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Banks put high hopes on last months of year
With a lot of difficulties in 2008, the picture of banks is expected to be less bright than the one from last year. However, bankers say that the most difficult time for the banking industry is over. The operations of banks are expected to get better towards the end of the year as the State Bank of Vietnam has been gradually loosening monetary policies.
Joint-stock banks have just revealed their business results for the first nine months of the year, about a month later than usual.
The two listed banks, Sacombank and Asia Commercial Bank (ACB), also kept their profit secret, and only released the figures when they were asked to make public the information per the regulations on listed companies.
Sacombank reported VND951bil ($59.43mil) in pre-tax profit in the first three quarters. The bank expects to gain the profit of VND1,500bil ($93.75mil) this year, its adjusted target. Its initial target was VND2tril ($125mil).
Meanwhile, ACB got the profit of VND1,389bil ($86.82mil) in the first nine months of the year. Ly Xuan Hai, General Director of ACB, said that the bank has decided not to adjust the previous profit target of VND2,500bil ($156.25mil) for this year, despite the difficulties of the banking sector. ACB is the joint-stock bank which earned the most net profit in 2007, VND2tril.
Eximbank earned VND1,100bil ($68.75mil) in pre-tax profit in the first nine months of the year, an increase of 127% over the same period of last year. Of this amount, the income from credit accounted for 50%, while services brought the other 50%. The bank said that its VND1,300bil ($81.25mil) profit target proves to be within reach.
General Director of Military Bank Le Van Be said that despite a lot of difficulties, the bank has still been able to fulfill 85-90% of its yearly business plan. By October 30, the bank’s total assets had reached VND31tril ($1.93bil). The capital mobilised from institutions and individuals has increased by 20%, allowing it to ensure liquidity. However, Be still declined to reveal the bank’s profit for the first nine months of the year. Military Bank got VND450bil in the first two quarters of the year, fulfilling 61% of its yearly plan.
East Asia Bank has reported VND524bil ($32.75mil) in profit for the first three quarters, fulfilling 75% of its yearly plan.
While powerful banks have made public the figures about their profit margins, smaller joint-stock banks are being more close-lipped. General Director of Viet A Bank Pham Duy Hung said that the bank had fulfilled 60% of its yearly business plan. Hung said that the bank has to adjust its profit target for 2008, previously set at VND290bil ($18.12mil).
VNN
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