Vietnam Banks Report Lucrative Earnings in First 5 Months
Many commercial banks in Vietnam have recently announced earning results for the first five months this year with lucrative profits, the Thoi Bao Kinh Te Viet Nam newspaper reported.
DongA Bank reportedly earned the profit of VND329 billion in the period, fulfilling 43.9 per cent of its 2009 target.
Sacombank reported pretax profit of VND660 billion after provisioning for finance investments and credit risks. The figure did not include profit from member companies of Sacombank group.
ACB’s pretax profit reached VND692 billion by May 15. The HCM City-based lender expected to obtain the profit of VND1,100 billion in the first six months of 2009, and VND2,700 billion in pretax profit for the whole year.
Smaller banks like TienPhong Bank and HDBank also reported satisfactory pretax profit of VND133 billion and VND75 billion, respectively.
Income from credit activities still accounted for 50 per cent of their total profits in the first five months this year despite narrowing difference between deposit and lending interest rates.
Currently, commercial banks have opportunities to expand consumer credit as no ceiling lending interest rate is set for consumer loaning. Meanwhile, the demand for loans to fund house and land purchases has increased.
Bankers say in the next six months the year they may fulfill yearly business targets. When the economy recovers, the demand for capital will increase from businesses. (Vietnam Economic Times)
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