Bao Viet Holdings’ 3Q consolidated profit soars

November 18, 2011 | 15:50

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Bao Viet Holdings’ (BVH) consolidated pre-tax profit soared 31 per cent year-on-year within the third quarter, driven by insurance premiums.

The profit reached VND355 billion ($17.1 million) and consolidated revenue rose some 19 per cent to VND3.8 trillion ($183.6 million).

“This strong growth was primarily driven by strong premium incomes in Baoviet’s life and general insurance businesses,” said Hoang Viet Ha, chief operating officer for BVH.

Ha indicated that gross written premiums in general insurance business had risen 18.9 per cent year-on-year within the first nine months, while new premiums in the life insurance business increasing 24.2 per cent.

Revenues from the two insurance operations, including life and general insurance, stood at VND7.13 trillion ($344.4 billion). Such revenue represented 66 per cent of the group’s total consolidated revenue, a remarkably bigger portion compared with that in last year’s same period.

Net profit from the finance-insurance group’s banking operations also significantly increased to VND340 billion ($16.4 million) in the first nine months, up some 28 per cent year-on-year.

However, the consolidated profit for the first nine months still saw low growth of 2.3 per cent, despite revenue jumping 18.9 per cent. The two figures were of VND1.02 billion ($49.3 million) and VND10.84 trillion ($523.67 billion), respectively.

Financial services, which contributed nearly a quarter of the group’s revenue, still gained a small pre-tax profit of just VND220 billion ($10.6 million). The services include investment income and profit from fund management and securities businesses.

Total assets of the group by the end of September 30 were VND45.26 trillion ($2.2 billion), up 6.2 per cent compared to same period last year.