They are Vietcombank, BIDV, Agribank and Vietinbank, whose decision will take effect on January 10. Agribank Chairman, Trinh Ngoc Khanh, stated that the rates on loans to agriculture, export, supporting industries, high technology and small and medium-sized businesses will be cut by 0.5 percentage points. A similar rate cut will also be made by Vietinbank and Vietcombank, meaning the maximum lending rates will be no higher than 6% per year. Lower interest rates are expected to eat into the banks’ profits, with Vietinbank and Vietcombank seeing their profits decrease by VND700 billion (US$30.1 million) and VND450 billion (US$19.35 million) respectively. The earnings of Agribank are also expected to decrease by millions of US dollars. But Vietcombank Chairman, Nghiem Xuan Thanh, stated that the rate cuts will be practical actions, reflecting Vietcombank’s commitment to proactively implement the government’s policies for the sake of overall economic development. … [Read more...] about Four Vietnamese banks cut rates to boost economy
Vietnamese bank interest rate
Vietnamese banks issue bonds galore as credit demand rises
BIDV, Vietnam's biggest bank by assets, has approved the issuance of 400,000 bonds to raise VND4 trillion ($170.5 million), of which VND3 trillion ($127.88 million) are in 7-year bonds and VND1 trillion ($42.62 million) in 10-year bonds. Previously, the State Bank of Vietnam had allowed BIDV to issue a maximum of VND20 trillion ($852.59 million) worth of bonds this year. Similarly, Vietcombank, the third largest bank in the country by assets, has successfully raised VND550 billion (23.44 million) through the issuance of individual bonds at VND100,000 ($4.26) per bond. The bonds mature in six years, and carry a 7.4-percent annual interest rate. Among many other banks that have raised capital through bonds in 2018 is VietinBank, which has successfully completed a second bond issue this year, raising VND450 billion ($19.18 million) from 2-year bonds with fixed 6-percent interest. Last July, VietinBank, the country’s second largest lender by assets, … [Read more...] about Vietnamese banks issue bonds galore as credit demand rises
Moody’s lowers outlook on Vietnamese banking system
“Economic growth in Vietnam will remain robust, and the banks’ asset quality will improve, helping to strengthen their profitability,” Eugene Tarzimanov, a Moody’s Vice President and Senior Credit Officer, said in a statement. Rebaca Tan, a Moody’s Analyst said, “But asset risks are still evident after years of rapid credit growth, and negative spillovers from the escalating trade tensions between the U.S. and China will see Vietnam vulnerable to slower trade growth.” Moody’s conclusions are contained in its report on Vietnamese banks, entitled “Banking System Outlook – Vietnam: Economic growth and improving asset quality support stable outlook,” and is co-authored by Tarzimanov and Tan. The stable outlook rating is based upon Moody’s assessment of six drivers: operating environment (stable); asset risk (improving) and capital (stable); funding and liquidity (stable); profitability and efficiency (improving); … [Read more...] about Moody’s lowers outlook on Vietnamese banking system
Vietnamese banks register more than robust profit growth
The Bank for Foreign Trade of Vietnam (Vietcombank) has announced net profits of VND9.38 trillion ($403.13 million) in the first nine months, a 47 percent increase compared to the same period last year. In the private banking sector, the current profit leader is Techcombank, which reported a 9 month profit before tax (PBT) of VND7.77 trillion ($334.2 million), an increase of 61 percent over the same period last year. Nearly all business lines at Techcombank saw positive growth. Pre-tax profit of lender ACB hit a record VND4.8 trillion ($206.3 million) in the 9-month period, 2.4 times higher than the same period last year. The highest growth rate of the period went to Vietnam International Commercial Joint Stock Bank (VIB), with its profit before tax of VND1.72 trillion ($73.9 million), marking an increase of 176 percent over the same period last year. Banks relied heavily on credit revenues to achieve these profits. For example, VPBank granted loans worth VND 211.09 trillion ($9.08 … [Read more...] about Vietnamese banks register more than robust profit growth
Vietnamese banks optimistic about transaction picture in 2018
A recent survey conducted by the State Bank of Vietnam in September revealed that 83 percent of credit institutions have expectation for a high business growth this year with interest rates being kept stable and profit continuing to increase year-on-year. Credit institutions expect increases in capital mobilization and credit balance in Quarter 4 of 4.5 and 15.2 percent, respectively, given interest rates remain stable.-VNA … [Read more...] about Vietnamese banks optimistic about transaction picture in 2018