16, 2019 07:49

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Banks report higher profits in H1

15:50 | 19/07/2016

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

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Banks report higher profits in H1.

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

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

“In the January-June period, the bank mobilised VND780 trillion, up 9.6%, while its outstanding loans were worth VND729 trillion, up 7.7%,” Tho said, adding that the bank’s return on assets (ROA) and return on equity (ROE) by the end of June were 1.1% and 11.5%, against 1% and 10.3%, respectively, in the same period last year.

Vietcombank also announced that it earned nearly VND4.2 trillion in pre-tax profits in H1, up 38% 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% over the end of last year. Its outstanding loans totalled VND437.6 trillion, increasing 10.8% 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% year-on-year. The surge was thanks to the high credit growth of 26% against the same period last year.

With a credit growth of 18%, 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 Vietnam, 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% of the respondents expected better results in 2016 than last year, of which 29% anticipated ‘significant improvement’.

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

According to the latest statistics provided by the State Bank of Vietnam (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% against the end of last year to touch nearly VND595 trillion.

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

fruit and vegetable imports up 40 in first half Better performance forecast for banks in H2

Business performance at commercial banks is forecast to continue its upwards trend this quarter after making some ...

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

Source: VOV