The bank profit ranking 2018 has changed

In the system, grouping according to public understanding as well as in administrative statistics, commercial banks with dominant State ownership are still classified as state-owned commercial banks.

This group includes Bank for Agriculture and Rural Development (Agribank, not equitized), Bank for Foreign Trade (Vietcombank), Bank for Investment and Development (BIDV), Industrial and Commercial Bank (VietinBank) and three cities. The State Bank member bought back for 0 dong. read more

The group that has no dominant state ownership is classified as a joint stock commercial bank group; Usually a "private" element is added to further distinguish it.

With a long history and large-scale characteristics, the dominant traditional market share, the state-owned commercial banks always lead and dominate the scale of profit.

But, from 2018, most business results have been updated and aggregated information shows that the "rankings" of profitability of Vietnamese banks have had great disturbance.

For a long time, in public access, profits of banks are often compared by absolute numbers alone, although this comparative professional analysis does not make much sense.

Instead, basic indicators such as ROA and ROE reflect more closely than performance rankings; or indicators of capital adequacy, asset quality and bad debt, efficiency of working according to per capita ... for a more similar comparison.

But, over the years, comparing the scale of profit simply by absolute numbers becomes ... habit. And from here on, the positions in the "rankings" are determined by the number of profits achieved, although the largest number is not necessarily the most effective.

However, looking at the absolute numbers, the scale of system profits of Vietnamese commercial banks in the past year has been greatly disturbed, with the official dominance of private commercial banks.

Leading the scale, Vietcombank with over VND 18,000 billion affirmed its No. 1 position in profitability, has a big difference compared to all other members.

The biggest disturbance in 2018 is in second place. For the first time in history, the system noted that BIDV and VietinBank were no longer overwhelming in this position, but had to make room for a member from a private joint stock commercial bank.

With updated estimates up to this point, the second position belongs to Techcombank (Techcombank). According to VnEconomy, Techcombank has exceeded the profit target last year, marking the first time in history that private banks have exceeded VND 10,000 billion.

Accordingly, due to not officially announced by the financial statements, it is likely that BIDV and VietinBank have backed down to lower positions on the "rankings".

Notably, the state-owned commercial banks are members with total assets of over VND 1 million, the dominant traditional market shares. While Techcombank has an estimated total assets of less than one third of each group member.

Similarly, the scale of total assets is much lower than that of the state sector, and although it is expected to be lower than the beginning of the year due to a "offside" part of the credit growth prospect of the year, the State Bank does not Suspicious, estimated profit of Prosperity Bank of Vietnam (VPBank) still exceeded the VND 9,000 billion mark.

As VietinBank has not yet announced the 2018 profit figure after adjusting its plan, it is likely that VPBank will be the next big disorder from the private sector, surpassing VietinBank and next to BIDV to rank fourth.

Thus, merely about the absolute profit figures, the top 5 "rankings" in 2018 have changed dramatically from history, with the case of Techcombank and VPBank.

In the private joint-stock commercial banks, the 2018 profit positions also continue to show that the gap is getting bigger and bigger among the adjacent members.

In the years 2011 - 2015, the general difficult period of the system, Military Bank (MB) continuously maintained stable profit scale to hold the leading position in private commercial banks. But in recent years and until 2018, "rankings" have changed dramatically.

Despite exceeding the plan last year, but with a big difference, MBbank was no longer a member of direct competition in profit scale compared to Techcombank and VPBank. And this is also a disturbance on the 2018 "ranking".

Looking beyond many years ago, the position of profits in the private joint-stock commercial bank until 2018 has also changed greatly, when the previous leading members such as Saigon Thuong Tin Bank (Sacombank) and Export-Import Bank (Eximbank) cannot return yet.

After the turmoil, 2019 only started but could estimate the "ranking" of profits of Vietnamese banks will continue to change.

Even in 2018, Agribank emerged with a record of profit of over 7,500 billion which will be the case to be followed up. Meanwhile, if BIDV soon completes its plan to sell capital to foreign countries, the prospect of a breakthrough can then create a phenomenon in 2019. read more https://tygia.vn/gia-vang