Retail News CRM

Tag: Vietinbank

  • VietinBank to sell 358 properties to collect debts

    VietinBank to sell 358 properties to collect debts

    State-owned VietinBank is selling 358 foreclosed properties pledged by loan borrowers, including four- and five-star hotels, worth a total of VND8 trillion (US$337.69 million) to realize their debts.

    The properties will be either auctioned or negotiated for sale.

    The bank is also selling 38 vehicles, machines and other equipment.

    The most valuable asset is a five-star hotel in Da Nang City built on a 1,200-square-meter parcel of land with 236 rooms and priced at around VND600 billion.

    The second most expensive are two four-star hotels in Hoi An with around 100 rooms each and priced at VND420 billion apiece.

    The lender is also set to sell nearly 60 other hotels and properties in Hoi An.

    Vietinbank is also selling office buildings, including one worth VND213 billion in Ho Chi Minh City’s District 12, and a water treatment plant worth VND108 billion in Gia Lai Province.

    The bank is also selling 566 consumer loans at 90% of their remaining value.

    Other banks too have been selling off collateral assets this year to restructure their credit portfolio.

    BIDV has been trying to auction a hydropower plant with a reserve price of VND325 billion but 10 attempts have proven unsuccessful.

    Sacombank has been selling bad debts this year.

    Banks saw credit quality deteriorate in the first quarter this year due to the slump in the property and consumer goods markets.

    Bad debts in the sector rose from 2% to 2.91% in the first two months, according to the latest data available from the State Bank of Vietnam.

    VNDirect analysts said in a note that banks’ rising bad debts are driven by the property sector, which accounts for 21% of all credit.

    Lees ook:

    Lees ook:

  • VietinBank to sell 358 properties to collect debts

    VietinBank to sell 358 properties to collect debts

    State-owned VietinBank is selling 358 foreclosed properties pledged by loan borrowers, including four- and five-star hotels, worth a total of VND8 trillion (US$337.69 million) to realize their debts.

    The properties will be either auctioned or negotiated for sale.

    The bank is also selling 38 vehicles, machines and other equipment.

    The most valuable asset is a five-star hotel in Da Nang City built on a 1,200-square-meter parcel of land with 236 rooms and priced at around VND600 billion.

    The second most expensive are two four-star hotels in Hoi An with around 100 rooms each and priced at VND420 billion apiece.

    The lender is also set to sell nearly 60 other hotels and properties in Hoi An.

    Vietinbank is also selling office buildings, including one worth VND213 billion in Ho Chi Minh City’s District 12, and a water treatment plant worth VND108 billion in Gia Lai Province.

    The bank is also selling 566 consumer loans at 90% of their remaining value.

    Other banks too have been selling off collateral assets this year to restructure their credit portfolio.

    BIDV has been trying to auction a hydropower plant with a reserve price of VND325 billion but 10 attempts have proven unsuccessful.

    Sacombank has been selling bad debts this year.

    Banks saw credit quality deteriorate in the first quarter this year due to the slump in the property and consumer goods markets.

    Bad debts in the sector rose from 2% to 2.91% in the first two months, according to the latest data available from the State Bank of Vietnam.

    VNDirect analysts said in a note that banks’ rising bad debts are driven by the property sector, which accounts for 21% of all credit.

    Lees ook:

  • VN-Index plunges with rising trade

    VN-Index plunges with rising trade

    Vietnam’s benchmark VN-Index dropped 1.56 percent to 1217.30 points Friday with trading value rising double-digit.

    The index closed 19 points lower after gaining nearly 23 points on Thursday. It has lost 67 points this week as global markets plunged due to concerns of inflation and disrupted supply chains.

    Trading on the Ho Chi Minh Stock Exchange (HoSE) increased by 17.5 percent to VND17.33 trillion, highest in four sessions. The VN-30 basket, comprising the 30 largest capped stocks, saw 22 tickers dropped.

    SSI dropped 7 percent to the lowest since March last year in its seventh losing session in a row.

    It was followed by eight banking stocks, losing between 6.4 percent and 3.6 percent, including MBB of lender MB, TPB of private TPBank and CTG of state-owned lender VietinBank.

    Five blue chips rose, with MSN of conglomerate Masan Group rising 5.7 percent and GAS of state-owned Petrovietnam Gas gaining 4.7 percent.

    Foreign investors were net buyers to the tune of VND309.68 billion, mainly picking up HPG of steelmaker Hoa Phat Group and VND of brokerage VNDirect.

    The HNX-Index at the Hanoi Stock Exchange, where mid and small caps list, was down 2.68 percent while the UPCoM-Index at the Unlisted Public Companies Market was down by 2.41 percent.

    Lees ook:

  • Vietnam urges banks to merge, become more competitive

    Vietnam urges banks to merge, become more competitive

    The Vietnamese government is urging banks to merge and increase their scale toward becoming more competitive. It wants to make Vietnam an ASEAN leader in the banking sector.

    The government wants banks to have a capital adequacy ratio of at least 10-11 percent by 2023, and 11-12 percent by 2025, according to a recent plan to restructure credit organizations and handle bad debts during the 2021-2025 period.

    The capital adequacy ratio is a measure of how much capital a bank has available to handle a certain amount of loss before facing the risks of becoming insolvent.

    The government has said it wants Vietnam’s banking sector to become a top four leader in the ASEAN bloc. It has asked banks to make plans to increase their charter capital and improve their management.

    Big banks should have a minimum charter capital of VND15 trillion by 2025, and small and medium banks, VND5 trillion, it said.

    The government also wants banks to have a bad debt ratio of under 3 percent by 2025.

    Vietnam has 31 domestic commercial banks, with the biggest in terms of charter capital being state-owned lenders BIDV, Vietinbank and Vietcombank, according to the State Bank of Vietnam.

    Lees ook:

  • VietinBank Securities eyes another record year

    VietinBank Securities eyes another record year

    VietinBank Securities eyes record profits again this year through the stock market itself is likely to be down.

    Its board has approved a profit target of VND505 billion ($22 million), 5 percent up from last year.

    Last year pre-tax profits tripled to VND480 billion on revenues of VND1.06 trillion.

    Tran Phuc Vinh, its chairman, said though the stock market is no longer booming like last year and growth is likely to be slower this year, he expected the number of new retail investors to keep rising.

    “We need to invest in technology, and increase salaries, bonuses, and commissions to attract more brokers and collaborators”.

    The brokerage is also set to enter corporate bond consultancy and distribution and step up financial activities by raising its margin rate to 200 percent of shares owned.

    Lees ook:

    Lees ook:

  • VietinBank pioneers online foreign exchange services

    VietinBank pioneers online foreign exchange services

    VietinBank has launched FX Online 24/7, allowing customers to perform transactions at any time, anywhere on platforms VietinBank eFAST and VietinBank Ipay.

    VietinBank focuses on innovating its system to improve FX services. Just by taking some simple steps on a smartphone or a laptop with an internet connection, without having to go to the bank, customers can perform FX transactions online with VietinBank for different currencies.

    Corporate customers can buy and transfer foreign currency online within business hours.

    Corporate customers or individual customers can sell foreign currency online from foreign currency accounts and receive Vietnamese dong into their accounts anytime, including weekends and holidays.

    With a multi-level authorized matrix, VietinBank eFAST can meet the diversified demand of customers for authorization. The system provides security methods meeting the State Bank of Vietnam’s requirements including OTP verification and keypass token verification.

    VietinBank is offering a promotional campaign for corporate customers using the service “Customers sell foreign currency online 24/7” through VietinBank eFAST platform. Customers are offered 20 preferential points with USD/VND transactions; 50 preferential points with EUR/VND and 0.5 preferential point with JPY/VND. There are also special offers for other currency pairs.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • General director of VietinBank appointed new chairman

    General director of VietinBank appointed new chairman

    Vietnam Bank for Industry and Trade (VietinBank) has elected General Director Tran Minh Binh as the bank’s new chairman for the 2019-2024 term.

    The appointment came Tuesday, two months after the bank’s former chairman, Le Duc Tho, was appointed secretary of Ben Tre Provincial Party Committee from July.

    Tran Minh Binh, 47, holds a Master’s degree in Business Administration from National Economics University – Belgium’s ULB University.

    Binh has more than 22 years of experience working at VietinBank, including 17 years as a professional manager at the head office and branches and eight years as a senior manager.

    On the same day, the bank also assigned Nguyen Hoang Dung, its deputy general director, as general director in charge of the executive board, replacing Tran Minh Binh.

    VietinBank, the third-largest lender by total assets in Vietnam, made a consolidated net profit of VND10.81 trillion ($473.69 million) in the second quarter of 2021, up 44.52 percent compared to the same figure in 2020, according to the bank’s financial report.

    Lees ook:

    Lees ook:

  • 16 banks to lower loan interests amid Covid-19

    16 banks to lower loan interests amid Covid-19

    Sixteen commercial banks have agreed to reduce interests on existing loans of Covid-hit businesses from now until the end of the year.

    The banks include Vietcombank, Vietinbank, BIDV, Agribank, Techcombank, MB, VPBank, TPBank and Sacombank.

    Lowering interests is difficult, but this is the time when banks need to share the burden with businesses, said Nguyen Quoc Hung, general secretary of Vietnam Banks Association, at a meeting Monday.

    Agribank is committed to lowering its interests by one percentage point on average, while MB will do so for at least one percentage point.

    Sacombank will seek shareholder permission as lowering the interest by one percentage point is equivalent to 40 percent of its profit target for the year. Some other banks will do the same.

    But not all businesses will be eligible for the reduction. Bank leaders said they would focus on companies truly hurt by the pandemic

    “Real estate companies with large profits, export firms or individuals borrowing money to buy cars should not be eligible for the reduction,” said Deputy Director of Techcombank Pham Quang Thang.

    He added companies that are essential to the economy with a large workforce should be eligible.

    Lees ook:

  • VietinBank pre-tax H1 profits up 75 pct

    VietinBank pre-tax H1 profits up 75 pct

    State-owned lender VietinBank has recorded pre-tax profits of VND13 trillion ($565.2 million) in the first six months of 2021, a year-on-year increase of 75 percent.

    Its ratio of non-performing loans at the end of Q2 was 1.38 percent, chairman Le Duc Tho said, adding that the targeted non-performing loans ratio for this year was 1-1.2 percent

    The bank’s total assets value at the end of June was VND1.4 quadrillion ($60.8 billion), while its loans outstanding were VND1.06 quadrillion, according to its CEO Tran Binh Minh.

    Capital mobilization as of June reached VND1.2 quadrillion, up 3.4 percent year-on-year.

    The bank plans to increase its charter capital by 29 percent to over VND48 trillion this year by paying dividends in shares.

  • VietinBank to pay dividends in shares for last three years

    VietinBank to pay dividends in shares for last three years

    The government has approved VietinBank’s plans to pay dividends for 2017-19 at a total rate of 28.79 shares for every 100 owned.

    The government owns a 64.46 percent stake in the lender.

    CTG shares gained 6.1 percent to rise to a new all-time high of VND51,200 ($2.22) on Monday, and has gained 48 percent this year.

    Its pre-tax profits rose by 2.7 times year-on-year in the first quarter to VND8.06 trillion.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • VietinBank Securities expects surge in profits

    VietinBank Securities expects surge in profits

    VietinBank Securities targets pre-tax profits of VND180 billion ($7.8 million) this year, up 20 percent from 2020, as the stock market continues to rise.

    The company secured a $30-million loan from a consortium of four Taiwanese banks in March and another $60 million from Korea’s Woori Bank and Taiwan’s Fubon Bank and Cathay United Bank a month later.

    It is its highest profit target since 2017, with CEO Tran Phuc Vinh explaining that the low deposit interest rates which are diverting funds into the stock market, and the increasing number of new investors are the factors for the optimism.

    The loans provide it with funds for margin financing and investing in corporate bonds and certificates of deposit, Vinh said.

    It reported a 20 percent rise in revenues to VND610 billion last year and an 8 percent increase in pre-tax profits to VND151 billion.

    Vietnam’s benchmark VN-Index has risen 10.5 percent from the end of last year to 1,219.75 points Tuesday. Brokerage FPT Securities forecast that VN-Index could hit 1,351-1,400 points this year.

    The stock market saw nearly 258,000 new trading accounts opened in the first quarter, accounting for 65 percent of the figure recorded in 2020 as a whole, according to the Vietnam Securities Depository (VSD).

    This took the total number of accounts to nearly 3.02 million as of last month, equivalent to 2.8 percent of Vietnam’s population.

    Lees ook:

  • Vietnamese banks continue to ascend global brand rankings

    Vietnamese banks continue to ascend global brand rankings

    Nine Vietnamese lenders, five of them state-owned, have risen up the list of the world’s 500 most valuable banking brands.

    State-owned Agribank, one of the ‘Big 4’ state-owned lenders, jumped 17 places to 173th in the annual ranking put out by U.K. consultancy Brand Finance.

    Fellow state-owned lenders Vietcombank and VietinBank rose 27 and 61 spots to 180th and 216th.

    BIDV was at 246th and MB at 374th, up 30 and 12 spots.

    Of the private lenders, VP Bank rose 37 places to 243rd and the country’s private player, Techcombank, jumped 57 spots to 270th.

    Sacombank and ACB rose 30 and 23 places to 392nd and 397th.

    The report said VietinBank was one of 10 fastest-growing banks globally last year.

    “Vietnam’s banking sector has seen the greatest year-on-year brand value growth of any nation in the rankings with 23 percent,” the consultancy said.

    “Vietnam’s ability to effectively control and constrain Covid-19 has allowed it to buck the sector-wide trend of declining brand value.

    “Internal reforms have strengthened accountability in the Vietnamese financial sector, which has had the knock-on effect of boosting not just revenues, but brand reputation and trust.”

    Vietnam’s banking sector has recorded cumulative brand value growth of 753 percent in the last five years, the second-highest rate in the rankings.

    “Since the Vietnamese government introduced its strategy to boost accountability and the strength of the banking sector, including more stringent capital requirements and greater transparency, customer perception has improved,” Brand Finance said.

    China’s ICBC was the world’s top bank brand.

    Chinese banks maintained their dominance in the rankings, accounting for 33 percent of total brand value and seven of the 10 top climbers.

    Lees ook:

    Lees ook:

  • VPBank profits jump 26 pct

    VPBank profits jump 26 pct

    Lender VPBank reported a 26 percent jump in pre-tax profit last year to VND13 trillion ($564.24 million).

    The second and fourth quarters saw its highest ever quarterly profits of VND3.67 trillion and VND3.62 trillion.

    The lender’s profits exceeded those of state giant BIDV and private lender VIB.

    Its income was up 7.3 percent to VND39 trillion, with interest income accounting for nearly 83 percent.

    Services and securities trading were profitable, but foreign exchange trading caused a loss.

    Credit growth was 13.1 percent, and non-performing loans accounted for 2.9 percent.

    In 2019, VPBank had reported the sixth-largest pre-tax profit behind Vietcombank, Techcombank, Agribank, VietinBank, and BIDV.

    Lees ook:

    Lees ook:

    Lees ook:

  • VietinBank reports record profit

    VietinBank reports record profit

    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.

    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.

    Lees ook:

  • Big state banks gradually lose credit market share

    Big state banks gradually lose credit market share

    The credit market share of Vietnam’s three largest banks has fallen by 2.7 percentage points in the last two years due to liquidity constraints.

    The three, all state-owned and listed and the country’s largest by assets, Vietcombank, Vietinbank and BIDV, account for 34 percent of all loans outstanding, securities company VDSC said in a note last week.

    But this represents a 2.74-percentage-point fall even as the four largest non-state banks, Techcombank, VPBank, Military Bank (32.42 percent state-owned), and ACB, increased their share of loans outstanding by 1.6 percentage points.

    During the two years ending in the third quarter of 2020, VietinBank’s share fell by 1.96 percentage points, BIDV’s by 0.7 percent and VCB’s by less than 0.1 percent.

    The big fall in VietinBank’s market share is because it has been strapped for cash. There have been no major infusions of capital in the past few years, return on equity has been low, bonuses and employee welfare funds cause a big drain on resources, and the government appropriates much of its earnings.

    This situation has been exacerbated by Basel II standards, which prescribe a capital adequacy ratio (CAR) of 8 percent of risk-weighted assets for all financial institutions. Thus, to lend more, banks have to increase their charter capital.

    Though the Government has agreed to reduce its ownership in state-owned banks from 65 percent to 51 percent by 2025, it has yet to be implemented.

    But the government issued a decree in October allowing state-owned banks to pay dividends in stocks to increase their capital, helping them improve their growth prospects in the medium and long terms.

    According to the State Bank of Vietnam, banks’ total outstanding loans were worth VND8.69 quadrillion ($376.87 billion) at the end of the third quarter.

    Credit growth is expected to be 11 percent in 2020, down from 13.5 percent in the previous year.

    Lees ook:

    Lees ook: