Q1 bank results on the up

16:44 | 10/05/2014
According to its financial statement from the first quarter, Techcombank achieved consolidated pre-tax profit of VND673 billion ($32 million), up 69 per cent on-year and equivalent to 57 per cent of the annual target.

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Similarly, Eximbank achieved satisfactory business results in the first four months, with profits estimated at VND580-600 billion ($27.6-28.5 million) two-thirds of profits made in the whole of 2013.

The bank plans to reach a pre-tax profit of VND1.8 trillion ($85.7 million) in 2014, double that of 2013.

Another strong performer in the first quarter was Saigon-Hanoi Bank (SHB), with pre-tax profits of VND271.5 billion ($12.9 million), a VND53.9 billion ($2.56 million) increase against last year. The lender’s credit growth rate, pre-tax profit and dividend rate are expected to stay at 22.8 per cent, VND1.27 trillion ($60.47 million) and 9 per cent through this year.

The first quarter also saw credit grow more quickly at many banks. VIB’s was at 7.1 per cent and TPBank at 12 per cent. Some other bank such as BIDV and Techcombank also reported a 2-3 per cent rise.

Such increases are considered very high compared with common rate of the banking system of 0.62 per cent as of April 20.

These increases are astronomical compared to the banking sector’s 0.62 per cent average.

Many experts have said banks are seeing solid profits. For joint stock banks, profit centers are mainly banking services and retail while for state-run banks they are credit activities thanks to their relationships with SOEs.

Outstanding loans to individuals make up 30-40 per cent of the total at joint stock banks while at big state banks 75-80 per cent is made up of loans to state groups and enterprises.

By By Nguyen Trang

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