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Banking & Finance

Top 10 most profitable banks honored

Released at: 14:33, 12/11/2019 BUSINESS SPOTLIGHT

Top 10 most profitable banks honored

Photo: HDBank

Vietnam Report releases Vietnam Profit 500 for 2019 in different categories, including banking.

by Hung Cao

This year’s Vietnam Profit 500 from Vietnam Report (VNR) honored major groups and corporations including Petrolimex, Samsung, Viettel, Vingroup, Vinamilk, and Vietjet, among others, while the Top 10 Most Profitable Banks were Vietcombank, Vietinbank, Techcombank, VPBank, HDBank, MB, ACB, and others.

According to VNR, rankings were compiled subjectively and independently on a weighted average of several main indicators that reflect profitability (ROA and ROE), profit before tax, and revenue.

Companies appearing in Vietnam Profit 500 were capable of generating healthy profits and contributing to Vietnam’s overall economic development, supporting the promotion of Vietnamese brands to the domestic and international business communities.

Vietcombank extended its reign leading the Vietnam Top 10 Most Profitable Companies in Banking, amassing consolidated profit before tax of $758.8 million in the first nine months of the year, equivalent to a 50.6 per cent year-on-year increase and representing 85.8 per cent of its target for the year.

Its separate profit before tax rose 51.9 per cent year-on-year to $744 million, reaching 85.4 per cent of its annual target. Return on assets (ROA) and return on equity (ROE) stood at 1.65 per cent and 27.75 per cent, respectively, which are well above the industry average and reflect significant progress against 2018.

Following in second and third place were Agribank and Techcombank. Despite being a State-owned bank and reporting unflattering business results in previous years compared to other State-owned banks, Agribank posted around $418.4 million in profit before tax for the first nine months of the year, which equals 88 per cent of its 2019 target and surpasses last year’s total profit.

Techcombank, meanwhile, posted $382.2 million in profit before tax in the first nine months, an increase of 14 per cent year-on-year. Profit before tax in the third quarter rose 24 year-on-year to $138 million.

MBBank reported a 26.6 per cent year-on-year increase in profit before tax in the first nine months, to $328.5 million, while VPBank generated $310.5 million in profit before tax and reached 76 per cent of its annual target.

Transactions at HDBank

At HDBank, a streak of recent significant growth and impressive business results has emerged and was further confirmed in the third quarter, with profit before tax skyrocketing 51 per cent year-on-year. It posted record-breaking profit before tax of $148.7 million.

Its ROA and ROE stood at 1.7 per cent and 20.2 per cent, respectively, which propelled HDBank onto the list of most profitable banks. The net income margin was 4.6 per cent and in the top 3 among listed banks, while its asset quality continued to surpass the industry average, with the separate non-performing loan ratio kept at 1.1 per cent.

Apart from its rankings, VNR also evaluated other criteria, including business environment and potential growth. In the latter category, banking is projected to be the fifth fastest-growing industry between 2020 and 2025.

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