Transactions at VPBank (Source: VPBank) Hanoi (VNS/VNA) - Major banks are still expecting to report growth in the first quarter and for the rest of 2020 despite the disruptions caused by the COVID-19 pandemic.
According to estimates from Saigon Securities Incorporation (SSI)’s research division, VIB was expected to lead in terms of pre-tax profit growth in the first quarter with a 30 percent on-year increase to surpass 1 trillion VND (43.48 million USD).
Meanwhile, with credit growth of nearly 6 percent in the first quarter and earnings from its bond investment portfolio in the first two months of this year, VPBank is expected to post double-digit profit growth in the first quarter.
SSI analysts also estimated TPBank’s pre-tax profit in the first quarter hit 1 trillion VND, up 17.3 percent year-on-year, while the figure for ACB was 1.8 trillion VND, up 5 percent on-year.
Pre-tax profit at State-owned Vietcombank was forecast to reach 6.1 trillion VND, up 3 percent on-year.
Though official numbers have yet to be published, some banks have already announced their business plans for 2020.
In an annual report released recently, SeABank set a pre-tax profit target of more than 1.5 trillion VND, up by 8.3 percent compared to the previous year. The target is fairly modest as SeABank’s pre-tax profit in 2019 increased by more than two times, reaching 1.39 trillion VND.
For MSB, with credit growth of 20 percent and mobilisation growth of 10 percent set for 2020, the bank expects a pre-tax profit of 1.44 trillion VND, up by 12 percent. MSB also targets an asset increase of 170 trillion VND, up by 8 percent, while the bad debt ratio will be held below 3 percent.
At the annual general meeting held late last month, Kienlongbank’s shareholders approved a business plan with a profit target of 750 billion VND, 8.7 times higher than 2019, and credit and mobilisation growth targets of 13 percent and 16 percent, respectively.
Kienlongbank has a history of setting breakthrough growth even when most banks expect to record a decrease in accrued interest receivables than in previous years after completing the settlement of secured collateral. The bank also has the advantage of not being required to set a provision for bad debts at the Vietnam Asset Management Company (VAMC).
However, Kienlongbank also said its plan was based on the best COVID-19 scenario, and could be adjusted if the prolonged epidemic negatively affected its business operations./.
VNA
