Major banks post strong H1 results

 Vietcombank (VCB) illustration photo

TPBank reported its profits of VND263 billion ($12.3 million) in the first half of this year, coming to 60 per cent of its annual target. The total credit grew by 8.8 per cent, of which lending to businesses and individuals rose by 16.3 per cent, while deposit by individuals and organisations grew by 4.5 per cent. Its bad debt ratio was a low 1.66 per cent, down 0.3 percentage points against the beginning of the year.

TPBank is one of only a few banks recently approved to against set up new branches. Over the past six months it has opened five new locations, including two in Hanoi, two In Ho Chi Minh City and one in the southern province of Binh Duong.

Meanwhile, Vietcombank (VCB), Vietnam’s third largest joint stock bank in terms of total assets, has been assessed by Bao Viet Securities (BVS) to have made VND912 billion ($42.8 million) in net profit in the second quarter this year, up 5 per cent on year.

BVS assessed VCB’s income from lending grew by 8 per cent and it estimated the bank’s total lending rose by 3-3.5 per cent by the end of Q2. It said Vietcombank’s total deposits have gone up 7.5 per cent so far this year and its net interest margin (NIM) has also increased.

BVS said projected that for the whole year, Vietcombank’s revenue and net profits will reach VND17.317 trillion ($810 million) and VND4.439 trillion ($207 million), up 12 per cent and 2 per cent on-year.

BIDV, Vietnam’s largest joint stock bank in terms of total assets, posted pretax profits of VND2.5 trillion ($110 million) in the first five months of this year. The bank’s total deposits grew by 3.3 per cent to VND431 trillion ($20.2 billion), while the total lending went up by 2.3 per cent to reach VND396 trillion ($18.6 billion). BIDV’s bad debt ratio is under 2 per cent.

By the end of the year, BIDV plans to increase its total deposits and lending by 13 per cent, reach pretax profits of VND6 trillion ($281 million), to keep its bad debt ratio under 3 per cent, and issue a dividend of at least 9 per cent.