Moody's upgrades two VN banks’ ratings
Moody's upgrades two VN banks’ ratings
Orient Commercial Joint Stock Bank (OCB) announced on Wednesday that its local and foreign currency counterparty risk ratings and counterparty risk assessment have been upgraded to Ba3 by Moody's Investors Service.
Ba3 is the highest rating in Viet Nam in recent times, and the upgrade reflects the bank’s improvement in terms of capital and assets as well profitability, it said.
Moody said on its website the outlook for OCB's long-term ratings remains stable, and the bank's overall liquidity is comfortable, with liquid resources representing 40 per cent of tangible banking assets at the end of 2018.
In the first quarter of this year, OCB reported growth in all segments. By the end of the quarter, its assets were up 30 per cent year-on-year to nearly VND101 trillion (US$4.4 billion).
Profit after tax was VND536 billion ($23.5 million), representing 135 per cent of the target.
Moody's Investors Service has also affirmed Sai Gon-Ha Noi Commercial Joint Stock Bank's (SHB) B2 long-term local and foreign currency deposit ratings, B3 baseline credit assessment (BCA) and adjusted BCA and B1/NP local and foreign currency counterparty risk ratings, and B1(cr)/NP(cr) counterparty risk assessment.
One notch rise was based on Moody's assessment of a moderate probability of support from the Vietnamese Government in times of need.
SHB's return on tangible assets improved slightly to 0.59 per cent in 2018 from 0.54 per cent in 2017.
Revenues rose in line with loan growth and margin expansion though the improvement was offset by high operating and credit costs.
Moody's expects SHB's profitability to remain at current levels as it continues to make provisions for its large stock of problem assets.
