Vietnam Bank for Agriculture and Rural Development (Agribank) had just announced preliminary business results for the first 11 months of 2019.
Accordingly, as of November 30, 2019, the bank’s total assets reached over 1.4 quadrillion dong, of which balance for the economy reached nearly 1.1 quadrillion dong.
Besides, Agribank’s service fee revenue continued to have good results when reaching nearly 6 trillion dong.
Agribank’s profit before tax in the first 11 months reached more than 11.7 trillion dong. Thus, in 2019, the Vietnamese commercial banking system had more members that exceeded the 10 trillion dong profit before tax. The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) was the first member to exceed this milestone far beyond the first nine months with 17.61 trillion dong.
Along with the above business results, Agribank said that 2019 was considered to be a year in which the bank prepared to equitise under the direction of the prime minister. Also, in 2019, Agribank determined to continue focusing on the implementation phase two structure.
Currently, among four banks with the state capital, only Agribank and Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) had not yet reached Basel II standards.
In a recent report to the National Assembly, Governor of the State Bank of Vietnam (SBV) Le Minh Hung said that SBV was actively coordinating with the Ministry of Finance to handle capital raising issues for state-owned commercial banks as direction of the prime minister to strengthen the financial capacity of state-owned commercial banks, ensure the compliance with the regulations on the security ratio, to meet the Basel II capital adequacy ratio (the standard method), including Agribank.
Along with that, SBV also focused on directing Agribank and related units to research and solve difficulties and obstacles, especially on legal regulations, to accelerate the equitisation process of Agribank.
The Governor also said that SBV had submitted a report to the prime minister to report and propose specific financial handling related to the equitisation of this bank.
