VietinBank reports record profit
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VietinBank, Vietnam’s third largest lender by assets, has reported a 40 percent increase in standalone profits in 2020 to VND16.5 trillion ($715 million).
This is its highest ever profit, and chairman Le Duc Tho, speaking at a meeting on Wednesday, attributed it to a surge in non-interest income and reduction in operation costs.
While it has not published its financial statement for the year, the bank said in a press release that consolidated debts rose by 7.7 percent and non-performing loans were less than 1 percent.
Its non-interest income jumped 35 percent, lifting it as a ratio of total income from 16.5 percent in 2019 to 20 percent.
Income from services, foreign exchange trading and treasury operations increased by 12 percent, 24 percent and 70 percent.
The bank targets 8-11 percent credit growth in 2021 and 10-20 percent growth in standalone profit and consolidated profit, and keeping non-performing loans to under 2 percent.
Questions & Answers
Q.What were the primary reasons for VietinBank achieving its highest ever profit in 2020?
What were the primary reasons for VietinBank achieving its highest ever profit in 2020?
Chairman Le Duc Tho stated that the record profit was due to a significant rise in non-interest income and a reduction in operational costs. These factors combined to boost the bank's financial performance substantially.
Q.How did VietinBank's non-interest income contribute to its overall financial results in 2020?
How did VietinBank's non-interest income contribute to its overall financial results in 2020?
Non-interest income jumped by 35 percent in 2020. This increased its share of total income from 16.5 percent in 2019 to 20 percent, indicating a growing importance to the bank's revenue.
Q.What are VietinBank's key financial targets for the year 2021?
What are VietinBank's key financial targets for the year 2021?
For 2021, VietinBank aims for 8-11 percent credit growth and 10-20 percent growth in standalone and consolidated profit. It also intends to maintain non-performing loans at under 2 percent.
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