Vietnam Export Import Commercial Joint Stock Bank (Eximbank) has just announced its business plan for 2020.
Accordingly, the bank aims to raise total assets to 190 trillion dong, up 13 percent compared to 2019. Mobilisation from economic organisations and individuals will reach 161 trillion dong, up 15%.
Eximbank’s target loan balance in 2020 is 123.775 trillion dong, up nine percent according to the limit announced by the State Bank of Vietnam (SBV). The bank said that under favourable business conditions, it would ask for SBV’s permission to consider increasing the credit growth limit.
Target bad debt ratio is below 1.8%.
Notably, this year, Eximbank aims to achieve a profit before tax of 2.214 trillion dong, doubling the level in 2019. However, the bank also noted that this plan might be adjusted due to the impact of the Covid-19 pandemic.
Eximbank is one of a few banks to announce specific target profits in 2020 in the context of the Covid-19 pandemic. Earlier, Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has announced an expected profit of 12.5 trillion dong, an increase of 15 percent compared to 2019, but the time of announcing the targets was at the end of February when the disease was only at an early stage and its long-term consequences had not been taken into account. In a general meeting of shareholders shortly thereafter, the bank’s leader also confirmed that the above profit target was based on the assumption that the disease would end in March. The bank will submit to shareholders to adjust the profit plan depending on the situation.
Similar to BIDV, Kien Long Commercial Joint Stock Bank (Kienlongbank) also plans and organises an early general meeting of shareholders with a target profit in 2020 of 750 billion dong, 8.7 times higher than last year.
Another bank that also announced its profit target this year is Southeast Asia Commercial Joint Stock Bank (SeABank), amid the complicated development of Covid-19. The bank is expected to achieve a profit of 1.506 trillion dong, up 8.3 percent compared to 2019.
Meanwhile, Vietnam Maritime Joint Stock Commercial Bank (MSB) expects profit to grow by 12 percent in 2020 to 1.439 trillion dong.
More cautiously, Nam A Commercial Joint Stock Bank (Nam A Bank) sets a profit target of 800 billion dong for 2020, down by 13.5%.
At Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), the shareholders’ reports were missing the profit target numbers this year.
The annual reports of the largest banks such as Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Technological and Commercial Joint-Stock Bank (Techcombank), Military Commercial Joint Stock Bank (MB MBBank), and Vietnam Prosperity Joint-Stock Commercial Bank (VPBank)… do not specify their profit targets. This is understandable because the consequences of the economic recession have not been clearly planned when the disease still has many unpredictable fluctuations. Besides, the scale of credit support packages is constantly updated and therefore, the impact cannot be measured immediately.
