VietinBank profits surge 83 pct
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VietinBank, Vietnam’s third largest bank by asset, has reported an 83 percent increase in pre-tax profits to almost VND11.5 trillion ($495 million) in 2019.
Its chairman, Le Duc Tho, said at a forum on Tuesday that assets rose 6.5 percent to VND1,240 trillion ($53.29 billion). Its bad debts ratio was under 1.2 percent, down from 1.59 percent in 2018.
Credit growth during the year was 7.2 percent.
The bank targets 6-8 percent growth in assets this year, 8-10 percent credit growth and an increase in pre-tax profits of 10 percent. It seeks to keep bad debts under 2 percent.
Le Minh Hung, Governor of State Bank of Vietnam, said the government has approved capitalizing of VietinBank’s 2017 and 2018 profits.
The lender has been seeking to increase its charter capital in the last few years, but Tho said profits would only meet a third of the increase it plans and needs government approval to hike its capital through other means.
Vietinbank, in which the government owns 65 percent, has not increased its capital of VND37.23 trillion ($1.62 billion) since 2014.
Questions & Answers
Q.What was VietinBank's pre-tax profit in 2019?
What was VietinBank's pre-tax profit in 2019?
VietinBank reported pre-tax profits of almost VND11.5 trillion, which is approximately $495 million. This figure represents an 83 percent increase compared to the previous year, highlighting significant financial growth for the institution.
Q.What was the bank's bad debt ratio at the end of 2019?
What was the bank's bad debt ratio at the end of 2019?
The bank's bad debts ratio was under 1.2 percent in 2019. This marks an improvement from the 1.59 percent recorded in 2018, indicating better management of non-performing loans over the year.
Q.What are VietinBank's key financial targets for the current year?
What are VietinBank's key financial targets for the current year?
VietinBank aims for 6-8 percent asset growth, 8-10 percent credit growth, and a 10 percent increase in pre-tax profits this year. The bank also seeks to maintain its bad debts ratio below 2 percent, showing a focus on controlled expansion.
Q.Why is VietinBank seeking to increase its charter capital?
Why is VietinBank seeking to increase its charter capital?
The bank has been seeking to increase its charter capital for several years, but its profits would only cover a third of the planned increase. It needs government approval to raise capital through other means, as its capital has not changed since 2014.