Employees of some banks, such as Vietnam Technological and Commercial Joint Stock Bank (Techcombank) and Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) are leading in performance earning in an average of more than one billion dong of pre-tax profit last year.
Business performance per employee of banks, although not fully reflects, but partly shows the current status of each bank in the system.
Based on the 2018 financial reports, leading the list of operational efficiency are employees of Techcombank. Specifically, by the end of 2018, the bank, in consolidation, had 9,757 employees, an increase of 1,429 employees, of which the employees of the parent bank were 9,210, an increase of 1,399 employees.
Total consolidated revenue of this bank last year reached 18.346 trillion dong and profit was 10.6 trillion dong. Accordingly, it is estimated that each employee of Techcombank generates over 1.88 trillion dong in revenue and 1.09 trillion dong in profit before tax.
Ranking second is the performance of employees of Vietcombank. Based on the fourth quarter of 2018 financial statements of Vietcombank, this bank has a pre-tax profit of 18.3 trillion dong, highest among the banking system.
However, due to the large staff size, up to 17,216 persons. Accordingly, it is estimated that each Vietcombank employee generated over 1.06 billion dong in profit before tax; improved quite a lot compared to the previous year but still lower than that of Techcombank.
Meanwhile, with the other three “big banks”, since this year their profits were lower than some private banks, plus the number of employees were increased, the average performance of each good employee were quite low.
Specifically, in 2018, Vietnam Joint Stock Commercial Bank of Industry and Trade (Vietinbank) achieved consolidated pre-tax profit of only 6.8 trillion dong, nearly 2.5 trillion dong lower than in the previous year, while the total number of employees by the end of 2018 was 24,197 staff, an increase of 413 staff. Accordingly, on average each employee in 2018 only generated 281 million dong.
With Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), the consolidated profit before tax was nearly 9.5 trillion dong, 800 billion dong higher than in the previous year, but still “surpassed” by Techcombank. On the other hand, the size of employees was quite large, so it is estimated that each employee of BIDV in 2018 only generated more than 373 million dong of profit for the bank.
Another joint-stock bank achieved a high profit in the past year is VPBank with pre-tax profit of nearly 9.2 trillion dong. Also due to the combined staff size of 27,429 (of which FE Credit and its subsidiaries account for nearly 16,000 staff), it is estimated that each employee of this bank only generates 335 million dong of profit before tax. If calculated according to individual reports, on average each VPBank employee earns nearly 700 million dong for the bank in 2018.
With Asia Commercial Joint Stock Bank (ACB), after a period of restructuring due to the impact of the “Boss Kien” case, in 2018, the bank recorded a “huge” profit of nearly 6.4 trillion dong, so on average, and each employee generated more than 580 million dong for the bank.
Other banks also recorded an increase in employee performance last year when banks’ performances gradually return to their heyday and show huge profits in financial statements.
A Vietcombank leader once shared, to get the “sweetness” of today, for many years, the bank’s management has drastically restructured and reorganised the personnel system for effective operation. The bank has also built Key Performance Indices (KPIs) for each individual, thereby enabling each person to have the opportunity to develop their full capacity.
