Over the first quarter of 2018, scores of Vietnam-based commercial banks reported million dollar profits despite an overall sluggish market.

Despite the first quarter usually being the "slow season," banks reported high profit figures

Luu Trung Thai, general director of Military Commercial Joint Stock Bank, asserted that, “In the first quarter of 2018, the bank’s pre-tax profit hit VND1.6 trillion ($70.08 million), which was a 44 per cent growth compared to the same period in 2017. Previously, the bank expected to secure VND6.8 trillion ($297.84 million) in total revenue by the end of 2018.”

Additionally, HDBank was reported to acquire an inundating VND1.05 trillion ($45.99 million) accumulated earnings in the first quarter. Consequently, the bank set the dividend rate of 30 per cent, which would be the main point of discussion at the bank’s upcoming annual general meeting (AGM) on April 21.

Also in the first three months of 2018, LienVietPostBank reported VND500 billion ($21.9 million) in total profits, fulfilling 28 per cent of the profit target for the entire year. Previously, the commercial bank posted the target of VND1.8 trillion ($78.84 million) in total pre-tax profit by the end of 2018.

Likewise, over the same period, OCB’s total profit mounted up to VND600 billion ($26.28 million), a 240 per cent growth on-year and 30 per cent of the 2018 profit target. Previously, as stated at the 2018 AGM, the bank expected to land VND2 trillion ($87.6 million) in total profit throughout 2018, which is double the figure recorded in 2017.

Another commercial bank reporting million-dollar profit was VIB, with VND500 billion ($21.9 million) in pre-tax profit. The bank expects to earn VND2.005 trillion in pre-tax profit by the end of 2018.

Can Van Luc, a Vietnamese financial analyst, highlighted that these profit figures are quite an accomplishment, taking into account that the first quarter is usually the most sluggish of the year.

Luc also attributed the impressive business results to the enhanced legal framework, such as Resolution 42 on the handling of non-performing loans after the owners fail to repay debts, as well as positive credit growth rate.

VIR