The State Bank of Vietnam (SBV) wants Vietinbank and Vietcombank tobecome the leading banks of Vietnam, and boost their scale at theregional level.
SBV Governor Nguyen Van Binh made theannouncement at a Vietinbank meeting last week, adding that this is partof a restructuring scheme for the domestic banking system. "This is adifficult task," he told the local press.
Binh said the centralbank needs Vietinbank to actively take part in the general process ofhandling weak lenders, by providing assistance related to humanresources, management experience and prestige.
He specified thatthe industry and trade bank can combine efforts by merging with asmaller bank, and any merger will not financially hurt it, but willpromptly help it expand its network.
The governor expressed asimilar viewpoint during a Vietcombank meeting a week earlier, when heconfirmed that the foreign trade lender is set to merge with Saigonbankas part of a systematic reform process.
Vietinbank GeneralDirector Le Duc Tho said the bank will follow SBV's policies. “This isan opportunity for the market, as well as a necessary condition forreorganising and enhancing the overall management capacity of thebanking system…We are likely to face many issues that the system isrequired to deal with."
With regards to marketspeculations that Vietinbank will merge with PGBank, he said relatedissues are being processed and information will be publicised at asuitable time. Unless Vietinbank makes an official announcement aboutthis, everything will just be considered a rumour, he noted.
Tho said Vietinbank fulfilled its pre-tax profit target of 7.3trillion VND (347.62 million USD) last year, with asset values totalling660 trillion VND (31.43 billion USD) on December 31, up 14.6 percentfrom the previous year.
In 2014, its totaloutstanding loans touched 544 trillion VND (25.90 billion USD),reflecting a year-on-year jump of 18.2 percent, with bad debtsrepresenting 0.89 percent of the amount. The total deposits were peggedat 596 trillion VND (28.38 billion USD), rising 16.4 percent, from ayear ago.
The bank aims to maintain last year's profit growththis year as well and expects its total assets to increase by at least15 percent. It has projected deposit and loan growth at 13 to 15percent, with the non-performing loan ratio expected to be less than 3percent.
Vietcombank Chairman Nghiem Xuan Thanh reported that thebank earned 5.68 trillion VND (270.48 million USD) in pre-tax profitslast year, up 2 percent from the previous year.
In 2014,deposits at the bank grew by nearly 26 percent and outstanding loansexpanded by nearly 18 percent year-on-year, while the bad debt ratiofalling by 0.4 percent year-on-year to 2.29 percent.
SBVofficials said about six merger and acquisition (M&A) deals willtake place this year and mentioned the possible adoption of strongmeasures, such as dissolutions, bankruptcies and compulsory M&As forreinvigorating the banking system's health.-VNA
SBV Governor Nguyen Van Binh made theannouncement at a Vietinbank meeting last week, adding that this is partof a restructuring scheme for the domestic banking system. "This is adifficult task," he told the local press.
Binh said the centralbank needs Vietinbank to actively take part in the general process ofhandling weak lenders, by providing assistance related to humanresources, management experience and prestige.
He specified thatthe industry and trade bank can combine efforts by merging with asmaller bank, and any merger will not financially hurt it, but willpromptly help it expand its network.
The governor expressed asimilar viewpoint during a Vietcombank meeting a week earlier, when heconfirmed that the foreign trade lender is set to merge with Saigonbankas part of a systematic reform process.
Vietinbank GeneralDirector Le Duc Tho said the bank will follow SBV's policies. “This isan opportunity for the market, as well as a necessary condition forreorganising and enhancing the overall management capacity of thebanking system…We are likely to face many issues that the system isrequired to deal with."
With regards to marketspeculations that Vietinbank will merge with PGBank, he said relatedissues are being processed and information will be publicised at asuitable time. Unless Vietinbank makes an official announcement aboutthis, everything will just be considered a rumour, he noted.
Tho said Vietinbank fulfilled its pre-tax profit target of 7.3trillion VND (347.62 million USD) last year, with asset values totalling660 trillion VND (31.43 billion USD) on December 31, up 14.6 percentfrom the previous year.
In 2014, its totaloutstanding loans touched 544 trillion VND (25.90 billion USD),reflecting a year-on-year jump of 18.2 percent, with bad debtsrepresenting 0.89 percent of the amount. The total deposits were peggedat 596 trillion VND (28.38 billion USD), rising 16.4 percent, from ayear ago.
The bank aims to maintain last year's profit growththis year as well and expects its total assets to increase by at least15 percent. It has projected deposit and loan growth at 13 to 15percent, with the non-performing loan ratio expected to be less than 3percent.
Vietcombank Chairman Nghiem Xuan Thanh reported that thebank earned 5.68 trillion VND (270.48 million USD) in pre-tax profitslast year, up 2 percent from the previous year.
In 2014,deposits at the bank grew by nearly 26 percent and outstanding loansexpanded by nearly 18 percent year-on-year, while the bad debt ratiofalling by 0.4 percent year-on-year to 2.29 percent.
SBVofficials said about six merger and acquisition (M&A) deals willtake place this year and mentioned the possible adoption of strongmeasures, such as dissolutions, bankruptcies and compulsory M&As forreinvigorating the banking system's health.-VNA
