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 VNĐ4.273 trillion (US$190.75 million) in the first six months, up 10.3 per cent against the same period last year. Vietinbank General Director Lê Đức Thọ said the bank’s total assets also increased nine per cent to reach VNĐ850 trillion by the end of June.
“In the January-June period, the bank mobilised VNĐ780 trillion, up 9.6 per cent, while its outstanding loans were worth VNĐ729 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 Phạm Quang Dũng 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 VNĐ535.2 trillion, up 6.7 per cent over the end of last year. Its outstanding loans totalled VNĐ437.6 trillion, increasing 10.8 per cent over the end of 2015.
Dũng 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, Dũng said. Previously, BIDV had also announced its pre-tax profit of VNĐ3.6 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 VNĐ205 billion after making provision for risky loans. In a recent survey conducted by the State Bank of Việt 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’.
