Banks with 100 percent foreign capital and joint venture banks are really drawing attention of domestic banks for their high business results, good asset quality and impressive employee incomes.
The 2018 financial statement recently published by Indovina Bank showed that the average income of the bank’s employees in 2018 reached up to 12,765 US dollars per year, equivalent to 292 million dong per year. Thus, the average monthly income of Indovina Bank’s employee was nearly 24.5 million dong.
This average income level is in the top ranking of the banking system and much higher than domestic banks’. For example, this number was only 22.26 million dong per month at Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank), 20.4 million dong per month at Asia Commerical Joint Stock Bank (ACB), 22.91 million dong per month at Vietnam International Commercial Joint Stock Bank (VIB), etc. At small-sized domestic banks, the average monthly income of employees was even less than 15 million dong, such as Saigon Commercial Joint Stock Bank for Industry and Trade (Saigonbank) and Petrolimex Group Commercial Joint Stock Bank (PGBank) with only 13 million dong, not much improved compared to last year.
Considering the average income of employees, HSBC is the first generous bank in Vietnam which pays up to 50 million dong per month to its employees. Commercial joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) with about 33.5 million dong.
Although the income of bank employees has been much improved over the years, the number of banks paying average income of more than 20 million remains modest at just around 10 banks, such as HSBC, Vietcombank, Vietnam Technological and Commercial Joint Stock Bank (Techcombank), Military Commercial Joint Stock Bank (MBBank), Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV), ACB, Indovina Bank, VIB, VietinBank, Tien Phong Commercial Joint Stock Bank (TPBank), etc.
In addition to the issue of salary and bonus, the business results of foreign banks are also making domestic banks wary.
For example, HSBC Vietnam in 2018 recorded a record high pre-tax profit of nearly 3.1 trillion dong, up by 39 percent over 2017. Indovina Bank (a joint venture between Cathay United (CUB), Taiwan and VietinBank) attained a profit of 820 billion dong, higher than the 664 billion dong recorded in 2017. The notable point is that their current asset quality is better than most domestic banks. The bad debt ratio of these two example banks are just 0.44 percent and 0.8 percent, respectively.
