CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Vietcombank targets US$570 million in profit
Nguyen Tung 16:50, 2018/04/18
Vietcombank set its pre-tax profit at VND13 trillion (US$570 million) in 2018, up 14.6% compared to 2017, stated the bank`s document in prepared for its annual general meeting.
Following the document, Vietcombank expected its total assets to grow 18%, capital mobilization and credit growth at 15%, while bad debt is kept at under 1.5%. 
 
Vietcombank targets US$570 million in profit.
Vietcombank targets US$570 million in profit.
For the period from 2018 to 2023, Vietcombank set plan for its assets to grow at an average 13% per year; credit growth at 16% per year; capital mobilization at 15% per year; return on equity (ROE) at 15%; and bad debt at the maximum of 1%; 
Notably, the State Bank of Vietnam (SBV)has approved Vietcombank's plan for equity increase in equivalent of 10% its charter capital, the bank announced. 
In previous meeting, the board chairman Nghiem Xuan Thanh informed the Singapore's sovereign wealth fund of Government (GIC) is one of the potential buyers for this planned sale. Japanese Mizuho Bank, the largest foreign shareholder of Vietcombank with 15% shareholding, will be allowed to purchase additional shares to maintain its ownership ratio at the bank. 
Under the bank's restructuring plan until 2020, the bank set its total assets value to reach US$60 billion, with owners' equity of US$4.5 billion. 
In Vietnam, foreign ownership in state banks is capped at 30%. Vietcombank is among the small number of banks that have a 9.12% stake reserved for foreign investors, stated Saigon Securities Research.
Vietcombank's consolidated pre-tax profit in 2017 reached VND11 trillion (US$485 million), a sharp increase of 32.9% over the last year and 16% higher than the target, making it the most profitable bank in the Vietnamese banking sector, according to the bank's year-end meeting on January 12 to prepare its targets for 2018.
The bank's bad debt ratio was kept at 1.11%, a reduction of 0.35 percentage points compared to 2016, which is the lowest rate among Vietnam's credit institutions. Vietcombank's return on average assets (ROAA) and return on average equity (ROAE) were reported at 0.98 and 17.78%, respectively, while its net interest margin (NIM) increased by 2.47%. 
Comments
Other news
15:51, 2025/02/24
Vietnam set to have digital banks within financial centers
Credit institutions headquartered in these financial centers will not be bound by restrictions on to foreign ownership or foreign investment conditions when providing services there or across borders.
14:30, 2025/02/15
Hanoi expands cashless parking pilot program
Hanoi is advancing its efforts to integrate technology into urban management by expanding the pilot program for cashless parking payments throughout the city.
16:58, 2025/02/11
Prime Minister urges banks to prioritize economic support over profits
One of the key priorities for the banking sector is to support small and medium-sized enterprises (SMEs), as they generate a large number of jobs and contribute significantly to the economy.
17:23, 2025/02/07
Vietnamese Gov’t forecasts CPI growth of up to 4.5% in 2025
With the goal of at least 8% GDP growth, the money supply in the economy will be significantly larger than in 2024. This will have an impact on price indices, particularly consumer prices.
17:51, 2025/01/07
Vietnam prioritizes agriculture and renewable energy for access to green loans
The move is part of the government’s effort to accelerate economic restructuring and build resilience to climate change while protecting the environment.
16:49, 2025/01/06
Vietnam GDP expands by 7.09% in 2024
The 2024 growth rate is considered positive amidst global uncertainties and domestic challenges such as natural disasters.