Another Bank Suffers Losses In Quarter 4/2018

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Ban Viet Commercial Joint Stock Bank (VietCapitalBank) just announced the Consolidated Financial Statements in the fourth quarter of 2018 (Q4/2018). As of 31st December 2018, the bank’s total assets reached 46.566 trillion dong, up 16.7 percent compared to the beginning of the year. In particular, customer loans increased by 18.4 percent to 29.35 trillion dong; customer deposits increased by 23.9 percent to 33.495 trillion dong.

VietCapitalBank recorded a pre-tax profit of 2018 of nearly 117 billion dong, a 3-fold increase over the same period last year. In particular, the main growth period was from the beginning of the year, while business activities in Q4/2018 have declined sharply. In detail, in the last three months, the bank bore a loss of nearly 27 billion dong, mainly due to the poor performance of foreign exchange business, losing 84 billion dong although it was reimbursed with risk provision of 17 billion dong.

In 2018, the total net interest income of the bank reached 800 billion dong, an increase of 19.6 percent compared to 2017. In addition, service activities achieved a profit of nearly 34 billion dong, up 3.4 times over the same period last year. Despite of heavy losses in the fourth quarter, for the whole year, the segment result still increased by 50 percent to reach 31 billion dong.

The total operating cost in the period was 699 billion dong, a slight increase of 8.2 percent. Provision expenses increased sharply by 42 percent to 127 billion dong.

Thus, among nearly 20 banks that announced financial statements, after Saigon Joint Stock Commercial Bank (Saigonbank), Ban Viet bank is the second bank to record losses in Q4/2018.

 

Category: Finance, Vietnam

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