Vietnam's commercial banks report high profits in 2017

14:49 | 08/01/2018 Economy

 Vietnam’s commercial banks reported solid results for 2017 with the total after-tax profit estimated to grow 44.5% from the previous year, according to an independent report of the National Financial Supervisory Commission.

BIDV posts the record high of US$387.2 million in pre-tax profit in 2017

The Bank for Investment and Development of Vietnam (BIDV) has posted the record high of VND8.8 trillion (US$387.2 million) in pre-tax profit last year. By the end of 2017, the lender’s total asset reached VND1,176 trillion, an increase of 16.7% from 2016, affirming itself as one of the country’s largest banks.

Its capital mobilisation expanded 17.9% year-on-year to over VND1,106 trillion, including more than VND934 trillion in deposit from businesses and individuals, up 17.4%.

The Bank for Foreign Trade of Vietnam (Vietcombank) also announced the record profit of about VND10 trillion in 2017, up 20% and 8.7% higher than the bank’s yearly target. It is the highest figure recorded thus far.

With a credit growth of 18% last year, it is natural for the banks to achieve such growth, said economist Nguyen Tri Hieu.

Additionally, recent restructuring and improved risk management signalled another good year for the banking industry.