Banks aim high despite market challenges

Banks aim high despite market challenges

HCM City's major joint-stock banks have set ambitious credit growth targets for this year though the market remains very difficult.

Last Saturday, DongA Bank said it would achieve 9 per cent growth to reach VND55.2 trillion (US$2.6 billion).

Its general director Tran Phuong Binh said the economy continued to be shrouded in difficulty like last year, with non-performing loans being a major problem.

Demand for credit showed no signs of improving while quality of credit posed other challenges, he said.

The bank would therefore have to cut costs, improve risk management, and expand strategic partnerships, he said.

Statistics from the State Bank of Viet Nam show credit grew by a mere 0.03 per cent in the first quarter compared to a decrease of 1.96 per cent a year earlier.

A day earlier, Eximbank's shareholders agreed at the annual general meeting that credit growth would be set at 15 per cent to top VND86 trillion ($4.1 billion).

With corporate clientele being its strength, Eximbank will continue to lend to this constituency while also stepping up lending to individual customers. Late last year, it had allocated VND5 trillion ($240 million) for lending at preferential interest rates.

Sacombank's shareholders last Thursday approved a credit growth of 12 per cent this year, with total outstanding loans reaching around VND109 trillion ($5.2 billion).

In addition, both Sacombank and DongA Bank plan to increase turnover from other activities to reduce dependency on lending operations.

vietnamnews