Many banks, particularly private commercial lenders, have unveiled 2021 profit figures with an unprecedented growth despite the pandemic.
|Aside from credit activities, banks have increasingly diversified income sources to bolster profit |
The business results of many banks have been more buoyant in 2021 compared to the previous year; of whom many private lenders have reported outstanding profit figures.
Accordingly, TPBank was the first bank to lift the curtain on their 2021 pretax profit which jumped 40 per cent on-year, reaching $262.5 million, up more than 4 per cent over the projection.
According to TPBank director Nguyen Hung, in 2021, the bank made suitable revisions to diversify income sources and effectively manage customer groups with a low-risk level.
At MSB, general director Nguyen Hoang Linh shared that the bank would post $217.4 million in 2021 pretax profit, doubling 2020’s level and exceeding the target set at the bank’s general shareholders meeting held earlier.
|Banks eyeing rosy performance in 2021 despite the pandemic is attributed to sharp credit growth in the fourth quarter last year. |
In the first 10 months of 2021, MSB reaped over $200 million in pre-tax profit, showing a 40 per cent jump over the year's plan.
Meanwhile, Tran Thu Huong, retail bank director at Vietnam International Bank (VIB), disclosed that the bank’s 2021 profit is a record figure since its establishment.
Data from securities firms also shows that Q4/2021’s profit picture among other commercial lenders was upbeat.
For instance, the profit of ACB rose 26-27 per cent on-year, that of MB jumped 41-42 per cent, and that of VPBank soared 45-46 per cent, while OCB also grew 35.36 per cent on-year.
While private commercial lenders posted a sharp hike in their profits, the profit growth of state-owned banks was slowing down.
Pham Duc An, chairman at Agribank, said that the bank’s pre-tax profit was estimated at $608.7 million last year, up 6 per cent on-year.
Similarly, VietinBank has just announced surpassing 2021’s pre-tax profit target, which was set at $73.04 million, and aims to post a 10-20 per cent hike in 2022’s profit target.
In 2021, the bank slashed more than $304.3 million in profits on debt scheduling for clients and lowered its interest income and service fee to support customers.
BIDV also posted positive business results in 2021, despite reducing its income by more than $343.4 million through interest rate and fee reductions and debt scheduling to aid customers.
By December 31, all its business targets had reached the goal assigned by the State Bank of Vietnam (SBV) and the general shareholders meeting, including the profit target of $565 million for the whole year.
Leading state lender Vietcombank also reported surpassing 2021’s pre-tax profit target assigned by the SBV and the general shareholders meeting. The earnings from service fees and trade finance rose 12 per cent on-year.
Banks eyeing rosy performance in 2021 despite the pandemic is attributed to sharp credit growth in the fourth quarter last year.
According to SBV’s Deputy Governor Dao Minh Tu, by December 27, the banking sector’s credit expanded 12.97 per cent compared to the end of 2020. Within just December, the sector's credit expanded 2.8 per cent compared to November, and 4.27 per cent more than October.