Vietcombank targets 12 procent profit growth
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State-owned lender Vietcombank has announced credit growth and pre-tax profit targets of 12 percent and VND25.2 trillion ($1.09 billion) for 2021.
The 12 percent credit growth target matches the target set for the banking industry as a whole, the lender said.
In 2020 Vietcombank’s profit was VND23 trillion, the same as the previous year. It also targets keeping non-performing loans at under 1 percent and achieving a net profit margin of 3.1 percent.
Last year, non-interest income accounted for 50 percent of total income, up 10.7 percentage points from 2019. Income from treasury operations and investment accounted for 21 percent.
In April 2020, Vietcombank became an exclusive bancassurance partner of FWD, the insurance arm of Hong Kong billionaire Richard Li’s investment firm Pacific Century.
Its income from bancassurance was VND1.87 trillion, or 18 percent of non-interest income.
Questions & Answers
Q.What were Vietcombank’s profits in 2020 and how does that compare to its 2021 target?
What were Vietcombank’s profits in 2020 and how does that compare to its 2021 target?
Vietcombank’s profit was VND23 trillion in 2020. The bank is targeting a pre-tax profit of VND25.2 trillion for 2021, which represents a 12 percent growth from the previous year's figure.
Q.How did income from bancassurance contribute to Vietcombank’s overall income last year?
How did income from bancassurance contribute to Vietcombank’s overall income last year?
Income from bancassurance was VND1.87 trillion last year. This amount accounted for 18 percent of Vietcombank's total non-interest income. The bank became an exclusive bancassurance partner in April 2020.
Q.What is Vietcombank’s target for non-performing loans in the coming year?
What is Vietcombank’s target for non-performing loans in the coming year?
Vietcombank aims to keep its non-performing loans at under 1 percent for 2021. This target is part of its overall financial goals for the year, alongside profit and credit growth.
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