VietinBank reports record profit

By Quynh Trang   January 7, 2021 | 12:05 pm GMT+7
VietinBank reports record profit
The logo of VietinBank in front of a building in Ho Chi Minh City. Photo by Shutterstock/TK Kurikawa.
VietinBank, Vietnam’s third largest lender by assets, has reported a 40 percent increase in standalone profits in 2020 to VND16.5 trillion ($715 million).

This is its highest ever profit, and chairman Le Duc Tho, speaking at a meeting on Wednesday, attributed it to a surge in non-interest income and reduction in operation costs.

While it has not published its financial statement for the year, the bank said in a press release that consolidated debts rose by 7.7 percent and non-performing loans were less than 1 percent.

Its non-interest income jumped 35 percent, lifting it as a ratio of total income from 16.5 percent in 2019 to 20 percent.

Income from services, foreign exchange trading and treasury operations increased by 12 percent, 24 percent and 70 percent.

Return on equity was 16.8 percent.

The bank targets 8-11 percent credit growth in 2021 and 10-20 percent growth in standalone profit and consolidated profit, and keeping non-performing loans to under 2 percent.

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