Profit targets within reach for domestic banks as 2019 draws to a close

Domestic banks are in a position to complete their 2019 profit targets if they finish the year on a high.

Profit targets within reach for domestic banks as 2019 draws to a close

Thanks to high profits in the first three quarters of the year, many banks are close to reaching their yearly targets, while others are positive that the busy fourth quarter will be enough to get them over the finish line.

According to the Military Commercial Joint Stock Bank (MBBank), the bank was on course to exceed its profit target.

MBBank closed the first ten months of 2019 with pre-tax profit of more than 8 trillion VND (347.82 million USD), completing 96 percent of its annual target approved by shareholders in April.

The Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) is also confident of completing its profit goal of 20 trillion VND.

After recording its highest profit ever in the first three quarters of 2019 thanks to growing revenue from retail and services, it should be easy for the Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) to meet its targets this year. The bank achieved pre-tax profit of more than 17.5 trillion VND in the first nine months, completing 86 percent of the annual plan.

With record profits estimated for this year, Vietcombank has already set an ambitious profit target of 2 billion USD in 2025. The main motivation for the bank’s growth will be retail and digital banking, of which retail will account for half of the profit. Regarding digital banking, Vietcombank aims to maintain its leading position in the market.

The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) is also on track to meet its 2019 profit target of 11.75 trillion VND having already 8.9 trillion VND in pre-tax profit in the first three quarters of the year.

 

Nguyen Dinh Tung, general director of Orient Commercial Joint Stock Bank (OCB), also believed that his bank would complete its yearly profit target, or even exceed it, because the last quarter was the peak season. In October alone, OCB attained more than 900 billion VND in pre-tax profit, Tung said.

FE Credit had contributed significantly to the Vietnam Prosperity Commercial Joint Stock Bank (VPBank)’s profit, ao the bank said it would meet or even exceed the pre-tax profit target of 9.5 trillion VND in 2019.

Le Anh Tuan, head of research at Dragon Capital Management Co, said banks’ profits were forecast to continue being positive this year although they still had to set aside a significant provision for risky loans.

Anh explained revenue from credit had remained high. Though credit growth this year was somewhat tighter, the central bank had still expanded credit growth limits for commercial banks, which had successfully implemented Basel II standards, Anh said.

Moreover, profits had also increased significantly since thanks to revenue from services, Anh added. VNS

Bank customers warned of message scams

Bank customers warned of message scams

The Ministry of Public Security has issued a warning over a new type of scam where apparent official bank messages are sent to customers to appropriate money.

Indonesia’s Bank Mandiri to expand business to Vietnam

Indonesia’s Bank Mandiri to expand business to Vietnam

PT Bank Mandiri Tbk of Indonesia is planning to expand its business to the Philippines, Malaysia and Vietnam, its director Darmawan Junaidi told reporters on December 11.

 
 

Other News

.
Boeing to bring more technologies to local airlines
Boeing to bring more technologies to local airlines
BUSINESSicon  18/10/2020 

To cope with the COVID-19 pandemic, Boeing has sped up its ecoDemonstrator programme to support its partner airlines, including those in Vietnam.

VN has been active as foreign companies plan investment relocation
VN has been active as foreign companies plan investment relocation
BUSINESSicon  18/10/2020 

Vietnam has been seen as an ideal destination for foreign companies looking for elsewhere to relocate production channels in a bid to diversify their supply chains in the post-Coronavirus pandemic.

Exploitable security plagues digitalisation
Exploitable security plagues digitalisation
BUSINESSicon  19/10/2020 

Disruptive technologies spur the evolution in the financial landscape, with comprehensive applications providing convenient access to customers’ banking needs.

MoIT helps enterprises deal with increasing trade remedy cases
MoIT helps enterprises deal with increasing trade remedy cases
BUSINESSicon  17/10/2020 

Vietnam’s export goods face more trade remedies in the process of deep economic integration, so the Ministry of Industry and Trade has developed solutions for the situation.

ASEAN pushes forward with 5G connectivty cooperation
ASEAN pushes forward with 5G connectivty cooperation
BUSINESSicon  17/10/2020 

As ASEAN chair this year, Vietnam is playing a crucial role in further cementing joint activities within the bloc via boosting the application of high technologies to adapt to Industry 4.0, which is sweeping throughout the region.

Real estate stocks await cash flow
Real estate stocks await cash flow
BUSINESSicon  17/10/2020 

Domestic and foreign capital flow is expected to bolster real estate shares after the COVID-19 pandemic as many investors are paying attention to the industry.

Online exports require professionalism
Online exports require professionalism
BUSINESSicon  17/10/2020 

Using online platforms to boost exports is the fastest way to bring Vietnamese goods to the world, said business leaders and industry experts.

Vietnam to become the 4th largest economy in Southeast Asia: IMF
Vietnam to become the 4th largest economy in Southeast Asia: IMF
BUSINESSicon  17/10/2020 

Vietnam's GDP is estimated to reach US$340.6 billion this year, making it the fourth-largest economy in Southeast Asia.

The dark future of hotels on 'golden land' in Hanoi
The dark future of hotels on 'golden land' in Hanoi
BUSINESSicon  18/10/2020 

A series of hotels have had to cancel their opening plans this year because of Covid-19. Many hotels have been put up for sale because of poor patronage.

Special day for two billionaires: mountains of money pouring in
Special day for two billionaires: mountains of money pouring in
BUSINESSicon  18/10/2020 

Techcombank share prices have soared, while the Hoa Phat Group of the billionaire Tran Dinh Long has reported a record 30-year profit. The prosperity of these enterprises has helped their owners earn more money despite Covid-19.

Many hoteliers intend to divest capital due to heavy losses
Many hoteliers intend to divest capital due to heavy losses
BUSINESSicon  16/10/2020 

Over the past eight months, hotel room tariffs have plunged and hotel room occupancy rates have remained low, forcing several hoteliers to divest capital with many financially weak hotels in the local market being put up for sale.

Meeting expectations of the corporate bond market
Meeting expectations of the corporate bond market
BUSINESSicon  16/10/2020 

A new government decree tightens conditions on the issuance of corporate bonds. However, before the decree came into effect, enterprises flooded the market with new issuances.

M&A activities signal promising fortunes
M&A activities signal promising fortunes
BUSINESSicon  17/10/2020 

Although merger and acquisition levels dropped in 2020 across Vietnam, the prospect for such activities remain bright for next year as overseas investors look to local businesses in order to improve market access.

Thai billionaire, European brewer lose money in Sabeco investment deal
Thai billionaire, European brewer lose money in Sabeco investment deal
BUSINESSicon  16/10/2020 

The Sabeco price has seen a strong recovery in the last half a year, but is still at a low price. Both Thai billionaire and the big brewer Heineken have lost money because of the drop in Sabeco share price.

Investors lose billions of VND as land prices keep rising
Investors lose billions of VND as land prices keep rising
FEATUREicon  17/10/2020 

A lot of real estate traders have missed opportunities to make huge profits because they decided to postpone purchasing plans, hoping that prices would decrease further.

Salary increases in 2020 lowest in 10 years: survey
Salary increases in 2020 lowest in 10 years: survey
BUSINESSicon  16/10/2020 

Salaries increased by 6.5% this year at multinational companies (MNCs) and 5.2% at Vietnamese companies, and are forecast to increase by 7 per cent and 7.7% next year, according to the Talentnet – Mercer Total Remuneration Survey.

The right structural adjustments help Vietnam achieve long-term growth aspirations
The right structural adjustments help Vietnam achieve long-term growth aspirations
BUSINESSicon  17/10/2020 

No nation has escaped the threat of COVID-19 to lives and livelihoods, with many countries seeing cases resurge recently. 

State firms more resilient than foreign, Vietnamese private companies: survey
State firms more resilient than foreign, Vietnamese private companies: survey
BUSINESSicon  15/10/2020 

Business resilience is highly correlated with level of digitisation, the Business Pandemic Resilience Diagnostic conducted by Grant Thornton...

Pandemic a test of fire for Vietnamese enterprises
Pandemic a test of fire for Vietnamese enterprises
BUSINESSicon  15/10/2020 

The COVID-19 pandemic has been a test for Vietnamese businesses as many have been and will be struggling to recover for the foreseeable future. 

Five expy projects unlikely to attract private investors
Five expy projects unlikely to attract private investors
BUSINESSicon  15/10/2020 

Although the National Assembly Standing Committee has given its approval to switch three of the eight subprojects of the North-South Expressway from the public-private partnership (PPP) format into wholly State-invested, 

 
 
 
Leave your comment on an article

OR QUICK LOGIN