14:30 | 22/02/2019 Finance - Banking
Many banks have seen their employee efficiency increase significantly, with each member of staff earning them more than 1 billion VND (43,000 USD) in pre-tax profit on average last year.
|Each employee of Techcombank earned the bank over 1.88 billion VND in revenue and 1.09 billion VND in pre-tax profit last year — Photo: Techcombank|
According to banks’ financial statements released recently, Techcombank had the highest profit per employee in the Vietnamese banking system in 2018. Specifically, each employee of Techcombank generated over 1.88 billion VND in revenue and 1.09 billion VND in pre-tax profit last year.
Techcombank’s workforce increased by 1,429 last year to 9,757, of which 9,210 were employees of the parent bank. The bank’s total consolidated revenue hit 18.346 trillion VND last year while its profit skyrocketed to exceed the 10 trillion VND threshold for the first time.
Ranking second is the performance of employees of State-owned Vietcombank. Vietcombank gained pre-tax profit of 18.3 trillion VND in 2018.
However, due to the large staff size of up to 17,216 employees, each Vietcombank employee generated over 1.06 billion VND in pre-tax profit. Though the bank’s employee efficiency improved compared to the previous year, it remained lower than that of Techcombank.
As for two other State-owned banks – VietinBank and BIDV, since their profits this year were lower than some private banks, while the number of employees increased, the average performance earning of each employee was low.
Specifically, each employee of Vietinbank in 2018 generated 281 million VND on average as the bank achieved consolidated pre-tax profit of only 6.8 trillion VND, nearly 2.5 trillion VND lower than in the previous year, while the total number of employees by the end of 2018 was 24,197, up 413 against the previous year.
With BIDV, its consolidated pre-tax profit was nearly 9.5 trillion VND, up 800 billion VND against the previous year, while the size of the workforce was large. Each employee thereby only generated around 373 million VND of profit for the bank.
Another private bank also gaining high profit of nearly 9.2 trillion VND last year was VPBank. However, also due to a combined staff size of 27,429 (of which FE Credit and its subsidiaries account for nearly 16,000), each employee of the bank generated only 335 million VND in pre-tax profit.
After years of restructuring, ACB was also a private bank with high employee efficiency. The bank recorded profit of nearly 6.4 trillion VND last year so each employee of the bank generated more than 580 million VND on average in 2018.
Other banks also recorded an improvement in employee efficiency last year, which has partly helped them gain significant profits.
According to industry insiders, business performance per employee of banks partly shows the current status of each bank in the system. They attributed the improvement to the banks’ focus on restructuring in recent years.
Nghiem Xuan Thanh, Vietcombank Chairman, said the bank’s management has drastically restructured and reorganised the personnel system for effective operation over many years.
Vietcombank has also built key performance indices (KPIs) for each employee, thereby enabling each person to have the opportunity to develop their full capacity, he said.