In the first half of 2019, Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) continued to create a record of 11.303 trillion dong profit before tax, up 41 percent compared to the same period last year. This is also the highest semi-annual profit of Vietcombank, even higher than the yearly target profit of Techcombanka high-profit bank of 2019 after Vietcombank.
Credit sector continued to be the main thrust of Vietcombank when growing strongly in both quantity and quality. In terms of quantity, Vietcombank’s credit business revenue amounted to 32.802 trillion dong in the first half of 2019, an increase of 25.4 percent compared to the same period last year.
In which, the loan segment continued to bring the largest revenue with 25.762 trillion dong, growing by 25.4 percent and accounting for 78.5 percent of total credit revenue. Revenue from securities trading and investment reached 4.209 trillion dong, up 7.5 percent and accounted for 18.5 percent. The rest was revenue from deposits, financial leases, guarantee operations and other revenue.
In terms of quality, the gross profit margin of the credit sector (calculated by gross profit/income and similar income) continued to increase significantly, from 49.7 percent in the first half of 2018 to 52.1 percent in the first half of 2019.
As a result, in the first half of the year, the credit sector brought most of the profit to Vietcombank when it recorded 17.078 trillion dong in gross profit, up 31.4 percent over the same period last year.
In addition to growth from the credit segment, which helped total operating income increased by more than 20 percent, cost savings was also an important factor that helped Vietcombank create a profit record. In the first half of this year, the ratio of total operating cost/total operating income reached 36.6 percent, much lower than 41.3 percent in the first half of the previous year, equivalent to a reduction of 4.7 percentage point. At the same time, the ratio of risk provisioning on gross profit also decreased, from 28.8 percent in the first half of this year to 22.7 percent in the first half of the previous year, equivalent to 6.1 percentage point.
As of the end of June 30, 2019, Vietcombank’s total assets were at 1.12 quadrillion dong, up 4.5 percent compared to the beginning of the year. Loans outstanding reached 695.467 trillion dong, an increase of 10 percent. Non-performing loan ratio was 1.03 percent.
Regarding equity, until the end of June 30, 2019, Vietcombank’s equity reached 77.336 trillion dong, up by 24.4 percent after six months. Customer deposits were at 870.86 trillion dong, up 8.6 percent; in which, demand deposits accounted for 27.5 percent.
