Credit growth lifts bank profits. (Photo: VNS/VNA)High credit growth has helped many commercial banks to gain impressive profits this year despite having to provide a larger amount for provisional fund.
By July 20, credit growth of banks was estimated to rise by 7.32 percent against late last year, with Hanoi registering a 12.4 percent increase.
The credit growth has contributed significantly to the banks' profits, which mainly come from lending.
Vietcombank had, by the end of June, gained a pre-tax profit of more than 3 trillion VND (138.24 million USD), up 7 percent against the same period last year. The result helped the bank meet 51.5 percent of its yearly target.
Vietcombank's provision during the period was 2.994 trillion VND (137.97 million USD) and its non-performing loans stood at 2.4 percent.
Though also having to raise fund for the provision, VietinBank's pre-tax profit reached nearly 3.9 trillion VND (179.72 million USD).
BIDV also gained a positive pre-tax profit of 3.016 trillion VND (138.98 million USD), up 25 percent year-on-year.
According to plans, the three big-sized banks were expected to gain impressive pre-tax profits with 7.5 trillion VND (345.62 million USD) of BIDV, 7.3 trillion VND (336.4 million USD) of VietinBank and 5.9 trillion VND (271.88 million USD) of Vietcombank.
Besides the large banks, smaller sized ones also reported high profits.
With 342 billion VND (15.76 million USD) in the first half, Tien Phong Bank met 55 percent of its annual profit target.
Eximbank also met a half of its 1 trillion VND (46 million USD) profit target set for this year.
Many banks, which have been allowed to raise the credit growth ceiling this year recently by the central bank, also expected to gain higher profits in the second half of the year.
As the country's credit growth has so far risen sharply against the same period last year, central bank Governor, Nguyen Van Binh, said the central bank could lift the credit growth target this year to 17 percent from 13-15 percent set earlier this year to boost economic growth.-VNA
