Banks in Vietnam report hefty Q1 profits
Banks in Vietnam report hefty Q1 profits
The first quarter of this year saw many commercial banks in Vietnam produce positive business results, with their profits reaching trillions of Vietnamese dong, despite global economic volatility. (VND1 trillion = US$42.8 million).
In particular, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) recorded a consolidated profit of over VND11.2 trillion ($479.2 million) last quarter, up nearly 14 percent year on year and reaching 26 percent of its 2023 target, Vietcombank chairman Pham Quang Dung informed at the bank’s general shareholders’ meeting last Friday.
The bank’s credit and deposit growth reached 2.5 and 3.2 percent, respectively, higher than the local banking system’s average.
With these results, state-run Vietcombank is confident to exceed targets for this year, Dung said.
Meanwhile, Vietnam Prosperity Joint Stock Commercial Bank (VPBank) generated some VND4 trillion ($171.1 million) in profit in the first three months of the year, said VPBank general director Nguyen Dac Vinh.
The bank’s profit target of VND22 trillion ($939.4 million) this year is attainable although it has met merely one-fifth of the target, Vinh noted.
Key reasons for the bank’s growth are retailers and small and medium enterprises, which are expected to post a respective growth rate of 40 and 35 percent this year, Vinh said.
VPBank is also pinning its hopes on the foreign direct investment segment with the cooperation of Japan’s Sumitomo Mitsui Banking Corporation.
At Saigon-Hanoi Commercial Joint Stock Bank (SHB), the pre-tax profit amounted to VND3.6 trillion ($153.7 million) in the first quarter of 2023, rising 10 percent over the same period last year, SHB general director Ngo Thu Ha said.
The bank has reached 35 percent of its full-year profit target of VND10.3-10.6 trillion ($439.8-452.6 million).
LienVietPostBank, in its financial report for the first quarter, pegged its after-tax profit at over VND1.2 trillion ($51.3 million), down 11 percent year on year.
The bank attributed the fall to uncertainties in the global and domestic markets, which hit business activities of many individuals and enterprises, including those in the banking sector.
