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Rankings of large banks may change   2010-05-11 - VnExpress

To date, state-owned banks have been considered to be the biggest banks in Vietnam. The rankings may soon shift, however, as large joint-stock banks may surpass state-owned banks in terms of operations efficiency and scale in three to five years.


In 2009, Vietcombank gained 5,004 billion dong in profit, the highest among state-owned banks (Vietcombank is now operating as a joint-stock bank after it was equitised in 2007, but it is still considered to be a state-owned bank, since the State holds 90 percent of the stakes).


The bank is forecast to be unable to maintain profit growth in 2010: it plans to obtain only 4,500 billion dong in 2010, a decrease of 10 percent from 2009.


As for Vietinbank, another state-owned bank, their pretax profits in 2009 were 3,373 billion dong, and they anticipate 4,000 billion dong in 2010, an increase of 18.6 percent.


Meanwhile, joint-stock banks believe that they can maintain a high profit growth rate. In 2009, Asia Commercial Bank (ACB) made 2,838 billion dong and it expects 3,600 billion dong in 2010, an increase of 27 percent. The figures for Techcombank are 2,263 billion dong and 3,467 billion dong, increasing by 54 percent. For Sacombank, the numbers are 1,901 billion dong and 2,400 billion dong, increasing by 26 percent.


With such high profit growth rates, ACB and Techcombank are likely to surpass Vietinbank in two years.


Joint-stock banks not only have profit growth rates double or triple those of state-owned banks, but they also have higher asset growth rates. In 2010, Vietcombank plans to increase its total assets by 15 percent (293,820 billion dong), Vietinbank 20 percent (292,500 billion dong), while Techcombank joint-stock bank plans to increase its total assets by 56 percent (144,382 billion dong), Sacombank by 48 percent and ACB by 25 percent (210,000 billion dong).


A high ranking official of the State Bank of Vietnam (SBV) said that ACB may become the first joint stock-bank that can list itself among the top four Vietnamese banks with highest total assets within four years, if ACB can maintain the growth rate it has had in the last three years.


If state-owned banks make big operational changes, however, things may be quite different.


One leader of a state-owned bank admitted the possibility of being surpassed by ACB in terms of total assets. He noted that the structure of joint-stock banks allows the banks to develop assets faster than state-owned ones.


Meanwhile, state-owned banks still serve as an SBV tool to implement its monetary policy, which means that they need to fulfill many important tasks assigned by the State and do not operate purely for profit.

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