Bank assets soar as shares are 'hot'

Encouraged by the prosperity gained in 2020, the biggest commercial banks in Vietnam target making a profit of VND1 billion this year.

Bank assets soar as shares are 'hot'

Techcombank president Ho Hung Anh

Techcombank, owned by billionaire Ho Hung Anh, has released documents for the 2021 shareholders’ meeting which show an ambitious business plan to obtain pre-tax profit of VND20 trillion this year, or 25 percent higher than last year.

If succeeding, Techcombank would be the second bank in Vietnam and the first joint stock bank to hit the $1 billion profit threshold. Prior to that, profit was gained by Vietcombank, where the state holds the controlling stake.

Techcombank projects the highest profit target in its history based on a 12 percent growth rate in credit and 14.7 percent growth rate in capital mobilization.

Though the profit was high in 2020, Techcombank intends not to pay dividends to shareholders. The bank’s managers are going to submit to shareholders a plan to retain profit to serve business projects.

However, it plans to issue ESOP, about 6 million shares, at VND10,000 per share, inconvertible within one year. In November 2020, Techcombank also issued 4.76 million under the ESOP program.

Meanwhile, Vietcombank has set a profit target of VND30 trillion in 2021.

In January 2020, Vietcombank became the first listed company reporting profit of $1 billion for one year. It saw aprofit of VND23 trillion in 2019.

 

In 2020, Vietcombank reported consolidated profit of VND23 trillion, or $1 billion, though Vietnam’s banks and businesses experienced the toughest ever year because of the Covid-19 pandemic.

Vinhomes (VHM), owned by billionaire Pham Nhat Vuong, also reported a record high profit of VND11.5 trillion in Q4 2020, twice as high as the same period of the year before, after handing over Vinhomes Ocean Park, Grand Park and Smart City projects. The total consolidated profit reached VND37 trillion in 2020, up by 25 percent over 2019, while EPS was VND8,463, up by 30 percent.

Vietcombank has a quota for 10.5 percent credit growth rate this year. VietinBank, BIDV and Agribank, the other three in the big four have been granted quotas of 6-7.5 percent. The targets are 11-12 percent for some joint stock banks, but the banks have a small credit scale. With the 10.5 percent credit growth rate and its large scale, credit to be provided by Vietcombank would be the highest in the market.

According to SSI Research, the profits of Vietcombank and BIDV may increase by 75-85 percent in Q1 after provisioning, while private banks expect a 45-55 percent increase in pre-tax profit.

In related news, Moody’s has upgraded Sacombank’s long-term deposit rating from Caa1 to B3 with stable prospects. 

V. Ha

Bank shares in demand as banks report huge profits

Bank shares in demand as banks report huge profits

The capitalization value of some banks has increased by one billion dollars within a short time.

Stock market size on HOSE reaches nearly 71 percent of GDP

Stock market size on HOSE reaches nearly 71 percent of GDP

Vietnam’s stock market capitalisation on Ho Chi Minh Stock Exchange (HOSE) as of March 31 skyrocketed 93.56 percent year-on-year to more than 4.46 quadrillion VND (193.72 billion USD), HOSE said.

 
 

Other News

.
Forbes names six Vietnamese billionaires in latest rich list
Forbes names six Vietnamese billionaires in latest rich list
BUSINESSicon  07/04/2021 

Globally-renowned business magazine Forbes has just released its annual list of the world’s billionaires, including six billionaires from Vietnam.

Vietnam will have national portal on product traceability this year
Vietnam will have national portal on product traceability this year
BUSINESSicon  07/04/2021 

A national portal on tracing the origin of products and goods is expected to be put into operation in the fourth quarter of this year, according to the Directorate for Standards, Metrology and Quality (DSMQ).

Foreign investments might flow into Vietnam's stock market from the second half of 2021
Foreign investments might flow into Vietnam's stock market from the second half of 2021
BUSINESSicon  07/04/2021 

Bao Viet Securities Company (BVS) expects Vietnam's stock market might attract up to US$1.4 billion from index tracking funds, if Vietnam is officially upgraded to a secondary emerging market by FTSE.

Airlines await “vaccine passports” for resumption of international flights
Airlines await “vaccine passports” for resumption of international flights
BUSINESSicon  07/04/2021 

Although “vaccine passports” are yet to become official, airlines are nonetheless preparing for the resumption of international flights based on their introduction.

Investors of renewable energy projects to be chosen through bidding
Investors of renewable energy projects to be chosen through bidding
BUSINESSicon  07/04/2021 

Investors of renewable energy development projects will be chosen through competitive tenders and they will set the minimum selling price of the output of their projects.

Thousands of hectares of industrial zones approved in first quarter
Thousands of hectares of industrial zones approved in first quarter
BUSINESSicon  07/04/2021 

Dozens of industrial zone projects in 13 cities and provinces covering have been approved in the first quarter, promising thousands of hectares of new space for investors over the coming years.

HCM City approves 8 projects to boost industry, trading, e-commerce, exports
HCM City approves 8 projects to boost industry, trading, e-commerce, exports
BUSINESSicon  07/04/2021 

The HCM City Department of Industry and Trade said eight key projects have been approved by the city government to promote the industry, trading, e-commerce, and exports and facilitate goods transport.

VIETNAM BUSINESS NEWS APRIL 6
VIETNAM BUSINESS NEWS APRIL 6
BUSINESSicon  06/04/2021 

Vietnamese fruit and vegetable sector targets export revenue of $10 billion

Korean conglomerate buys 16.3 percent stake in Vietnam's largest retailer
Korean conglomerate buys 16.3 percent stake in Vietnam's largest retailer
BUSINESSicon  06/04/2021 

Korean conglomerate SK Group said it will make a strategic investment in VinCommerce, Vietnam’s largest retailer, to tap into the fast-growing e-commerce segment in the Southeast Asian market, reported Yonhap News Agency.

Wind power: investors wait for PM’s decision on Feed-in-Tariff price
Wind power: investors wait for PM’s decision on Feed-in-Tariff price
FEATUREicon  06/04/2021 

The Feed in Tariff (FIT) price of VND2,000 per kwh will expire in seven months, but the price for the next period has not been fixed yet.

Inflation not a source of concern for Vietnam: SSI
Inflation not a source of concern for Vietnam: SSI
BUSINESSicon  06/04/2021 

Vietnam’s consumer price index (CPI) is set to average 2.89% in 2021, below the government’s target of 4%.

Shares gain on bank and real estate stocks
Shares gain on bank and real estate stocks
BUSINESSicon  06/04/2021 

The market closed higher on Monday as a series of banking and real estate stocks surged, propelling the indices.

Vuong leaves Vinmart, Quang takes over
Vuong leaves Vinmart, Quang takes over
BUSINESSicon  05/04/2021 

Billionaire Nguyen Dang Quang will build The CrownX into a $10 billion firm and change the name of VinMart to WinMart, which will follow a new operation model after Vingroup, owned by Pham Nhat Vuong, leaves.

VIETNAM BUSINESS NEWS APRIL 5
VIETNAM BUSINESS NEWS APRIL 5
BUSINESSicon  05/04/2021 

Manufacturing, processing maintains strong growth in Q1

Prices surge on stock market, VN Index reaches record high
Prices surge on stock market, VN Index reaches record high
FEATUREicon  05/04/2021 

Many new investors have made high profits after the stock market reached a record high.

Capital market must work to invigorate SOEs
Capital market must work to invigorate SOEs
BUSINESSicon  05/04/2021 

Developing the capital market will help in promoting State Owned Enterprises (SOEs) to mobilize capital and reduce the proportion of commercial credit loans, and diversify in forms of mobilization to supplement capital.

Vietnam earns $11bil from agricultural exports
Vietnam earns $11bil from agricultural exports
BUSINESSicon  05/04/2021 

In the first quarter, agricultural products such as rubber, tea, vegetables, cassava, shrimp and forestry products earned high export value, bringing total export turnover of agricultural products to nearly US$11 billion.

Field-mouse meat more expensive than pork, wild vegetables pricier than US beef
Field-mouse meat more expensive than pork, wild vegetables pricier than US beef
BUSINESSicon  05/04/2021 

The price of field-mouse meat in the Mekong Delta is now higher than that of pork. And in Hanoi, wild vegetables cost more than imported beef bacon, or 10 times more than chicken.

Bull market might continue this week: experts
Bull market might continue this week: experts
BUSINESSicon  05/04/2021 

Vietnam's stock market recorded a week-long rally with the benchmark breaking through 1,200 points and continuously hitting new highs.

Tier system revamped for high-tech strategy
Tier system revamped for high-tech strategy
BUSINESSicon  05/04/2021 

Driven by its digital transformation strategy, Vietnam will set more favourable standards for high-tech businesses’ recognition from next month in a move to develop the country into a high-tech hub.

 
 
 
Leave your comment on an article

OR QUICK LOGIN