VnnNews – Despite challenges, most commercial banks have reported satisfactory profits for the first three quarters of the year.
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An Binh bank has reported profits of 281 billion dong ($16.52 million) in the first nine months of the year |
Earlier this year, as economists warned about difficulties facing the national economy, Maritime Bank dared to set just a modest profit target of 600 billion dong ($35.29 million). However, the bank’s performance has seen it exceed the yearly plan by 10 percent after only eight months of the year. It reported pretax profits of 700 billion dong ($41.17 million) by the end of September 2009.
Commenting on profits from commercial banks to date economists are saying that while they represent satisfactory business, in reality the figures are not so high for banks of their size.
An official of Maritime Bank admitted profits of 700 billion dong ($41.17 million) for the first quarters of the year is not really high, especially compared to chartered capital of 2,240 billion dong ($131.76 million) and total assets of 48 trillion dong ($2.82 billion). He said that with such big chartered capital and total assets, the ROE (return on equity) and ROA (return on assets) of the bank would be lower than enterprises in other business fields.
As the national economy rapidly recovers, a lot of businesses are seeing the ROE at over 20 percent and have exceeded the yearly business plan.
General Director of the Vietnam Foreign Trade Bank (Vietcombank) Nguyen Phuoc Thanh also said that while several hundreds or several trillions of dong seem to be big figures they remain small compared to their total assets of some tens of trillions dong.
“Only several banks have regained high growth rates, while most of banks still have got modest profit if compared to enterprises in other business fields,” he said.
Vietcombank has not revealed profits for the first nine months of the year, but Thanh says it will be higher than the targeted level of 3,400 billion dong. However, even when the yearly plan is fulfilled, Vietcombank’s ROE would remain modest at some 20 percent.
Earlier this year, many banks set the targeted ROE at 20 percent. For example, Eximbank planned to obtain 1,500 billion dong ($88.23 million) in pretax profit, while it has the total chartered capital of 8,800 billion dong ($517.64 million). Sacombank planned to get 1,600 billion dong ($94.11 million) in pretax profit with the chartered capital of 5,100 billion dong ($300 million).
VietNamNet/DTCK
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