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
Vietinbank set pre-tax profit at US$474.6 million
Ngoc Thuy 11:44, 2018/04/18
In 2018, Vietinbank set its pre-tax profit at VND10.8 trillion (US$474.6 million), up 17.3% year on year, stated the bank`s annual report.
The lender also aims for an increase of 10 - 12% for its total assets worth value, equivalent to VND1,200 trillion (US$52.7 billion). 
 
Vietinbank set pre-tax profit at US$474.6 million in 2018.
Vietinbank set pre-tax profit at US$474.6 million in 2018.
Additionally, the bank's credit growth is expected to reach 14% or VND957 trillion (US$42 million), while keeping bad debt under 2%; total capital mobilization is set for growth at 10 - 14%, equivalent to VND1,100 - 1,150 trillion (US$48.3 - 50.5 billion).
The bank plans to shift its business focus to private sector, especially in small and medium enterprises (SOEs) and retail sector. Concurrently, Vietinbank will still maintain its market shares in providing loans for state-owned enterprises, improving efficiency in serving foreign direct investment (FDI) sector.
VietinBank's consolidated pre-tax profit in 2017 reached VND9.2 trillion (US$405 million), equivalent to 105% of its annual target, making it the second largest bank in Vietnam in term of profit, after Vietcombank.
Total asset of VietinBank is reported at US$48.4 billion, an increase of 15.3% over the last year's figure, said Le Duc Tho, CEO of VietinBank at the 2017 year-end meeting and mission for 2018.
Notably, Vietnamese lender's outstanding loans reached VND839 trillion (US$37 billion), up 18% year on year, while total capital mobilization is projected at US$44 billion, up 16% compared to last year and 105% higher-than-expected plan. 
2017 also marks a change in the bank's major focus of investment toward small and medium enterprises (SMEs) instead of big corporations. Consequently, 53% of the bank's outstanding loan - VND243 trillion (US$10.6 billion) - has been allocated for SMEs. 
In addition to traditional lending activities, total fee earned from the bank's services witnessed a surge of over 20%, which is equivalent to VND4 trillion (US$175 million). Pre-tax profit generated from subsidiaries and office branches abroad totaled VND560 billion (US$24.6 million), a sharp increase of 39% compared to 2016.
As both the bank's return on equity (ROE) and return on assets (ROA) reached 12% and 1%, respectively, VietinBank has increased employee's average wage for an additional of 10%.
Currently, Bank of Tokyo-Mitsubishi UFJ is the largest strategic shareholder of VietinBank with 19.73% strategic stake, or equivalent to 734.6 million shares. Meanwhile, IFC Capitalization Equity Fund and International Finance Corporation hold 5.39% and 2.63% shares, respectively. The State Bank of Vietnam (SBV) representing the government in holding state fund of 64.46% shares of VietinBank, or 2.4 billion shares. 
Vietnam's banking sector aims to have credit growth at 17% in 2018, which was the rate achieved in 2017, according to statistics from the SBV.
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.