VietinBank sees over 710 mln USD in pre-tax profit last year hinh anh 1VietinBank Chairman Le Duc Tho speaks at the January 6 conference reviewing the bank's performance last year and launching tasks for 2021 (Photo: VNA)

Hanoi (VNA) – The Vietnam Joint Stock Commerical Bank for Industry and Trade (VietinBank) reported pre-tax profit of 16.45 trillion VND (712.4 million USD) and a bad debt ratio of under 1 percent for 2020.

VietinBank Chairman Le Duc Tho told a meeting on January 6 that the profit fell by nearly 5 trillion VND as a result of lending interest, fee, and profit cuts to assist businesses and people affected by the COVID-19 pandemic.

He said last year, the bank made efforts to reform every operation aspect, switch from the quantity-based growth model to the quality-based one that focuses on improving service quality, increase non-profit revenue, and optimise capital and operating expenditure. The proportion of highly profitable segments like retail and lending to small- and medium-sized enterprises also rose.

It fulfilled targets set in the restructuring and bad debt settlement plan for 2016-2020, met capital requirements under Basel II, and officially applied the State Bank of Vietnam’s Circular 41/2016/TT-NHNN that regulates the capital adequacy ratio for banks and foreign banks’ branches from the beginning of 2021.

Tho also highlighted the bank’s support for anti-pandemic efforts and disaster-hit localities last year.

For 2021, VietinBank targets growth of about 3 - 6 percent in total asset, 8 - 11 percent in credit, 10 - 12 percent in mobilised capital, and 10 - 20 percent in pre-tax and consolidated profit. It also looks to keep the bad debt ratio at below 2 percent./.