HA NOI (VNS) — Vietinbank's bad debts reached about VND6.3 trillion, or US$300 million, on March 31, an increase of 67 per cent over the end of last year, according to the bank's latest report released last week.
|Staff at work at Vietinbank in Ha Noi. The bank posted a 9.1 per cent drop in net revenue in Q1.
As the largest commercial bank of Viet Nam, Vietinbank posted the debt figure in its first quarter financial report. The bad debts represented 1.78 per cent the bank's total outstanding loans, rising from 1 per cent at last year-end, but remaining secure, it said.
Deposits declined 2.8 per cent and credits fell by 5.86 per cent over the first quarter, both reaching over VND354 trillion, or $16.86 billion. The total asset value was down 3 per cent at VND558.78 trillion, or $26.61 billion.
Net revenues dropped 9.1 per cent over the same period last year, reaching VND4.22 trillion, or $200.95 million. Most business activities generated profits, except for securities investments suffering a loss of VND5 billion, or over $238,000.
With risk provisional funds declining nearly 24 per cent year-on-year, pre-tax profits increased 8 per cent to reach VND1.46 trillion, or $66.52 million. After-tax profits totalled VND1.14 trillion, or $54.28 million.
In August 2013, VietinBank received approval from the State Bank of Viet Nam (SBV) to raise its charter capital from VND32.661 trillion ($1.55 billion) to VND37.234 trillion ($1.76 billion) through issuing new shares to existing shareholders.
According to the VNR500 (Top 500) ranking, Vietinbank is Viet Nam's 13th largest company. — VNS