Commercial joint stock banks in Vietnam posted high profit growth in the first eight months of 2007 in the context of Vietnam’s burgeoning financial market, Securities Investment reported Monday.
So far, large-sized banks have posted unprecedented record profit.
Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), one of only two listed banks on the Vietnam’s stock market, behind ACB, earned VND900 billion (US$56.25 million) in pretax profit, soaring from VND543 billion last year.
The bank will soon surpass the set target of VND1.4 trillion in 2007, said Sacombank chairman Dang Van Thanh.
ACB, the largest commercial joint stock bank, obtained pretax profit of VND1.1 trillion (US$68.75 million), deposits of over VND58.06 billion and outstanding loans of VND25.3 trillion.
Vietnam Export Import Commercial Bank (Eximbank) and Dong A Bank , meanwhile, reported profit of VND382 billion and VND300 billion, respectively.
Besides big banks, small and medium-sized banks also reported high earnings in the period. Viet A Bank (VAB) raked in VND160 billion in profit, finishing 90 per cent annual target.
Vietnam’s financial sector boasts great potential, said EurOrient Financial Group chairman Ron Nechemia, adding that his company plans to pour capital into the local market.
The economy’s capital demand for big projects is still high and credit growth is forecasted to double GDP, domestic banks are eyeing a good outlook. However, the sector is still facing challenges, with poor infrastructure system and backward technology.
Recently, banking shares price on the stock market has decreased by 30-50 per cent from that in early this year. It is time to buy the shares, Dragon Capital director Dominic Scriven said.
However, their price is difficult to bound back as expected, some experts said. (Securities Investment, Young People)
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