return icon

VN banks believe 2018 profit target within reach

VietNamNet Bridge - The credit growth rate this year is lower than 2017, but banks’ profit is predicted to be 20-25 percent higher.
VietNamNet Bridge - The credit growth rate this year is lower than 2017, but banks’ profit is predicted to be 20-25 percent higher.


Some bankers have revealed they have nearly fulfilled the 2018 business plan, saying high profits are foreseeable. Though the State Bank has not lifted the credit growth rate ceiling, banks still have a prosperous year thanks to increased revenue from non-credit services and bancassurance. 

The CEO of a large bank with charter capital of over VND5 trillion said the bank’s pre-tax profit had reached VND1.8 trillion by the end of September, very close to the profit target of VND2 trillion set earlier this year.

Can Van Luc, a renowned banking expert, believes that the profit of the banking system this year will be satisfactory, and is expected to increase by 20-25 percent.

The credit growth rate this year is lower than 2017, but banks’ profit is predicted to be 20-25 percent higher.

The HCMC Securities Company (HSC) commented that 2018 is a ‘year of special growth’ for the banking sector. The State Bank’s credit tightening policy has had an impact on banks’ performance, but it was insignificant.

The pre-tax profit of listed banks is forecast to grow by 45.2 percent in 2018, higher than the 30 percent projected previously.

The credit growth rates of some commercial banks are lower than planned, thus affecting their profit, but the NIM (net interest margin) and non-interest income are higher. Non-credit services are expected to bring trillions of dong worth of revenue to Vietcombank, VP Bank and Techcombank.

Besides the revenue from interest and services, banks will also have irregular earnings from divestment deals. They will have to withdraw capital they contributed to other credit institutions to clear cross-ownership status as per the instruction of the State Bank.

Vietcombank, for example, is expected to collect trillions of dong from the divestment from Eximbank and Military Bank. Prior to that, the bank got hundreds of trillion of dong from the divestment from Saigonbank, Cement Finance Company and OCB, while Eximbank collected VND700 billion from selling Sacombank shares.

Vietcombank’s 9-month pre-tax profit far exceeded the profit of the entire year 2017, estimated at VND11 trillion. 

Meanwhile, Bao Viet Securities (BVSC) predicted that post-tax profit of Techcombank may reach VND8.243 trillion, higher than the targeted VND8 trillion. The bank is leading the bancassurance sector with 25 percent of market share, leaving other banks far behind.

StoxPlus reported that the banking sector gained a net profit of $1.53 billion in the first half of the year, or 64 percent of income of the previous years. The prosperity of the banking sector has helped make bank share prices bounce back. As of September, the bank share prices had increased by 22 percent since the beginning of the year.

However, bank CARs have not improved significantly. Only six out of 14 banks increased their charter capital by $613 million.



Nearly all banks make a profit in first quarter

VN banks report rosy first-half profit picture

Thanh Lich


Vietnam demands Taiwan to cancel illegal drills in Truong Sa’s waters

Vietnam resolutely opposes and demands Taiwan (China) to cancel its live-fire exercises in the waters around Ba Binh island that belongs to Vietnam's Truong Sa (Spratly), Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang stated on December 2.

Make-in-Vietnam cameras have high security, satisfy standards

Make in Vietnam camera manufacturers are enhancing security capability and satisfying requirements on information security set by the Ministry of Information and Communications (MIC) for devices such as cameras and Internet of Things (IoT).

Government plans to rearrange state-owned enterprises till 2025

Deputy Prime Minister Le Minh Khai has signed a decision approving a plan of rearrangement of state-owned enterprises for the period of 2022-2025 in the form of one-member limited company, equitization, re-arrangement and divestment.

Transport Ministry urges new ship channel for large vessels in Mekong Delta

The Ministry of Transport has urged Tra Vinh Province to implement compensation payment for site clearance and resettlement support to build a new ship channel for large vessels in the Hau River.

Toan retains WBA Asia belt against Amparo in Bangkok

Le Huu Toan successfully defended his World Boxing Association (WBA) Asia minimum-weight (48kg) belt during The Challenger event on November 30 in Bangkok, Thailand.

Billions of dollars from foreigners invested in Vietnam’s enterprises

Foreign capital keeps flowing into Vietnam through many different channels, helping investors regain their confidence in the stock market and the economy.

Urban areas, parks to be built on Red River alluvium grounds

Hanoi authorities plan to build new urban areas and eco-friendly housing, and develop open space with parks, urban squares and flood parks on thousands of hectares on the alluvium grounds of the Red River area.

Target of 1 million social housing units difficult to reach

The goal of developing 1 million social housing units may not be feasible.

Ministry to control rice import management

The Ministry of Industry and Trade (MOIT) fears the high level of rice imports and the failure to control imports will affect domestic production.

Gambling soars during World Cup

Football betting is taking place in the open air at venues where people gather to watch World Cup matches, or quietly online.

Michelin Guide to announce first Vietnamese restaurant selections

Hanoi and Ho Chi Minh City have been selected by Michelin as the latest destinations joining the international selection, as compiled by the Michelin Guide.

Ministry to crack down on Internet ads violations

The Ministry of Information and Communications held a conference in Hanoi on November 30 to roll out Internet advertising management measures.

Seven-day Tet holiday fixed for State employees

Officials, civil servants, public employees and workers of State administrative and socio-political organisations will enjoy a seven-day Lunar New Year (Tet) and four-day National Day holidays next year.

Vietnam has opportunity for energy transition towards green growth

Vietnam boasts substantial potential for wind power, particularly offshore wind power, providing an opportunity for the country to fulfill its energy transition target towards green growth.

PM requests combined efforts to combat IUU fishing

Prime Minister Pham Minh Chinh called for concerted efforts to fight illegal, unreported and unregulated (IUU) fishing while chairing a teleconference with 28 coastal provinces and cities on December 1.