Banks deliver upbeat first-half performance

July 13, 2022 | 18:57
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A raft of banks has released their second-quarter and first-half financial reports, rendering a rosy profit picture during the period, rooted in positive credit growth.
Banks deliver upbeat first-half performance
TPBank is one of the lenders eyeing upbeat profit in the first half of this year

Hanoi-based lender TPBank counted nearly $95.6 million in its second-quarter profit, up nearly $26 million equaling a 34 per cent jump on-year.

Cumulatively, as of June 30, the bank reaped $164.7 million in profit, equal to a 26 per cent jump on-year.

Its total asset value surpassed $13.47 billion, rising 28 per cent, much higher than the bank’s average credit growth during the period.

The bank’s total operating income rose 31 per cent on-year, touching $355 million, in which net profit from services soared 71 per cent on-year, reaching $51.8 million, buoyed by accelerated card issuance, account opening, bancassurance, and payment services.

The outstanding balance of the whole banking system is expected to grow an average of 4.1 per cent in the third quarter and touch 15 per cent for the entire 2022.

Nguyen Dinh Tung, CEO of Ho Chi Minh City-based OCB, unveiled that compared to its full-year profit target set at more than $304 million, the bank has almost completed its H1 profit target.

In the second quarter alone, it counted more than $43.4 million in pretax profit.

The bank’s capital business is often vibrant in the last two quarters so OCB hopes its credit limit would soon be relaxed, enabling the bank to lend to more customers, from there reaching all assigned business indexes.

Leading state lender Vietcombank reported that its five-month profit target soared about 30 per cent thanks to a strong rebound in demand deposit volume and robust credit growth.

Vietcombank is one of a few lenders having yet to raise its raising and lending rates.

Major private lender Eximbank revealed that the bank’s second-quarter pretax profit was higher compared to that in the first quarter.

Its first-quarter pretax profit reached $35.17 million, nearly tripling on-year thanks to a drop in provisioning sum.

The lender expects to reap $78.2 million in its H1 profit, up 2.7 times on-year.

The General Statistics Office’s recent report about the socioeconomic situation in Q2 and H1 shows that as of June 20, bank credit expanded by about 8.51 per cent, much higher than the 5.47 per cent credit growth in the same period in 2021.

Robust credit growth has pushed many banks to almost reach their credit growth limit as granted by the State Bank of Vietnam earlier this year.

The outstanding balance of the whole banking system is expected to grow an average of 4.1 per cent in the third quarter and touch 15 per cent for the entire 2022.

According to Asian Development Bank’s recent forecast, the local banking system’s profit would grow from 20-25 per cent compared to 2021, and credit growth is expected to reach 14-15 per cent.

Analyses of fintech FiinGroup, however, show that mounting hardships facing the real estate sector at present and in the near future would pose challenges to bank efforts in terms of debt quality and credit growth.

By Vinh Thuy

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