On March 29, some commercial banks conducted 2018 annual general meeting (AGM). Estimated profit results of the first quarter were reported to shareholders.
Vietnam International Bank (VIB) is creating strong impression when the profit in Q1/2018 was estimated to triple compared to the same period last year.
At the AGM on March 29, Chair of the Board Dang Khac Vy said in the first quarter of this year, VIB’s profit was estimated to reach 500 billion dong the first step for the whole year profit target of 2.005 trillion dong. Meanwhile, the actual ambition can be 2.3-2.5 trillion dong.
With the above mentioned information, VIB is the next case to set this year’s profit growth rate at high level, about more than 60 percent. Earlier, many other members such as Techcombank, HDBank, VPBank, MB, etc. also identified this growth target at high level in 2018.
On March 29, the Military Bank (MB) also conducted the AGM, in which, the profit of the first quarter was also estimated.
Luu Trung Thai, CEO of MB said in Q1/2018, MB is estimated to reach the turnover of about 3.5-3.6 trillion dong, minimum pre-tax profit of 1.6 trillion dong, growing about more than 44 percent year-on-year.
In 2018, MB set profit growth target of 47 percent, equal to about 6.8 trillion dong. Earlier, Thai said this is a safe and reliable indicator. MB can create unexpected profit results, but the bank chooses more reasonable and sustainable growth rate.
One day before VIB and MB’s AGM, LienVietPostBank organised 2018 annual general meeting (AGM). According to information from this meeting, in the first quarter of this year, LienVietPostBank is estimated to reach more than 500 billion dong profit, completing 28 percent of the whole year plan, and growing more than 6.5 percent from the same period last year.
Hochiminh City Development Bank (HDBank) which attained unexpected profit growth in 2017 is continuing to show when the average profit in the beginning months of this year reached about 350 billion dong. Cumulatively, the accumulated profit in Q1/2018 touched about 1.050 trillion dong. And, according to information discussed with investors in 2017, HDBank plans to fix the dividend rate amounting to 30 percent to submit to the AGM on April 21.
Among banks that initially determined profit results in Q1/2018, there is a very noticeable result in VIB, i.e. the credit growth reached 13 percent while the growth rate target assigned by the State Bank was just 14 percent.
In this year, the State Bank assigned credit growth target to members at rather low level, in order to control the overall rate of the industry as well as the system safety. However, in the operation process, in fact, members will submit and this agency will consider loosening criteria based on conditions of each member.
As in 2017, for the first time in VIB or MB, the profit was recorded and had large contribution from the promotion of retail segment. This is also the general profit growing trend of the system in this year, continuing to grow in the segment having higher profit margin compared to traditional lending.
Another noticeable point, according to the recently released data by the general Statistical Office (GSO), the insurance market in Vietnam continues to have strong growth rate in Q1/2018, a channel that brings about large revenue to many commercial banks in 2017 as well as in 2018.
Specifically, insurance revenue of the entire market in Q1/2018 was estimated to increase 19 percent from the same period of 2017, in which, life insurance premium revenue swelled 28 percent, and the non-life insurance premium revenue improved nine percent.
In related news, at the AGM, VIB said the bank quickly signed contract with Prudential after growing 100 percent in 2016 and 2017. And, at the end of March, the revenue reached an equivalent of more than 30 percent of committed target in the year.
In this bancassurance channel, many commercial banks have owned long-term strategic partnerships with large insurance companies, as well as have clearly shown the service revenue growth last year such as Techcombank, SHB, Sacombank, VIB, Vietinbank, etc.
