VIB Bank has emerged as the fastest growing bank

Techcombank, owned by the ‘hidden’ billionaire Ho Hung Anh, has announced its business results in 2018 with profit exceeding nearly all other banks, including the two state-owned giants VietinBank and BIDV.

Its pretax profit in 2018 reached VND10.7 trillion, an increase of 31 percent over the year before. The bank made a big jump into the second position among the most profitable banks, below Vietcombank, a state-owned bank.

2018 was a successful year for Techcombank, which issued many records. It increased tier-1 capital by three times, surpassing VietinBank, BIDV and VP Bank to become the private bank with the largest charter capital and largest capitalization value. This was the first time a private bank found its name in the top three banks in terms of profits.

VP Bank of Ngo Chi Dung, also a well known businessman, continued to stay in the fourth position with the pre-tax profit of 9.2 trillion and post-tax profit of VND7.4 trillion.

The year 2018 also witnessed the strong rise of three other private banks, namely Military Bank (MB), Asia Commercial Bank (ACB) of Tran Huy Hung and HDBank of female billionaire Nguyen Thi Phuong Thao.

MB reported a profit surging to VND7.7 trillion, becoming one of three private banks which found their names in the five most profitable banks.

HD Bank reported pre-tax profit in 2018 increasing by 66 percent to the record high of VND4 trillion and pre-tax profit in Q4 2018, twice as much as the same period 2017.

ACB, after restructuring, also made a big leap in 2018 with pre-tax profit reaching VND6.388 trillion, or 2.4 times higher than 2017.

Among the banks which reported fat profits of VND1 trillion and higher, SHB caught the special attention with the pre-tax profit of VND2.085 trillion. The bank also had the indexes in operation safety, bad debt ratio and liquidity better than the safety line. 

VIB has emerged as the fastest growing bank with the profit of VND2.741 trillion, up by 95 percent compared with 2017. LienViet Post Bank saw profit declining slightly, but the business performance was still satisfactory with VND1.213 trillion in pretax profit.

Huynh Minh Tuan from VnDirect Securities commented that the changes in the positions of banks have relations with restructuring. Some banks have begun making provisions against risks, which decreased their profits. 

Meanwhile, other banks boomed thanks to their strategy on developing service and investment activities and adding more clients.

US$1=VND23,000

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M. Ha