Banks think big despite hiccups

Military Bank (MB) - illustration photo

The Military Bank (MB) proposed an ambitious profit target of VND2.9 trillion ($140 million) for 2011 against 2010’s VND2.102 trillion ($101.5 million). Bank executives said despite current economic uncertainties such as spiraling and persistent inflation and central bank’s commitment to containing the banking sector’s outstanding loan growth of less than 20 per cent, the bank is still confident in overcoming the difficult period.

Accordingly, MB wants 20-40 per cent annual growth in diverse fields of operation in 2011, such as hiking its chartered capital from current VND7.3 trillion ($352.6 million) to over VND10 trillion ($483 million) and report a total asset value of VND155 trillion ($7.48 billion). 

It is set to raise total outstanding loan balances to VND58 trillion in 2011 from 2010’s VND50.6 trillion and keep bad debts of less than 1.9 per cent.

Bank executives, however, said MB would take a cautious approach in taking steps to ensure fulfillment of 2011 plans amid current market vulnerabilities.

Eximbank unveils its 2011 pretax profit target of VND3 trillion ($144.9 million) against 2010’s VND2.378 trillion ($114.8 million) and an estimated 14.5 per cent dividend rate.

Besides, the bank will add VND1.795 trillion ($86.7 million) more to its current chartered capital to reach VND12.355 trillion ($596.8 million) in 2011.

Techcombank sets 2011 high pretax profit target at VND4 trillion ($193.2 million) against 2010’s 2.744 trillion, a jump of 46 per cent, which will be tabled at the bank’s forthcoming annual general meeting of shareholders on April 23, 2011.

Besides, the bank set to achieve an equity-on-asset rate (ROA) of 2 per cent and an equity-on-return (ROE) rate of 25 per cent and raise its chartered capital to over VND8.788 trillion ($424.5 million) from current around VND7 trillion.

Of the additional charter capital amount, Techcombank will inject VND52 billion ($2.5 million) into upgrading material and technical bases, pour VND874 billion onto technology system innovations and add over VND929 billion to current working capital.

Techcombank seeks to create a breakthrough in development in 2011 with a view to turning itself into the top commercial bank in Vietnam, according to bank executives.

Vietcombank (VCB) proved prudent when setting its 2011 profit target at VND5.560 trillion ($268.6 million) against 2010’s $5.479 trillion and an estimated 12 per cent dividend rate which was equal to 2010’s. 

Besides, Vietcombank will hike its chartered capital to over VND24.622 trillion ($1.18 billion) in 2011 from current more than VND17.587 trillion, achieve 15 per cent growth in total asset value and report a return-on-equity (ROE) rate of 16 per cent.

According to Dr. Tran Hoang Ngan, a member of the National Financial and Monetary Policies Council, 2011’s market vulnerabilities and the government’s on-going credit tightening policies have presented great challenges to businesses from assorted economic sectors but not only banks and those having clear leadership and competitive advantages would remain steadfast and further grow.