3:26:31 PM | 7/8/2005
The State-run Bank for Foreign Trade of Vietnam (Vietcombank) will carry out first steps in the process of equitisation (
Vietcombank continued to harvest successes in 2004 with pre-tax profits increasing by 40 per cent year-on-year to reach around VND2,000 billion (US$127.4 million). It remained the leading bank in the field of import-export payment, trade financing, and issuance of domestic and international credit and payment cards.
Total import-export payments by Vietcombank reached up to around US$16 billion in 2004, representing an increase of 29 per cent against 2003 and accounting for nearly 29 per cent of market share in terms of import-export payments. Foreign currencies trading in the State-run commercial bank was positive last year with total turnover of around US$12.79 billion, up 27.3 per cent on-year.
Last year, Vietcombank reported credit and deposit growth rates of nearly 30 per cent and 22 per cent, respectively, both higher than the averages rates of the local banking system. Credit quality was good while costs for raising funds were kept at low levels. Thanks to good operation in previous years, Vietcombank raised capital adequate ratio to 4.5 per cent (still lower than international standard of 8 per cent). Other fundamental indicators of the bank were improved remarkably after four years of restructuring: outstanding loans/assets ratio jumping to 40 per cent as of the end of 2004 from 20 per cent in 2000; total assets rising to VND120,000 billion (US$7.64 billion) from VND65,000 billion (US$4.14 billion); outstanding loans surging to VND48,000 billion (US$3.06 billion) from VND16,000 billion (US$1.02 billion); bad debts decreasing to below 3 per cent from 25 per cent; and profits up-surging four-fold from VND500 billion (US$31.8 million) to VND2,000 billion (US$127.4 million).
Vietcombank has so far issued nearly 500,000 domestic credit cards Connect 24, up 200 per cent against the figure as at the end 2003. Total payment revenues via the bank’s domestic cards up 150 per cent against 2003. According to head of Vietcombank’s Credit Card Management Center Nguyen Tu Anh, the bank attracted over VND2,000 billion (US$127.4 million) worth of call deposits (low interest rate) via accounts opened for using credit cards.
The bank now owns the biggest automated teller machines (ATM) network in
In 2004, Vietcombank signed a five-year credit contract worth total US$150 million with the Austrian RZB Bank in order to restructure its capital. This is the first mid-term commercial loan a local bank has signed with a foreign bank, showing that Vietcombank has gained prestige on the international stage. The move opened a new way for local enterprises in approaching foreign capital sources.
Entering 2005 - the last year in the scheme of financially restructuring and beginning the second phase of the strategy “Vietcombank’s Vision by 2010”, according to general director Dr. Vu Viet Ngoan, Vietcombank will focus on developing into a modern commercial bank. It will also carefully prepare for equitization in order to become a strong and prestigious financial consortium in the region. The bank will apply new and modern management methods and carry out financial disclosures following international standards. Vietcombank will also focus on improving the ability of its staff to make them be able to keep up with new management methods. Besides, Vietcombank will apply other international standards in classifying debts, controlling risks, further diversifying assets and boosting wholesale activities in combination with development of other services, new products on the basis of modern technologies.
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