Vietcombank Reports US$214Mln in Pre-tax Profit

The Vietnamese state-run Bank for Foreign Trade of Vietnam (Vietcombank), the second-biggest bank in the country by assets, reported pre-tax profit of VND3.43 trillion (US$214 million), according to Vietcombank’s business report released February 1.

 

The bank’s report said Vietcombank’s corporate income tax reached VND957 billion.

 

However in addition to interest, income from other services after deducting cost was minus VND52 billion in the fourth quarter of last year, and minus VND377.735 billion for the whole year 2006.

 

Last year, Vietcombank’s service revenue included VND360 billion in payment services, and VND245 billion in forex trading. Among service expenses, expenses for staff were the largest at nearly VND418 billion; followed by expense for fixed asset depreciation, VND270 billion; and expenses for management, VND205 billion.

 

As scheduled Vietcombank will finalize its equitisation process in 2007.

 

According to the central bank, Vietcombank has completed negotiations with the first-grade consulting firm. After viewing the negotiating results, the Equitisation Steering Board has asked Vietcombank to re-negotiate the fee. In case the fee cannot be reduced, Vietcombank is allowed to negotiate with the second-grade consulting firm. (Vietnam Economic Times, Vietnam Panorama)