Vietcombank posts $146m in profit

HA NOI — Partly-equitised Vietcombank posted a creditable pre-tax profit of VND2.8 trillion (US$145.83 million) to June 30, up 7.3 per cent against the same six months of last year.

After-tax profit of VND2.15 trillion ($111.77 million) was up 8.7 per cent.

"I'm pleased with the result and believe Vietcombank will be able to beat its target of VND4.5 trillion ($234.38 million) in pre-tax profit by year end," Vietcombank chairman Nguyen Hoa Binh told Viet Nam News yesterday.

It would have been very difficult to make a higher profit.

The bank's net profit to June 30 was VND4.19 trillion ($218.12 million), up 40.7 per cent against the first six months of last year.

Net income from non-credit services was up 15 per cent to VND475 billion ($24.74 million). But revenue from the bank's foreign exchange services was down 50.9 per cent to VND192 billion ($10 million).

Credit services accounted for 80 per cent of the total profit, Vietcombank Financial Statement Spokeswoman Phung Nguyen Hai Yen told Viet Nam News.

The non-credit and foreign exchange services provided the remainder.

Vietcombank had wanted to raise its profit from non-credit services but the effort failed.

The Ha Noi-based bank increased its risk provision 39.6 per cent against the first half of last year to VND350 billion ($18.22 million).

Its total assets as of June 30 was VND246.33 trillion ($12.83 billion).

The bank is now increasing its charter capital from VND12.1 trillion ($630.2 million) to VND13.22 trillion ($688.7 million) through the issuing of 112.28 million shares to existing shareholders - including the State - at a ratio of 1,000:92.79.

The State Bank of Viet Nam - the State's holder of Vietcombank shares - transferred VND1.02 trillion ($53.02 million) from the support fund for the reorganisation and equitisation of State-owned enterprises to buy additional shares on Monday.The State now holds almost 1.1 billion or 90.72 per cent of Vietcombank shares.

Vietcombank has sold 5 million shares or 0.57 per cent of its stake in Eximbank and 19 per cent of its stake in Gia Dinh Bank to reorganise its investment portfolio.

It now holds an 8.19-per-cent stake in Eximbank and 11 per cent in Gia Dinh Bank.

The sales were also intended to help Vietcombank raise its minimum capital adequacy ratio to 9 per cent - instead of the previous 8 per cent - and lower its ownership of other credit institutions to 11 per cent in accordance with central bank regulations, explained general director Nguyen Phuoc Thanh.

Vietcombank shares, VCB on the HCM City Stock Exchange, closed down 0.1 per cent at VND36,900 each yesterday. — VNS