Techcombank, MBBank and VP Bank are top profitleaders

While Vietcombank leads state-owned banks in terms of profit, there are three candidates for the No 1 position among private banks.

Sixteen commercial banks have made public their 2019 finance reports so far. Four state-owned banks, or ‘the big four’, including Vietcombank, Agribank, VietinBank and BIDV, lead the banking system in profit.

Techcombank, MBBank and VP Bank are top profitleaders



Vietcombank is the most profitable bank among the big four. It reported profit of $1 billion, while its index on capitalization value, staff’s average income and bad debt ratio are the best in the banking system.

Meanwhile, Techcombank, MBBank and VP Bank are the best known private banks.

In 2007-2011, Techcombank led private banks in terms of CAGR with 56.1 percent, while the figures were 44.1 percent for MBBank and 35.8 percent for VPBank.

Analysts commented that one of the most important factors that helped Techcombank gain an impressive growth rate in that period was the daring decision on spending VND20 billion, or 1/5 of the bank’s chartered capital at that time, to implement a plan on modernizing technology and using Temenos’ core banking system in 2011.

While Vietcombank leads state-owned banks in terms of profit, there are three candidates for the No 1 position among private banks.

The decision to spend big money at the time when Internet Banking and Mobile Banking were still unfamiliar conceptd in Vietnam, helped Techcombank compete with ‘the big four’, which had powerful financial capability.

 


The heavy investment in technology helped Techcombank lead the banking system in terms of revenue from services. Forty percent of total revenue of the bank came from services, while the figure was just 10 percent for other banks.

In 2012-2015, Techcombank fell from the No 1 position because of bad rumors and considerable changes in the leadership.

Meanwhile, due to expansion of its operation scale, network development, investment in new technologies and reorganised business divisions, MBBank jumped into the first position among private banks.

The new business fields that MBBank joined in that period, including insurance and consumer credit, also began bringing positive effects.

However, the positioning of private banks continues to see big changes. In 2016-2018, the market witnessed fierce competition among Techcombank, MBBank and VP Bank for the No 1 position.

As Techcombank and VP Bank still have not published theor 2019 finance reports, MBBank is temporarily considered the most profitable bank with profit of over VND10 trillion, an increase of 30 percent.

However, analysts said VP Bank is an ‘interesting unknown’. In late December 2019, the bank stated that it had completed the purchase of all special bonds from VAMC and its bad debt had fallen from 5.73 percent by Q3 2018 to Q3 2019.

Thanh Lich 

With new barrier, real estate credit expected to flow more slowly

With new barrier, real estate credit expected to flow more slowly

With Circular 22, which took effect on January 1, the State Bank of Vietnam (SBV) has laid a new block to restrict capital flow to the property sector.

Bad debt increases, posing challenge for banking sector in 2020

Bad debt increases, posing challenge for banking sector in 2020

Commercial banks’ finance reports show that bad debts have been increasing again. Bad debt will be one of big problems for banks this year.

 
 

Other News

.
Proper mechanism needed to export farm produce by sea to China
Proper mechanism needed to export farm produce by sea to China
BUSINESSicon  15/01/2022 

The Ministry of Agriculture and Rural Development and the Ministry of Transport recently co-hosted a conference on promoting the export of agricultural products through maritime transport as a way of devising a proper mechanism for farm exports.

Hanoi to establish 2-5 new industrial parks by 2025
Hanoi to establish 2-5 new industrial parks by 2025
BUSINESSicon  15/01/2022 

The Hanoi government has approved a plan to establish an additional two to five new industrial parks (IPs) in the 2021-2025 period.

What’s behind Tan Hoang Minh’s sky-high bidding price?
What’s behind Tan Hoang Minh’s sky-high bidding price?
BUSINESSicon  15/01/2022 

Tan Hoang Minh won the bid in a ‘duel’ to buy the 3-12 land plot in Thu Thiem new urban area in HCM City, but finally gave up.

Vietnamese FDI attraction likely to hit US$40 billion this year
Vietnamese FDI attraction likely to hit US$40 billion this year
BUSINESSicon  15/01/2022 

Amid rapid economic recovery following the COVID-19 pandemic, Vietnam’s foreign direct investment (FDI) attraction this year is anticipated to record positive signs and hit US$40 billion, according to insiders.

Agriculture Ministry denies that cross-border exports are low-quality products
Agriculture Ministry denies that cross-border exports are low-quality products
BUSINESSicon  15/01/2022 

Vietnam exported $3.52 billion worth of vegetables and fruits in 2021, an increase of 8.6 percent over the year before. China remains the biggest client consuming 54.5 percent of the exports.

Online shoppers warned of cunning tricks
Online shoppers warned of cunning tricks
BUSINESSicon  15/01/2022 

Along with the popularity of online shopping in Vietnam come several cunning tricks of criminals to steal money from consumers. 

Vietnam to be Asia's next startup hub
Vietnam to be Asia's next startup hub
BUSINESSicon  14/01/2022 

In an interview with Bloomberg recently, Binh Tran - co-founder of Ascend Vietnam Ventures - said that Vietnam's nascent start-up sector is developing and Vietnam is becoming the next technology hub of Southeast Asia.

Police ask for documents of 11 Hanoi-based projects of Tan Hoang Minh Group
Police ask for documents of 11 Hanoi-based projects of Tan Hoang Minh Group
BUSINESSicon  14/01/2022 

The Police Agency for Investigation of Crimes on Corruption, Economy and Smuggling (C03) of the Ministry of Public Security has asked the Hanoi People's Committee to provide documents related to projects based in Hanoi of the Tan Hoang Minh Group.

US$15 billion bailout package a stimulus to economic recovery
US$15 billion bailout package a stimulus to economic recovery
BUSINESSicon  15/01/2022 

Given the severe impact of COVID-19, the National Assembly’s recent approval of a VND350 trillion (US$15 billion) economic recovery package is considered by businesses and experts as an extremely important leverage and motivation moving forward.

HAGL sells over 48 million shares to pay debts
HAGL sells over 48 million shares to pay debts
BUSINESSicon  14/01/2022 

Hoang Anh Gia Lai Joint Stock Company will sell more than 48.1 million shares of its subsidiary HAGL Agrico (HNG) from January 17 to February 15 to pay debt.

Lang Son to stop receiving fresh fruit vehicles from Jan 17 to Tet
Lang Son to stop receiving fresh fruit vehicles from Jan 17 to Tet
BUSINESSicon  14/01/2022 

The northern province of Lang Son has announced that it would stop allowing vehicles transporting fresh fruits to its border gates for export to China from January 17 until the lunar New Year holiday or Tet.

VIETNAM BUSINESS NEWS JANUARY 14
VIETNAM BUSINESS NEWS JANUARY 14
BUSINESSicon  14/01/2022 

Cashless payments account for over 70 percent of retail transactions in 2021

Stock market sets new record on billion dollars of capital inflow
Stock market sets new record on billion dollars of capital inflow
BUSINESSicon  14/01/2022 

The Vietnamese stock market continued to reach another historic record, with the largest number of new accounts opened in December after 21 years of operation.

WB forecasts Vietnam’s growth at 5.5 percent in 2022
WB forecasts Vietnam’s growth at 5.5 percent in 2022
BUSINESSicon  14/01/2022 

The World Bank (WB) has forecast that Vietnam’s economic recovery is likely to accelerate in 2022 as GDP growth is expected to rise to 5.5 percent from 2.6 percent in the year just ended.

Vietnam reconsiders electricity sources after making international energy commitments
Vietnam reconsiders electricity sources after making international energy commitments
FEATUREicon  14/01/2022 

Vietnam’s commitments at 26th United Nations Climate Change Conference of the Parties (COP 26) will have a big impact on the country’s energy system. 

Vietnam’s economic growth forecast to rebound strongly in 2022
Vietnam’s economic growth forecast to rebound strongly in 2022
BUSINESSicon  13/01/2022 

Some foreign financial organisations have issued relatively positive predictions for Vietnam’s economy this year, with growth expected at 6.5 - 6.7 percent.

Three factors behind FDI attraction in Vietnam
Three factors behind FDI attraction in Vietnam
BUSINESSicon  13/01/2022 

Low labour costs, a geographical location close to Asian supply chains, and Japan and the Republic of Korea (RoK)'s efforts to promote greater overseas investment are considered as three factors in boosting Vietnamese foreign direct investment (FDI).

Live streaming attracts young people to earn money
Live streaming attracts young people to earn money
BUSINESSicon  13/01/2022 

Making money on online platforms and social networks is increasingly popular in the labor market, streamer jobs have become popular keywords for many young people.

Ample room for Vietnam's aviation investment
Ample room for Vietnam's aviation investment
BUSINESSicon  16/01/2022 

Private investors will have more options to invest in aviation infrastructure, which has been dominated by state-owned enterprises. 

Power Development Plan VIII under revision again
Power Development Plan VIII under revision again
BUSINESSicon  13/01/2022 

The draft Power Development Plan VIII is being revised again and expected to be submitted to the Prime Minister for approval in the first quarter of 2022.

 
 
 
Leave your comment on an article

OR QUICK LOGIN