Vietnam’s banking sector experiences prosperous year hinh anh 1Customers and staff at an An Binh Bank (ABBank) branch in Thai Binh province (Photo: VNA)
Hanoi (VNA)  — Profits of many commercial banks this year will hit the highest levels since 2012 thanks to rising capital demand, experts have forecast.

Financial reports from banks showed that although two months still remain until the end of the year, many banks have already met profit targets set for the whole of 2017.

According to the Orient Commercial Bank (OCB), it completed its whole year profit plan within the first nine months, with pre-tax profit of 789 billion VND (34.75 million USD) and completion rate of 101 percent.

As of September 30, 2017, OCB had total assets of 70.87 trillion VND, accomplishing 83 percent of the year’s plan. Total mobilisation was nearly 56.34 trillion VND, achieving 85 percent of the plan; outstanding loans were 46.84 trillion VND, fulfilling 99 percent of the plan; and non-performing loan (NPL) ratio was controlled at less than 2 percent.

Tien Phong Commercial Joint Stock Bank (TPBank) also announced its financial statement for the first three quarters of 2017, with nine-month accumulated pre-tax profit of 807 billion VND, exceeding the whole year’s plan of 780 billion VND.

As of September 30, 2017, TPBank’s total assets were 114.5 trillion VND, up 28 percent year-on-year; outstanding loans were over 67 trillion VND, equal to 97.8 percent of the year’s plan and growing nearly 20 percent; capital mobilisation improved nearly 21 percent from the beginning of the year, hitting nearly 95 percent of the year plan; and NPL ratio was less than 0.8 percent.

An Binh Bank (ABBank) also posted its business results and became the next bank to earn profit matching the whole year’s target in just nine months.

Specifically, in January-September 2017, ABBank attained pre-tax profit of 429 billion VND, up 122 percent year-on-year, and completed 132 percent of the nine-month plan, equal to 95 percent of 2017’s target.

Prior to the above mentioned banks, the market also saw an unexpected profit increase for HCM City Development Bank (HDBank), which exceeded the whole year’s plan in just nine months.

LienVietPostBank came close to achieving its profit target for the whole year.

The announced business results made it clear that the year 2017 is unique as for the first time since the Government applied an economic stimulus package in 2009-12, Vietnamese commercial banks have witnessed such rapid progress in profit generation.

Experts attributed banks’ high profits to rising capital demand. According to statistics from the State Bank of Vietnam, credit growth in the first nine months of this year rose 11.02 percent against December last year. The increase was much higher than the rates of 10.78 percent and 10.46 percent in the same period in 2015 and 2016. -VNA