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BCEL rakes in 88 billion kip profit in Q1
BCEL bank made a gross profit of 88 billion kip in the first quarter of this year, the public company's general managing director announced yesterday.
Speaking at a press conference in Vientiane yesterday, Mr Sonexay Sitphaxay said the bank generated revenue of 188 billion kip from January to March, reaching 27 percent of its annual plan, while expenditure was 100 billion kip, about 20 percent of the annual plan, resulting in a gross profit of 88 billion kip.
Gross profit for the first quarter of the year was equal to 41 percent of the annual target, a 10 percent rise on earlier expectations, Mr Sonexay said, adding that at the end of April the bank's profit had increased to 102 billion kip, accounting for 48 percent of the annual plan.
He said most of the income generated by the bank came from credit services, banking service fees, currency exchange services, and gold trade fees.
Mr Sonexay said the bank intends to distribute dividends to shareholders at the end of this year, which is expected to be at least 50 percent of total net profit.
The bank also plans to invest some of its net profit in improving and expanding its business lines next year.
Shareholders should not worry that a large portion of the bank's profits would be used for business expansion as it would help the bank to grow and lead to shareholders profiting even more.
Mr Sonexay it was not good business sense for the bank to distribute all of its net profit to shareholders as the bank would then be unable to expand and grow.
According to a report from the bank, its return on equity was 23 percent while return on assets was 2 percent in the first quarter of the year.
The total value of the bank's assets reached 11,920 billion kip at the end of the first quarter, growth of about 25 percent over the three month period since the end of 2010.
Mr Sonexay said the bank improved its administration after becoming a publicly listed company in January to facilitate its business development strategy.
The bank also held discussions with a French company on becoming a strategic business partner. He said the two companies would reach a conclusion in their negotiations in the near future.
The bank also opened a service unit in Donghen village, Savannakhet province, in the first quarter of the year.
The bank is now preparing to open service units at the Vientiane-Nong Khai Friendship Bridge, in Houn district of Oudomxay province, Thataeng district of Xekong province and Lao Ngam district in Saravan province.
The bank also began studies into the possibility of opening private and corporate banking, to provide more banking choices for both local and foreign clients.
BCEL is one of two public companies listed on the Lao Securities Exchange. The government sold 15 percent of its shares in the bank to domestic investors and 5 percent to bank staff. The government plans to sell a further 10 percent to strategic business partners.
vientiane times
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