Vietinbank posted a profit of over VND3 trillion (US$163 million) in 2009, 16 percent higher than initially targeted for the bank's first year after equitisation, the bank announced yesterday, January 10.
As of December 31, the Ha Noi headquartered bank had total assets of VND240 trillion ($12.97 billion), up 24 per cent from the previous year.
Deposits totalled VND221.7 trillion ($11.98 billion), up 26.7 percent from the previous year, while outstanding loans reached VND218 trillion ($11.78 billion), up 24.6 percent. Loans given out under the Government's subsidised-interest loan programme amounted to VND59.66 trillion ($3.22 billion), or 36.8 per cent of the subsidised loans issued by banks nationwide.
Bad debts accounted for VND967 billion ($52.27 million), or 0.6 percent, of total outstanding loans.
After Vietinbank joined international remittance services like e-Remit and Western Union last year, total remittances from abroad paid via Vietinbank in 2009 reached $920 million, giving the bank an estimated 15 percent of this market.
The bank, although reorganised as a joint stock commercial bank and listed on the HCM City Stock Exchange under the code CTG, is still over 89-per-cent owned by the State. In its initial public offering on December 26, 2008, the bank sold shares representing 6 per cent of equity at an average price of VND20,265 ($1.20) per share. Remaining shares were sold to domestic strategic investors and employees.
CTG shares closed at VND29,300 on the HCM City stock market last Friday.
Vietinbank is the second State-owned bank to go public, following Vietcombank in 2007. Among other IPOs planned are the Bank for Investment and Development of Viet Nam (BIDV), Agribank and Mekong Housing Bank.
Just six banks, Eximbank, Sacombank, ACB, Sai Gon-Ha Noi Bank, Vietcombank and Vietinbank - out of nearly 40 commercial banks nationwide - have shares listed on one of Viet Nam's two stock exchanges.
In 2010, Vietinbank has targeted achieving total assets of VND300 trillion ($16.21 billion), up 25 per cent year on year, a profit of VND4 trillion ($216 million); and total deposits up 30 per cent. Vietinbank also announced yesterday that it had submitted a short list of foreign strategic investors to the Government to which it would sell a 10-per-cent of stake.