A transaction office of Vietcombank (Photo: VNA) Hanoi (VNA) – The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has been named the Best Domestic Bank in Vietnam, the Best Bank for SMEs in Vietnam and the Most Outstanding Company in Vietnam – Financial Sector by Asiamoney magazine. With this, Vietcombank continues affirming its effective performance in domestic market, towards becoming among the top 100 banks in the region, the world’s top 300 banking-financial organisations up to international practices by 2020. Vietcombank surpassed the dairy giant, becoming the champion in after-tax profit with a growth rate of 60 percent. Vietcombank posted the highest pre-tax profit among the Vietnamese banks in the first six months of this year, raking in more than 11.04 trillion VND (474.7 million USD), up 43.1 percent year-on-year. The figure helped Vietcombank become the first bank in Vietnam to record pre-tax profit … [Read more...] about Vietcombank receives three awards by Asiamoney
Joint stock commercial bank for foreign trade of vietnam
All banks in the country have to adopt the standard version of Basel II and then switch to the advanced version by 2025. — Photo baokiemtoannhanuoc.vn In 2016 the State Bank set a deadline of January 1, 2020, for 17 banks to meet Basel II norms under a national banking sector development strategy. Also, by 2025 all banks in the country have to adopt the standard version of Basel II and then switch to the advanced version. Basel II is the second edition of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on banking supervision. It comprises minimum capital requirements, supervisory review and market discipline to enhance competition and transparency in the banking system and make banks more resistant to market changes. Basel II requires banks to have a capital adequacy ratio (CAR) of at least 8 per cent. However, the SBV has allowed 10 banks to adopt Basel II standards earlier than the 2020 deadline. They are Joint Stock … [Read more...] about Basel II deadline rapidly approaching, are banks on course to meet norms?
VietinBank will have a new partner after its current partner Britain’s Aviva insurer finalises the sale of its business in Vietnam (Photo: VietinBank) Hanoi (VNS/VNA) - The Vietnamese insurance market is heating up with many high-value bancassurance deals and mergers and acquisitions (M&A) unveiled recently. Roughly half a dozen big names, including Allianz, Nippon Life, MS&AD Insurance, Sun Life Financial and Manulife Financial Corp are vying to buy the Vietnamese and Singaporean businesses of Britain’s Aviva, Reuters cited people with knowledge of the matter as saying last week. According to the sources, who declined to be named as the talks are confidential, the combined deal value for the businesses is estimated to be between 2 billion USD and 2.5 billion USD. Talks were at an early stage and terms could change, they said. In Vietnam, Aviva started operating in the life insurance in 2011. It was formerly known as VietinBank Aviva – a joint venture between … [Read more...] about Vietnam’s insurance sector catches foreign attention
Instead of borrowing foreign currency from banks, firms have to buy it from banks from October 1 this year (Photo: VNA) Hanoi (VNS/VNA) - Experts suggested firms use more derivative instruments, such as futures and forward contracts, to minimise exchange rate risks when they can no longer borrow the US dollar from commercial banks, starting early this month. According the central bank’s new regulation, banks have been banned from lending in foreign currency to pay for imports since October 1 this year in a bid to limit dollarisation in the local economy. From that date, instead of borrowing foreign currency from banks, firms have to buy it from banks. The regulation applies to both domestic banks and branches of foreign banks in Vietnam’s lending to anyone who is a Vietnamese resident. Previously, importers were allowed to take out loans in foreign currencies to pay for imports if they could prove they can generate enough foreign currency from their production and … [Read more...] about Derivative instruments recommended to minimise exchange rate risks
A transaction office of Vietcombank (Photo: VNA) Hanoi (VNA) – Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) reported nearly 17.6 trillion VND (757.59 million USD) in consolidated profit in the first nine months of this year, surging 50.6 percent from the same time last year and reaching 85.8 percent of the yearly plan. The bank announced on October 7 that its before-tax profit reached 17.25 trillion VND, a year-on-year increase of 51.9 percent. In the nine-month period, Vietcombank’s total capital mobilisation was estimated at 998.24 trillion VND while outstanding debt stood at 709.12 trillion VND, up 11.6 percent as compared to the same time in 2018. The return on average assets (ROA) and the return on average equity (ROAE) were 1.65 percent and 25.75 percent, respectively, much higher than the previous year. In addition, more than 2.86 trillion VND in the bank’s off-balance sheet debt was recovered during January-September, or 82 … [Read more...] about Vietcombank posts record profit of nearly 757.6 million USD