Foreign-invested banks in Vietnam reported a considerable rise in their profits in 2011 despite the economy recession.
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| Foreign-invested banks gained huge profit (illustrative photo) |
On March 29, HSBC Bank in Vietnam announced that its pre-tax profits in 2011 had risen 40% compared to 2010.
Standard and Chartered Bank also announced its revenue had increased for a ninth consecutive year with revenue of USD17.64 billion and an operating profit margin of USD6.78 billion.
The total profit of retail banking sector increased 26%, with profits from the institutional banking sector reached five billion.
A Standard Chartered Bank representative said, "This achievement was due to strong capital, healthy liquidity and diversified revenue from emerging markets in Asia, Africa and Middle East."
According to the State Bank of Vietnam in Ho Chi Minh City the business results for foreign-invested banks, foreign bank branches and joint venture banks had registered a four-fold jump from the same period in 2010.
The total of outstanding credit of the whole banking sector rose 6.3%, with joint venture banks rising 3.75% and foreign banks gaining 9.04%.
The foreign credit institutions occupy 11.5% of capital mobilization market share in 2010 but it has increased to 20.6% while state-owned bank shares decreased 0.67% and the joint stock banks' share only increased 14.3%.
