|
Habubank says pretax profit growth slows
Hanoi Building Commercial Joint-Stock Bank, known as Habubank, said pretax profit rose at a slower pace in the first half of 2008 as higher deposit rates eroded margins.
Profit before tax increased 5 percent to VND249 billion (US$15 million) in the six months ended June 30, from VND237 billion a year earlier, the bank said in an e-mailed statement late Tuesday.
The growth was slower than in previous years, according to Chief Executive Officer Bui Thi Mai.
“Earnings grew slower than in previous years since our profit margin in lending was smaller,” Mai said in a telephone interview.
“We raised interest rates for depositors to get more money for loans, while lending interest rates were capped by the central bank.”
The State Bank of Vietnam has raised the benchmark interest rate three times this year – to 14 percent from 8.25 percent in 2007 – in an attempt to cool inflation.
The central bank told lenders to cap their lending rates at 21 percent.
Hanoi-based Habubank said outstanding loans surged to VND11.5 trillion ($686 million) in the first six months this year, from VND7.1 trillion a year earlier.
Deposits totaled VND12.3 trillion this year.
Thanhnien
|
