Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) has announced the consolidated financial statement in the first quarter (Q1) of 2019 with pre-tax profit of 3.152 trillion dong, up by 4.1 percent over the same period of last year.
The most encouraging point of VietinBank in Q1 is the increase of 19 percent in net profit (reaching 6.394 trillion dong) although the bank’s oustanding credit decreased by 0.34 percent. The fairly strong net profit rise created favourable condition for VietinBank to increase provisions for credit risks to 3.241 trillion dong, nearly 40 percent higher than Q1 2018, in order to lower the pressure from bad debts.
This achievement comes from different business lines. The credit segment brought 7.949 trillion dong of net interest income to VietinBank in Q1, up by 9.9 percent. Meanwhile, the service segment contributed 969 billion dong to the bank’s net profit, up by 64 percent; and the foreign exchange segment contributed 414 billion dong, up by 78 percent.
On the contrary, the segment of securities trading recorded 131 billion dong of net profit, down by 45 percent; and trading of investment securities suffered a net loss of 83 billion dong, while it recorded a net profit of nearly 80 billion dong. Other activities contributed 149 billion dong to VietinBank’s net profit, down by 58 percent.
Closing Q1 2019, after deducting operating expenses, the net profit of VietinBank increased by 19 percent and pre-tax profit increased by 4.1 percent.
By the end of March 31st 2019, the total assets of VietinBank reached 1,146,773 billion dong, insignificantly declined. The bank’s oustanding loans fell by 0.34 percent to 861.590 trillion dong, in the context when the bank’s Capital Adequacy Ratio (CAR) is close to the minimum limit.
VietinBank’s on-balance sheet bad debts was 1.85 percent. The bank’s interest and fee receivables reached over 31 trillion dong, accounting for 2.72 percent of the total assets.
Regarding capital source, VietinBank’s equity by the end of March 31st 2019 was 70.125 trillion dong, up by nearly four percent compared to the beginning of the year. The bank’s customer deposits were 824.612 trillion dong, slightly down by 0.15 percent; in which, the proportion of non-term deposits was nearly 15 percent.
