ANZ Vietnam reports 75 pct fall in profit in H1
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ANZ Vietnam’s profits fell 75 percent in the first half of this year following the sale of its retail arm to Shinhan Bank.
The bank’s financial report shows its after-tax profits were VND41 billion ($1.76 million), down from VND171 billion ($7.33 million) in the same period last year.
Net interest income and net income from its foreign exchange business saw the biggest declines: 40 percent and 15 percent.
ANZ Vietnam was one of the few lenders in the country to report negative credit growth, with loans outstanding edging down to VND12.6 trillion ($540 million) at the end of the second quarter.
In the first half return on equity was only 25 percent of the rate a year earlier.
But the poor performance notwithstanding, at the end of the first half its assets increased by 16 percent against the beginning of the year as deposits with the State Bank of Vietnam went up by VND320 billion ($13.72 million) and deposits with and loans to other credit institutions increased by VND4.15 trillion ($178 million).
South Korea’s Shinhan Bank last year acquired ANZ’s retail business in Vietnam. The latter had around 125,000 individual customers, more than $231 million in loans outstanding and more than $578 million in deposits.
According to the General Department of Taxation, the bank was the 156th biggest taxpayer in the country last year.
Questions & Answers
Q.What is the primary reason for ANZ Vietnam's significant fall in profits this half?
What is the primary reason for ANZ Vietnam's significant fall in profits this half?
The main reason for the 75 percent fall in profits was the sale of its retail arm to Shinhan Bank. This transaction was completed last year, impacting the bank's financial results for the current period.
Q.Which specific financial areas experienced the largest declines for ANZ Vietnam?
Which specific financial areas experienced the largest declines for ANZ Vietnam?
Net interest income saw a 40 percent decline, which was the biggest drop reported. Net income from its foreign exchange business also declined significantly, by 15 percent, contributing to the overall profit fall.
Q.Despite the poor profit performance, did ANZ Vietnam's overall assets grow or shrink?
Despite the poor profit performance, did ANZ Vietnam's overall assets grow or shrink?
ANZ Vietnam's assets actually increased by 16 percent against the beginning of the year. This growth was driven by increased deposits with the State Bank of Vietnam and other credit institutions.
Q.How large was the retail business that Shinhan Bank acquired from ANZ Vietnam?
How large was the retail business that Shinhan Bank acquired from ANZ Vietnam?
The acquired retail business had approximately 125,000 individual customers. It also included more than $231 million in outstanding loans and over $578 million in customer deposits at the time of the sale.
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