Many banks in Vietnam report big profits in 2016
Major Vietnamese banks, including Vietinbank, Vietcombank and BIDV, have reported high profits in 2016.
BIDV reported it made pre-tax profits of VND7.5 trillion (USD346 million) in 2016, up 7% on-year. By late 2016, BIDV’s total assets reached 1 quadrillion (USD45.4 billion), the highest level so far, up 7.5% on-year.
Vietinbank made a pre-tax profit of VND8.25 trillion (USD39.2 million) in 2016, fulfilling the set target. The bank’s total assets were worth VND947 trillion (USD43 billion), up 22% on-year. By the end of the year, Vietinbank tried to cut its bad debt rate to below 1% and will strive to eliminate them in the coming time.
Meanwhile, Vietcombank also reported a pre-tax profit of VND8.2 trillion, up 23.4%.
The banks’ profits most come from their loans to customers and their increase in utility service development. In 2016, Vietcombank achieved a high credit growth of 18.9% thanks to the increased supply of loans of low interests to customers.
With the high profits in 2016, many big banks in Vietnam are planning to give employees huge Tet bonuses this year. Vietcombank have decided to award employees with eight months’ worth of salary as a Tet bonus.