Sunday, June 24, 2018 9:34:39 PM - Markets open
VN-INDEX 983.17 +13.77/+1.42%
HNX-INDEX 111.98 +1.82/+1.65%
UPCOM-INDEX 51.81 +0.02/+0.03%
Banks fulfill 25-30 percent of profit goal
VietnamPlus - 4/12/2018 3:38:13 PM
 (0 ratings. You must sign in to rate.)
Many banks were estimated to meet 25-30 percent of their annual profit targets by the end of March, although the first quarter is usually the most sluggish for banks.
According to Luu Trung Thai, General Director of Military Bank, the turnover of his bank in the first quarter is estimated at 3.5-3.6 trillion VND (154.2-158.6 million USD), while the minimum pre-tax profit is at some 1.6 trillion VND, up 44 percent year-on-year.
With the rise, Thai believed that it is feasible for his bank to meet the 6.8 trillion VND profit target set for this year, up 47 percent against last year.
VIB Chairman Dang Khac Vy said his bank’s cost-income ratio reached 52 percent and pre-tax profit exceeded 500 billion VND in the first quarter, three times higher than the same period last year.
By the end of the first quarter, VIB met 25 percent of its total pre-tax profit target of 2 trillion VND set for 2018.
With a monthly profit of some 350 billion VND, HDBank estimated its profit to reach nearly 1.05 trillion VND in the first quarter, three times higher than the same period in 2017. With a profit target of 3.9 trillion VND for 2018, the bank has already met 28 percent of the annual plan.
Orient Commercial Joint Stock Bank’s profit by the end of March also tripled that of the same period last year to reach more than 600 billion VND. The bank plans to earn a profit of 2 trillion VND this year.
LienVietPostBank achieved 28 percent of the annual profit target as it posted a pre-tax profit of more than 500 billion VND by the end of the first quarter.
Experts attributed the positive business performance of banks to the credit growth right at the beginning of the year. According to the National Financial Supervisory Commission, outstanding loans in the banking system, as of March-end, were estimated to have risen by 3.5 percent against December last year, of which loans in Vietnamese dong increased by 3.3 percent and accounted for 91.9 percent of total outstanding loans.
Besides the high credit growth, another factor that has helped the banks prosper in the first quarter is the positive bad debt settlement as banks have not had to spend as much on risk provisioning as in previous years.
Assessing the factors affecting the banking sector in 2018, analysts of Saigon Securities Incorporation (SSI) said credit would continue to be improved, in which the opportunity of consumer credit to prosper was highly valued.
According to SSI, the average cost of capital in 2018 will be reduced because of the Government’s support policies and significant improvement in the balance of payments in 2017 and 2018. 
Specifically, the refinancing, rediscount, overnight and OMO (open market operations) interest rates were cut by 0.25 percentage points per year over the past year.
The sale of stake in State-owned enterprises in 2018 will continue to attract a large amount of foreign capital, leading to the need to pump a large amount of local currency into the system, SSI said.
Considering the above factors, SSI predicts that profits in 14 listed banks will surge at an average of 32.9 percent in 2018.-VNA
Read original article here
Newer News
23/06 CCM cancels listing on HNX
23/06 VGC: Ministry to sell 18% stake in Viglacera
22/06 BSR earns 54 trillion VND in revenue in six months
19/06 KEB Hana Bank BIDV’s potential strategic investor: VCSC
19/06 BCG: Bamboo Capital to focus on core business activities
18/06 Vietnamese textile stocks failing to woo investors
18/06 TCB: Techcombank to increase charter capital to 1.53 billion USD
15/06 NLG: Nam Long Corporation offers five million shares for foreign investors
15/06 BSR first shareholders’ meeting
14/06 BSR: Binh Son refinery reports high profit in six months
Older News
11/04 HPG: Hoa Phat steel grows 10 percent in Q1
10/04 SBT to buy back 83.5 million shares
10/04 Vingroup enters pharmaceutical industry
10/04 HPG: Hoa Phat exports wire drawing steel to Laos, RoK
09/04 Moody’s upgrades VPBank’s credit rating for second year
07/04 Vietinbank and PG Bank deal collapses
07/04 Sabeco asked to hold shareholders’ meeting on personnel matters
06/04 TPBank heads to HSX at VND32,000 initial price
05/04 HVG: Seafood firm Hùng Vương to sell assets to offset losses
04/04 HAGL reports decrease of $29 million in audited financial statements
Newsletter Signup
Top Stories
VN manufacturing PMI hits 22-month high in March
CPI goes up 4.96 percent year-on-year in first quarter
Slight rise in February CPI
Draft decree on State monopoly in trade submitted to Government
CPI ups 0.46% in January
Market Update
Last updated at 3:12:04 PM
VN-INDEX 983.17 +13.77/+1.42%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.