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Banking & Finance

PM lauds Vietinbank, Vietcombank's business results

Released at: 18:23, 23/02/2018

PM lauds Vietinbank, Vietcombank's business results

PM Nguyen Xuan Phuc (r) visits Vietcombank on Feb. 21 (Photo: VGP)

PM pays visit to both banks on February 21.

by Quang Huy

Prime Minister Nguyen Xuan Phuc lauded the business performance of VietinBank and Vietcombank last year during visits to the headquarters of Vietnam’s two largest commercial banks on February 21.

He congratulated VietinBank on its successful equitization, growth in technology-based banking services, and its efforts in managing bad debts and improving management efficiency. He also noted it was a credit provider for the country’s key projects, backing the government to achieve its goals.

PM Nguyen Xuan Phuc visits VietinBank on Feb. 21 (Photo: VGP)

He asked it to improve its competitiveness by building its financial and management capacity to international standards. It should adopt solutions to improve and control credit quality, strengthen bad debt management, and continue stepping up administrative reform to provide startups and investors with easier access to loans.

VietinBank earned a total profit of VND9.2 trillion ($404 million) last year, representing 105 per cent of its annual target. Total assets rose 15.3 per cent year-on-year to more than VND1,100 trillion ($48.4 billion), making it one of Vietnam’s three largest banks in terms of assets and the country’s second-largest in terms of profit, after Vietcombank. Outstanding loans were VND839 trillion ($36.9 billion), up 18 per cent year-on-year.

The Prime Minister also met with Vietcombank staff, during which he praised its corporate culture.

The bank led in complying with government policies, he noted, adding that it is now offering the lowest lending interest rates in the market while keeping deposit rates unchanged.

By end-2017, Vietcombank’s total assets exceeded VND1,000 trillion ($44 billion) and its ratio of non-performing loans (NPLs) was down to 1.1 per cent; the lowest among domestic credit institutions. The bank is also the first in Vietnam to exceed VND10 trillion ($441 million) in profit.

He asked Vietcombank to broaden its vision to become a regional bank in Asia and to expand its size and branches to narrow the gap with major banks in the region, suggesting it develop banking technology and catch up with new technological trends, particularly in information security and safety.

The bank reported pre-tax profit of more than VND11 trillion ($482.5 million) for 2017; the highest ever for a Vietnamese bank and representing a 32.9 per cent increase against 2016 and 16 per cent higher than the annual target.

By end-2017, total deposits amounted to VND889.7 trillion ($39.1 billion), up 38.7 per cent year-on-year and 18 per cent above the target. Outstanding loans were VND553 trillion ($24.33 billion), an increase of 17.2 per cent compared to 2016.

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