Banks start to report business performance
Banks start to report business performance
Some commercial banks have started to release business results from the first nine months of this year.
Nguyen Ho Hoang Vu, deputy general director of Export-Import Commercial Joint Stock Bank (Eximbank), said the bank’s pre-tax profit from core businesses by the end of September was VND1.2 trillion (US$51.72 million), completing 84 per cent of this year’s pre-tax profit target which was set at VND1.43 trillion.
However, the annual profit plan was significantly adjusted down by 40 per cent in May compared to the initial plan.
Under the impact of the COVID-19 pandemic, banks’ lending is facing difficulties as capital demand declines, especially among corporate customers. This caused many banks to record negative credit growth in the first half of this year, including Eximbank with negative 9 per cent. At the same time, the revenue from bank services was also affected as banks had to lower fees and interest for customers.
The general director of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) Nguyen Duc Thach Diem said by the end of September, the bank had completed 90 per cent of its profit plan for the whole year. This year, the bank aims to achieve a consolidated pre-tax profit of VND2.57 trillion, down by 20 per cent compared to the results in 2019.
According to Diem, in the last months of the year, credit demand is likely to improve in the peak business season. Current outstanding credit growth of the bank currently tends to increase, while the declining deposit interest rates create more conditions to lower lending interest rates, improving credit.
In addition to priority areas, according to Diem, lending interest rates at Sacombank are considerably lower than previously. The bank was approved by the State Bank of Viet Nam (SBV) to increase the credit growth room limit from 11 per cent to 13.5 per cent this year to have more room for lending in the peak business season in the final months of the year.
Sacombank’s profit growth this year was expected to exceed the target of 20 per cent, equal to last year’s VND3.2 trillion, said Diem.
General director of Viet Capital Commercial Joint Stock Bank (VietCapitalBank) Ngo Quang Trung said in the first nine months of 2020, the bank has completed 60 per cent of the profit target for the year. The bank aims to expand pre-tax profit this year by 27 per cent compared to VND158 billion last year.
According to Trung, outstanding loans are improving and likely to reach a higher level at the end of the year, aiding profit results. By the end of the first nine months of 2020, VietCapitalBank’s credit growth was 9 per cent compared to the beginning of the year.
