Foreign-invested banks make handsome profits in Vietnam in H1
Foreign-invested banks make handsome profits in Vietnam in H1
The South Korean-invested Shinhan Bank, or Shinhan Vietnam, recorded a huge after-tax profit of some VND2.4 trillion (US$100.2 million) in the first half of the year, while multinational banking and financial service institution HSBC, or HSBC Vietnam, enjoyed a year-on-year increase of 2.4-fold in profits during the period.
Shinhan Vietnam’s hefty profit was equal to 65 percent of the previous year’s full-year figure the bank had booked.
Thanks to its big profit, the bank’s return on equity (ROE) ratio rose to 17.47 percent from 14.07 percent.
As of June 30, its owner's equity had stood at over VND27.6 trillion ($1.15 billion), up nearly VND2.4 trillion ($100.2 million) from the start of the year.
The South Korean bank’s debt-to-equity ratio fell to 4.72 from 5.92 times over the first six months of 2023, equivalent to VND130.3 trillion ($5.4 billion), with outstanding bonds accounting for VND2.76 trillion ($115.2 million).
Besides, its capital adequacy ratio improved to 20.43 percent from 17.84 percent compared to the start of the year.
Shinhan has its offices and branches in 20 nations. The first Shinhan representative office in Vietnam was opened in 1993.
The other foreign-invested bank, HSBC Vietnam, also boasted positive business results between January and June.
Its after-tax profit during the six-month period amounted to VND2.65 trillion ($110.6 million), up 2.4-fold year on year.
Its net earnings reached an impressive VND4 trillion ($167 million), a 2.6-fold year-on-year increase.
As of late June, HSBC Vietnam’s total assets had reached VND190.29 trillion ($7.94 billion), while its owner's equity topped VND18.7 trillion ($780.3 million), up 17 percent year on year.
Bucking the trend of a meltdown among local banks, Shinhan Vietnam and HSBC Vietnam achieved positive business results in the first half of 2023.
During the period, 27 listed Vietnamese banks saw a combined after-tax profit drop 2.9 percent year on year.
