During the “season” of shareholders’ meetings, Vietnamese banks are confident about their plans to increase profits by several trillion dong in 2021. Several banks have set a record growth target of up to 30%-50%.
Tien Phong Commercial Joint Stock Bank (TPBank) recently held its annual shareholders’ meeting to approve a plan to have its pre-tax profit in 2021 to rise by 32% compared to 2020, equivalent to about VND5.8 trillion.
The target is high but it considered appropriate in the context of the economy still facing challenges from Covid-19. It is in line with the Government’s policy, and measures to stimulate economic growth and macroeconomic stability.
TPBank of brothers Do Minh Phu and Do Anh Tu also plans to have total assets of VND250 trillion by December 31, 2021, an increase of 21%. Total mobilization is expected to reach over VND221.8 trillion, up 20%.
In 2021, TPBank will accelerate digital transformation, focusing on building IT infrastructure, platforms, and essential and specialized applications. Thanks to its digital strategy with the LiveBank system, TPBank has quadrupled the number of customers opening new accounts and cards; the Current Account Savings Account (CASA) increased by 5 times and the service time fell by 40-60% in 2020.
In the first three months of 2021, total assets of TPBank rose by 22.38% year on year, with over VND216 trillion. As of March 31, 2021, the bank’s credit balance reached more than VND138 trillion, up 24.36% year on year. In the first quarter, the bank recorded pre-tax profit of more than VND1.42 trillion, up 40.87% year on year.
Meanwhile, the shareholders’ meeting of the Saigon Hanoi Commercial Bank (SHB) approved the highest profit plan of 2021 with VND6.1 trillion if the bank completes the raising of capital in the third quarter. If it completes raising capital in the fourth quarter, the expected profit is VND5,828 billion.
Viet Capital Bank (BVB) has set a target of 44% growth in profit in 2021. In 2020, it reported a 27.4% increase in pre-tax profit, with VND201 billion.
In 2021, the Bank for Foreign Trade of Vietnam (Vietcombank) has set a target for profit growth of 10-20% and credit growth of 8-11%.
MBBank proposed a pre-tax profit plan to increase 25-30% compared to 2020, reaching over VND14.6 trillion.
Meanwhile, OCB expected pre-tax profit to increase by about 15% to VND5,560 billion.
With positive developments in 2020, shares of many banks have increased sharply. The price for TPBank shares increased from VND18,000 in November 2020 to VND28,000 per share at present. The price for SHB shares doubled within three months, and that of MBB shares nearly doubled in six months.
This article was originally published in VNA
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Source: Vietnam Insider