Vietnam Commercial Banks Report High Profits in First Half 2018

Diep Nguyen

11:15 03/07/2018

BizLIVE -

Many commercial lenders have posted high profits in the first half 2018 with profits higher than expectation and be likely to exceed their annual plan, VnEconomy reported.

Vietnam Commercial Banks Report High Profits in First Half 2018
Vietcombank was the latest to release the high pretax profit of VND7,722 billion (US$336.2 million), an increase of 52% year-on-year and account for 55.2% 2018 plan.
The important profit figures have been greatly improved; NIM reached 2.76%; ROAA reached 1.24%; ROAE 22,71%; all of those are higher than average market rates and can be said the big leap from 2017.
The Vietcombank profit was driven by improvements in many fields such as capital mobilization; high credit growth; good credit quality and efficient banking services, etc. Vietcombank has high potential to lead the Vietnamese banking system in terms of absolute profits.
Another big bank, Vietinbank has also posted the high profit. During the first half of 2018, Vietinbank has focused on better bad debt provision and bad debt settlement.
In the first 6 months of 2018, all of Vietinbank targets have been fulfilled and Vietinbank is on the way to complete all year plan. Most outstandingly, Vietinbank has reached the higher profits than the general growth rates of the banking industry, said Board Member of Vietinbank, Mr Le Duc Tho.
In the first 6 months of this year, Vietinbank has fulfilled the decisive target of complete buying bank of bad debt sold to The Viet Nam Asset Management Company (VAMC).
It is estimated that the pretax profits of Vietinbank during the first 6 months of 2018 reached VND5,200 billion (US$226 million).
Recently, Vietnam International Bank (VIB) also recorded huge profit leap. VIB’s pretax profit duing the first 5 months of 2018 reached VND918 billion (US$39.9million), 230% higher than the same period of last year and almost fulfill 50% profit target of the whole 2018.
From now until the end of July, the Vietnam commercially will report business results of the first half of 2018.

DIEP NGUYEN