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Banking & Finance

Vietinbank's 1H pre-tax profit up 12%

Released at: 09:25, 14/07/2017

Vietinbank's 1H pre-tax profit up 12%

Illustrative image (Source: vaytinchapnganhang.org)

Handsome Q1 for bank, with pre-tax profit figure representing 53% of annual plan.

by Quang Huy

Vietinbank’s pre-tax profit during the first half of this year rose 12 per cent year-on-year to more than VND4.7 trillion ($206.75 million), equal to 53 per cent of the annual plan, Chairman of the Board of Directors Mr. Nguyen Van Thang told a meeting to review the bank’s performance on July 13.

As at June 30, all key indicators were seeing steady growth, with total assets standing at VND1,030 trillion ($45.31 billion), up 9 per cent since the end of last year and total deposits and total outstanding loans reaching VND947 trillion ($41.6 billion) and VND767.8 trillion ($33.8 billion), respectively, up 9.7 per cent and 9.6 per cent since December 30.

As at the end of the second quarter, return on equity (ROE) and return on assets (ROA) were 12.5 per cent and 0.97 per cent, against 1.1 per cent and 11.5 per cent at the end of the same period last year.

“It is safe to say that Vietinbank’s business results during the first six-month period of 2017 have been higher than the average sector growth,” Mr. Thang told the gathering, adding that it is moving at full speed to meet this year’s plan.

The bank’s annual general meeting in April approved business plans for this year, with total assets to increase to VND1,086 trillion ($47.84 billion), or 14 per cent higher than in 2016. Outstanding loans are to rise 16 per cent to VND827 trillion ($36.3 billion), total deposits 15 per cent to VND996 trillion ($43.87 billion), and pre-tax profit about 3 per cent, to VND8.8 trillion ($387.6 million).

There have not been any updates about its merger with PG Bank, even though the Board has carried out the necessary procedures as required, under the guidance of State management agencies. By the end of last year, it had completed paperwork required by the State Bank of Vietnam (SBV).

After a review, the SBV then requested Vietinbank update its valuation of PG Bank shares and calculate and negotiate the swap ratio. At the central bank’s request, in continued to engage independent consultants Deloitte Vietnam to complete the task and is still negotiating with PG Bank.

Under a previous agreement approved by shareholders of the two banks in 2015, the ratio to convert PG Bank’s shares into Vietinbank’s was 1:0.9, with each PG Bank share being equal to 0.9 Vietinbank share. Accordingly, Vietinbank will issue an additional 270 million shares in exchange for 300 million PG Bank shares. Another 30 million shares will be issued to Vietinbank’s existing shareholders.

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