By Thuy Trieu – The Saigon Times Daily
HCMC – Despite the dreary performance of the stock market, banks are among a few listed firms that fared the best in the second quarter, according to dozens of consolidated financial reports that have been made public.
VietinBank (coded CTG on the southern bourse) in January-June obtained VND2.59 trillion in profit, taking up its first half pre-tax profits to VND3.62 trillion, or 71% of its plan for the entire year.
For Vietcombank, another leading bank in Vietnam, its pre-tax profits in the first six months was over VND3 trillion, rising 8.2% from the same period last year. Meanwhile, Eximbank earned VND1.69 trillion, soaring 86% year-on-year, and Sacombank posted VND1.49 trillion in pre-tax profits, leaping 37.8% year-on-year.
Even their credit operations yielded good results at a time when the central bank is tightening money supply.
Eximbank’s gross earnings from credit operations rose by 95% year-on-year, while Sacombank posted an increase of 92%, VietinBank 74%, and Vietcombank 28.3%.
The leader of a joint-stock bank said that credit operations still generated income for banks because such institutions acted as intermediaries and they would raise the lending rate for an agreeable margin if the deposit rate increased.
Hochiminh City Securities Co. (HSC) commented that banks unlike some other sectors often had greater flexibility in business to generate profits. The broker said the good performance of banks could be due to some reasons, such as forex gains from volatility in the first quarter may have offset trading losses elsewhere.
Until this far, only 30 companies listed on the southern bourse have submitted their consolidated financial reports. Apart from banks as the best performers, those enterprises that could pass on higher cost to consumers have posted high profits and attained their half year’s targets.
Vinamilk (VNM) in the first half attained pre-tax profits of VND2.47 trillion, increasing 20.3% year-on-year. Meanwhile, Hoa Phat Group (HPG) posted its first-half pre-tax profit of VND1.16 trillion, increasing 58% from the same period last year.
HSC expected several big players on bourse by end-June would have realized half of their full-year targets this year, including VCB, VNM, CTG, ACB, EIB, DPM, HPG, PVD, PHR, PVI, and PNJ.
According to finance information provider Vietstock, by July 23, among 75 companies on Hanoi and HCMC bourse having announced the second quarter results, up to 36 companies reported lower profits year on year while eight other incurred losses.
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