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Vietcombank to lower lending rate for exporters

Accordingly, the preferential lending interest rate of 17-19% per year will be offered to customers in sectors of production, export, agriculture and rural area. Particularly, customers subject to aforementioned borrowers in HCM City will enjoy the preferential lending interest rate of 16.5% per year. Exporters who use payment services via Vietcombank will be given the most preferential lending interest rate of only 16% per year. In addition, Vietcombank also set aside of four trillion dong to launch lending program for enterprises in the sectors of export of seafood and processing and export of wooden products whereby the preferential lending interest rate for this program will be only 16% per year.

Bad debt of Vietnam’s whole economy at 7-8pct: Bidv’s chairman

According to the representative of state-run enterprises, the bad debts of some banks are still higher than the average level of the entire banking system, of which, Vietnam Bank for Agriculture and Rural Development (Agribank)’s bad debt is 6.67% and Vietnam Commercial Joint Stock Bank for Foreign Trade (Vietcombank-VCB)’s bad debt is 3.47%. Notably, Agribank still posted low capital adequacy ratio (CAR).

State Bank hesitant in purchasing dollars

Only on April 29, the State Bank of Vietnam increased the dollar purchase price by 214 dong per dollar, in comparison with the price of April 28. Prior to that, the central bank kept the purchase prices at low levels for a long time. The statistics show big gaps between the market prices quoted by Vietcombank and the exchange rates announced by the State Bank’s Exchange, which have existed since early April.

PM approves bank's equitisation plan

MHB was established as a state-owned bank in 1997. Since then, its asset value has reached nearly VND51.4 trillion ($2.5 billion), 171 times its initial worth. The move follows the earliers equitisation of Vietcombank (VCB) and Vietinbank (CTG) – which are now listed on the HCM Stock Exchange.

Trillion-dong bank club

In previous years, the trillion-dong bank club used to include four state commercial banks plus ACB, Techcombank, Sacombank, Vietinbank and Vietcombank that are still called “state lender” because the state holds majority stake in them. During the last 3 years, the club admitted Eximbank, Maritime Bank and Military Bank. In 2010 alone, VIB joined the club.

Banks expect to post strong profit growth

Partly-equitised Vietinbank posted a pre-tax profit of VND4.37 trillion (US$203.25 million) for the year, up 48 per cent over 2009, while Vietcombank also saw its pre-tax profit rise by 21 per cent to VND5.4 trillion ($252 million). “Most of our profit came from credit operations, with institutional borrowers accounting for 70 per cent of total outstanding loans,” said Vietinbank chairman Pham Huy Hung.

Vietcombank 2010 gross profit rises 8% – CEO

Total assets rose 20.3% to 306.86 trillion dong ($15.8 billion), and loans jumped 24.9% to more than 175 trillion dong, Chief Executive Nguyen Phuoc Thanh wrote in a report published on Tuesday by the Banking Times newspaper.

Bank, card firms link up with merchant network

The network is operated by 20 commercial banks including all the giant state-owned ones like Vietcombank, Agribank, VietinBank, BIDV, and Eximbank, and has 131 merchants in the city alone.

Exposure brings State-owned banks under scrutiny

Although Vietcombank and Vietinbank have already made initial public offerings and listed shares on the stock exchange, the nominally ‘joint-stock’ banks continue to be substantially State-owned. The central bank decision aims to gauge the progress of these banks to reorganise under a corporate model, as well as evaluate the role of State capital representatives in the management of the banks.

High interest rates freeze credit growth

“Credit growth at our bank has stopped for a month”, said Nguyen Phuoc Thanh, general director of Vietcombank. Although Vietcombank still has credit room, the listed lender has been skeptical to boost up credit growth on concerns of credit risks as lending interest rates climbed up to 20% p.a, he said.

Banks lower deposit interest rates after agreeing to cap

Techcombank lowered rates to 13.45-13.95 per cent and SCB and Eximbank to below 15 per cent. Two State-owned giants, Vietcombank and BIDV, cut their rates to 14 per cent. However, most of them set their maximum rate at around 15 per cent, though only for deposits of up to three months, indicating possible apprehension that rates may drop after Tet (the Lunar New Year) in early February.

Bank shares help boost trades

Banks now have until December 31, 2011, to register charter capital of at least VND3 trillion (US$141.7 million). Eximbank (EIB), Vietinbank (CTG), Vietcombank (VCB), Ha Noi Housing Bank (HBB) and Sai Gon-Ha Noi Bank (SHB) all jumped to their ceiling prices, while Asia Commercial Bank (ACB) rose by 6.2 per cent and Sacombank (STB) gained 4.3 per cent. HBB, with over 16 million shares sold, and STB, with nearly 15 million, were also the two most-active shares nationwide.

Four banks licensed to offer public shares

Part-privatised Vietcombank will now issue more than 436 million VND10,000 shares to all its shareholders at a ratio of 100:33. Vietcombank Securities is the underwriter. The issue will increase Vietcombank's charter capital to VND17.59 trillion (US$837.61 million) or by 33 per cent and is expected to help increase the bank's capital adequacy ratio (CAR) to 9-10 per cent from 8.45.

Vietnam banks increase protection for cash machines

Le Huynh Ha, ATM service manager at Vietcombank, said his bank has decided to close all ATM kiosks at vunerable spots at around 10 p.m. According to the bank’s website, it has nearly 1,250 machines around the country. Many other banks are also strengthening protection for their cash machines with some reducing the amount of cash they leave in each machine.

Blue chip rally slows share falls

Blue chips turned positive, with insurer Bao Viet Holding (BVH) rising by VND1,500; software producer FPT Corp (FPT), Vietcombank (VCB) and Masan Group (MSN), each rising by VND1,000; Vietcombank (VCB), rising by VND800; steel producer Hoa Phat Group (HPG), rising by VND300; and Eximbank (EIB), rising by VND100. Other big stocks of Ocean Group (OGC) and Sacombank (STB) closed unchanged.


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