return icon Vietnamnet.vn

VN banks lower business targets amid COVID-19 crisis

Many banks have adjusted business plans and set lower business targets as businesses, or bank clients, have been hit hard by Covid-19.

Commercial banks have reported record high profits for many consecutive years. However, this may stop this year because of the pandemic. Lending has been growing very slowly and lower profits are anticipated.

 

{keywords}

 



GSO reported that by March 20, the total means of payment had increased by 1.55 percent only compared with the end of 2019 (it was 2.54 percent in the same period last year). The capital mobilized by credit institutions had increased by 0.51 percent (1.72 percent), while the outstanding loans had increased by 0.68 percent (1.9 percent).

The figure about credit shows that enterprises are meeting difficulties, which have forced them to scale down production and business, thus leading to sharp fall in credit demand.

Many banks said that they would have to adjust business plans. Some of them are still considering the adjustment, because the business targets will only be submitted to shareholders’ meetings in June because of Covid-19. Meanwhile, some banks have made calculations and accepted minus growth rates for this year.

Commercial banks have reported record high profits for many consecutive years. However, this may stop this year because of the pandemic. Lending has been growing very slowly and lower profits are anticipated.

Nam A Bank has revealed business targets for 2020, though the annual shareholders’ meeting has not been organized. The bank predicted that outstanding loans would increase by 21.4 percent, but the combined pre-tax profit would be VND800 billion only, a decrease of 13.47 percent compared with 2019.


The other business targets of the bank include an increase of 22.51 percent in total assets, 34.56 percent in number of credit cards issued, and low bad debt ratio of under 3 percent.

The shareholders’ meeting of the bank was initially scheduled to take place on March 28, but it has been delayed because of the epidemic.

BIDV, one of the ‘big four’, planned to obtain combined pre-tax profit of VND12.5 trillion this year if the epidemic ended in March.

A senior executive of the bank said with the current conditions, the bank would have to adjust the business plan. In the first two months of 2020, the capital mobilized by the bank decreased by 1.6 percent, while outstanding loans decreased by 2 percent.

In early March, the State Bank of Vietnam (SBV) registered to provide VND285 trillion worth of preferential loans at interest rates 0.5-1.5 percent lower than market interest rates to help businesses overcome the epidemic.

SBV’s Credit Department said the preferential credit package may become larger, depending on banks’ capabilities. Vietcombank is considering providing VND120 trillion worth of preferential loans instead of VND78 trillion as initially planned.

Thanh Lich 

 

Which bank is the champion in CASA race?

Which bank is the champion in CASA race?

The race to increase the CASA portion among commercial banks has become fierce.

Coronavirus forces banks to take cautious steps

Coronavirus forces banks to take cautious steps

Because of the complex movements of Covid-19, banks have drawn up backup plans for credit growth and bad debt management.

MORE NEWS

25 Apple ’s partners have factories set up factories in Vietnam

The number of Apple manufacturing partners setting up their factories in Vietnam has increased to 25 at present, four more than the 2020 figure, the tech giant said in its list of supply partners for the fiscal year 2021.

VIETNAM NEWS HEADLINES OCTOBER 5

Hanoi inaugurates new road tunnel to address traffic congestion

Netlflix asked to remove "Little Women" for distorting history

The request was made by the Authority of Broadcasting and Electronic Information, under the Ministry of Information and Communications, according to Deputy Director General Le Quang Tu Do.

UOB upgrades 2022 growth forecast for Vietnam to 8.2%

Given Vietnam’s strong economic recovery in the third quarter, the Singapore-based United Overseas Bank (UOB) has raised its forecast for the country’s GDP growth this year to 8.2%, from the previous prediction of 7%.

Vietnam rice prices surge on Indian rice export restrictions

Prices of Vietnamese rice surged in the global and domestic markets after India announced restrictions on broken rice exports and a 20% duty on exports of various other types.

Deaths of Adenovirus total nine, infections increase with many severe cases

The child died at the National Children's Hospital on Monday and is not thought to have any health issues but had been treated for the past 50 days and recently needed a ventilator.

VIETNAM BUSINESS NEWS OCTOBER 5

Vietnamese fleet to handle a fifth of exports by 2030: transport ministry

A day in the life of a fisherman in ​​Mong Cai

After Van Don - Mong Cai highway opened for traffic in early September, the border city of Mong Cai became a new tourist attraction.

Vietnamese navy ship arrives at Lumut port, beginning Malaysian visit

Sailing Ship 286-Le Quy Don of the Vietnam Naval Academy and a delegation of the Vietnam People’s Navy arrived at Lumut port in the Malaysian state of Perak on October 4, beginning a visit to Malaysia.

Hanoi, CNN boost tourism promotion cooperation

CNN wishes to resume tourism promotion cooperation with Hanoi, thus contributing to introducing the capital city’s cultural identity and valuable traditions to the world, Senior Vice President of CNN Robert Bradley said.

Vietnam's brand value reaches $431 billion

According to the latest report of the world's leading brand valuation consulting company - Brand Finance, Vietnam's national brand value has increased by 11 percent in 2022, from $388 billion to $431 billion.

Unblocking capital sources for the economy

After the recent increase in credit limit, the State Bank of Vietnam (SBV) has granted 13.6 percent of the total 14 percent credit room in 2022.

Share prices fall, billionaires lose big

Billionaire Tran Dinh Long’s assets have fallen by $1.6 billion this year, while billionaire Pham Nhat Vuong has lost $2 billion.

Video game helps promote Vietnamese culture, tourism

The video game “Lac Viet phieu luu ky” (Lac Viet Adventures) was selected by the Ministry of Foreign Affairs as a promotional product on digital platforms at the Vietnam Days Abroad 2022 in Austria, India, and the Republic of Korea this year.

Over 100 Vietnamese citizens deported from China for illegal stay

106 Vietnamese citizens that stayed illegally in China were returned to Vietnamese authorities at the Ly Van Border Gate in the northern province of Cao Bang on Tuesday.
back_to_top