Transactions at VPBank (Source: VPBank) Hanoi (VNS/VNA) - Major banks are still expecting to report growth inthe first quarter and for the rest of 2020 despite the disruptions caused bythe COVID-19 pandemic.
According to estimates from Saigon Securities Incorporation (SSI)’s researchdivision, VIB was expected to lead in terms of pre-tax profit growth in thefirst quarter with a 30 percent on-year increase to surpass 1 trillion VND (43.48million USD).
Meanwhile, with credit growth of nearly 6 percent in the first quarter andearnings from its bond investment portfolio in the first two months of thisyear, VPBank is expected to post double-digit profit growth in the firstquarter.
SSI analysts also estimated TPBank’s pre-tax profit in the first quarter hit 1trillion VND, up 17.3 percent year-on-year, while the figure for ACB was 1.8trillion VND, up 5 percent on-year.
Pre-tax profit at State-owned Vietcombank was forecast to reach 6.1 trillionVND, up 3 percent on-year.
Though official numbers have yet to be published, some banks have alreadyannounced their business plans for 2020.
In an annual report released recently, SeABank set a pre-tax profit target ofmore 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 bymore than two times, reaching 1.39 trillion VND.
For MSB, with credit growth of 20 percent and mobilisation growth of 10 percentset 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, whilethe bad debt ratio will be held below 3 percent.
At the annual general meeting held late last month, Kienlongbank’s shareholdersapproved a business plan with a profit target of 750 billion VND, 8.7 timeshigher than 2019, and credit and mobilisation growth targets of 13 percent and16 percent, respectively.
Kienlongbank has a history of setting breakthrough growth even when most banksexpect to record a decrease in accrued interest receivables than in previousyears after completing the settlement of secured collateral. The bank also hasthe advantage of not being required to set a provision for bad debts at theVietnam Asset Management Company (VAMC).
However, Kienlongbank also said its plan was based on the best COVID-19scenario, and could be adjusted if the prolonged epidemic negatively affectedits business operations./.
VNA
