Tuesday, November 20, 2018 1:17:00 AM - Markets open
VN-INDEX 916.06 +17.87/+1.99%
HNX-INDEX 103.95 +0.93/+0.91%
UPCOM-INDEX 52.40 +0.38/+0.74%
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
19/11 FUCTVGF2: NAV week from 09 Nov 2018 to 15 Nov 2018
19/11 FUCTVGF1: NAV week from 09 Nov 2018 to 15 Nov 2018
19/11 FUESSV50: Announcement after exchange trading 16 Nov 2018
19/11 FUESSV50: Basket of component securities 19 Nov 2018
19/11 FUESSV50: NAV 16 Nov 2018
19/11 E1VFVN30: NAV 18 Nov 2018
19/11 E1VFVN30: Basket of component securities 19 Nov 2018
19/11 E1VFVN30: Announcement after exchange trading 16 Nov 2018
19/11 SBT: Resolution on the 2017-2018 AGM
19/11 TYA: BOD resolution on bank loan
Older News
12/04 E1VFVN30: Announcement of the change of listing
12/04 PGI: BODs Resolution on holding 2018 AGM
12/04 NVL: Plan for private placement of 80 million shares
12/04 GTA: Business performance in Q1.2018 & plan for Q2.2018
12/04 PXT: Decision on tax penalties
12/04 VPG: Board resolution on borrowing
12/04 TLH: Information on liabilities
12/04 AAA: Transaction of related person
12/04 FCN: Decision on the change of listing
12/04 HCD: Announcement of the change of listing
Newsletter Signup
Top Stories
VN Index to rise amid volatility, weak liquidity
VN stocks continue rallying
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
Market Update
Last updated at 3:09:16 PM
VN-INDEX 916.06 +17.87/+1.99%
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.