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Commercial banks do well despite economic crisis
Commercial banks have shrugged off the recession to achieve higher profits in the first quarter, thanks to an increase in demand for loans.
The Sai Gon Thuong Tin Commercial Joint Stock Bank, or Sacombank, said its pre-tax profit was VND350 billion. Its profit for the same period last year was VND435 billion.
Earnings from credit activities accounted for 65 percent of the total figure and gold and foreign currency trading was 13 percent, said general director Tran Xuan Huy.
The Dong A Bank said its pre-tax profit was 194 billion VND, or 25.8 percent of the year’s target. In the first quarter of last year, it achieved a profit of VND127 billion.
Credit operations accounted for 60 percent and the rest was from gold and currency trading and other services.
The Asia Commercial Joint Stock Bank (ACB) reported a pre-tax profit of VND450 billion in the first quarter, down 10.2 percent from last year’s period.
Many banks also reported an increase in deposits.
Sacombank brought in VND62.17 trillion in the first three months, an increase of 17 percent over the same period last year.
Its outstanding loans were down 17 percent from the end of last year to VND39.38 trillion.
Ly Xuan Hai, general director of the ACB, said that the Government’s stimulus package had created a great opportunity not only for companies but also for banks to develop.
The bank has planned a credit growth rate of 90 percent this year, double last year’s figure. It has plans to disburse trillions of dong under the stimulus programme.
Many commercial banks are targeting a higher credit growth this year by lowering interest rates, simplifying loan procedures and launching new mortgage deals.
vietnamplus, VOV
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