Foreign Banks See 2016 Profits Jump, Post Low Bad Debt Ratios

Tuan Minh

14:48 12/04/2017

BizLIVE - Two major foreign lenders HSBC and ANZ have unveiled sharp increases in 2016 profit.

Foreign Banks See 2016 Profits Jump, Post Low Bad Debt Ratios

Few foreign banks disclose their financial statements.

Two leading wholly foreign-owned in Vietnam, HSBC and ANZ, have posted marked increases in their earnings in 2016 as foreign investment inflows remain strong.
HSBC Vietnam, the largest foreign-run lender in the Southeast Asian country, posted a pre-tax profit of 1.8 trillion dong ($79 million) last year, representing a rise of 46% year-on-year, according to the bank’s audited financial statement, seen by the Investment Bridge news wire.
Its provisions for credit losses dropped 70% to 61.5 billion dong ($2.7 million), attributing to the hefty profit.
The bank’s total assets amounted to 71.14 trillion dong ($3.12 billion). Its total outstanding loans grew 17.5% year-on-year to 32.51 trillion dong ($1.43 billion).
Notably, its bad debt accounted for 0.84% at the end of 2016, lower than 1.06% in 2015.
Similarly, ANZ Vietnam’s pre-tax profit soared 47% year-on-year to 567 billion dong ($24.87 million) as the bank cut its operating costs by 7.45%.
Its ROE stood at 10.53% and EPS was 1,500 dong.
The lender’s lending slid 13.5% year-on-year to 13.96 trillion dong ($612.3 million) and its deposits went down 8% to 32.6 trillion dong ($1.43 billion). As a result, its total assets dwindled 15% to 39.06 trillion dong ($1.58 billion).
Its bad debt ratio slipped to 1.09% as of end-2016 from 1.15% at the start of the year.
According to the State Bank of Vietnam’s website, eight foreign banks have been allowed to set up wholly-owned arms in Vietnam. They are HSBC Vietnam, ANZ Vietnam, Hong Leong Vietnam, Shinhan Vietnam, Standard Chartered Vietnam, Public Bank Vietnam, CIMB Vietnam and Woori Vietnam.
The banking regulator last month granted in-principle approval for Singapore’s United Overseas Bank (UOB) to establish a fully foreign-owned bank in Vietnam.

TUAN MINH