Vietcombank set its pre-tax profit at VND13 trillion (US$570 million) in 2018, up 14.6 percent compared to 2017, stated the bank`s document in prepared for its annual general meeting.
Following the document, Vietcombank expected its total assets to grow 18 percent, capital mobilisation and credit growth at 15 percent, while bad debt is kept at under 1.5 percent.
For the period from 2018 to 2023, Vietcombank set plan for its assets to grow at an average 13 percent per year; credit growth at 16 percent per year; capital mobilisation at 15 percent per year; return on equity (ROE) at 15 percent; and bad debt at the maximum of 1 percent;
Notably, the State Bank of Vietnam (SBV)has approved Vietcombank’s plan for equity increase in equivalent of 10 percent its charter capital, the bank announced.
In previous meeting, the board chair Nghiem Xuan Thanh informed the Singapore’s sovereign wealth fund of government (GIC) is one of the potential buyers for this planned sale. Japanese Mizuho Bank, the largest foreign shareholder of Vietcombank with 15 percent shareholding, will be allowed to purchase additional shares to maintain its ownership ratio at the bank.
Under the bank’s restructuring plan until 2020, the bank set its total assets value to reach $60 billion, with owners’ equity of $4.5 billion.
In Vietnam, foreign ownership in state banks is capped at 30 percent. Vietcombank is among the small number of banks that have a 9.12 percent stake reserved for foreign investors, stated Saigon Securities Research.
Vietcombank’s consolidated pre-tax profit in 2017 reached VND11 trillion (US$485 million), a sharp increase of 32.9 percent over the last year and 16 percent higher than the target, making it the most profitable bank in the Vietnamese banking sector, according to the bank’s end of the year meeting on January 12 to prepare its targets for 2018.
The bank’s bad debt ratio was kept at 1.11 percent, a reduction of 0.35 percentage points compared to 2016, which is the lowest rate among Vietnam’s credit institutions. Vietcombank’s return on average assets (ROAA) and return on average equity (ROAE) were reported at 0.98 and 17.78 percent, respectively, while its net interest margin (NIM) increased by 2.47 percent.
http://www.hanoitimes.vn/economy/banking-and-finance/2018/04/81E0C527/vietcombank-targets-us-570 million-in-profit/
