Banks report satisfactory business results for 2020

Improving corporate governance and listing shares on the bourse were the major activities of banks in 2020. Digital transformation was also accelerated.

TP Bank's total assets reached VND206.316 trillion, an increase of 24.47 percent over 2019. The total mobilized capital reached VND184.953 trillion, up by 25.15 percent. The total income was VND10.368 trillion, up by 22.4 percent.

Banks report satisfactory business results for 2020

As the bank cut costs thanks to digital banking, its pre-tax profit in 2020 was 11 percent higher than in 2019, though the economy was hit by Covid-19 and the bank had to ease lending interest rates.

The bank maintained high business performance, with ROA (return on asset) and ROE (return on equity) at 1.89 percent and 29.5 percent, respectively.

TP Bank was one of the banks completing all three pillars for Basel II, which will strengthen risk management. Its bad debt ratio was just 1.14 percent at the end of 2020, which was lower than 2019. Its CAR was 12.8 percent, much higher than the required minimum level of 8 percent for Basel II.

AB Bank reported its pre-tax profit at VND1.378 trillion as of November 30, which was even higher than the business target set for the year 2020.

All its indicators were good with total assets of VND92.337 trillion, mobilized capital of VND72.013 trillion, outstanding loans of VND65.048 trillion, ROE of 18.28 percent, ROA 1.6 percent and CAR 10.64 percent. The bad debt ratio was 2.32 percent by November 30, 2020.

Prior to that, on the last day of 2020, SHB stated it had completed all the three pillars of Basel II ahead of schedule.

SHB CEO Nguyen Van Le said the bank will immediately begin striving for Basel III standards to create a sustainable business foundation, and a corridor for risk management and effective capital use.

 

LienViet Post Bank and HDBank also reported they have fulfilled the three pillars of Basel II ahead of schedule.

The HCM City Stock Exchange (HOSE) on December 30 accepted the listing of 1.2 billion shares of SeA Bank (SSB). Prior to that, more than 1 billion OCB shares were accepted to be listed there. SSB and OCB will be officially available at the exchange in early 2021.

Meanwhile, 708 million BacABank shares will move from UpCom to he Hanoi Stock Exchange (HNX).

Analysts believe that banks will gear up with digital transformation in 2021 after making great progress in 2020.

At TP Bank, the number of new accounts and cards through LiveBank system in 2020 increased by four times compared with 2019. 

Tran Thuy

Banks to stop issuing magnetic strip cards in three months

Banks to stop issuing magnetic strip cards in three months

Vietnamese banks will only be allowed to issue chip cards from March 31, 2021, according to a State Bank of Vietnam (SBV) draft circular.

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Strategies to suit banking’s challenges

The overall picture of the banking industry in 2020 and into 2021 has revealed both strengths and weaknesses. 

 
 

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