May 16, 2012

Vietnam - Habubank's bad debt touches 9.7pct in Q1 2012


Hanoi Building Commercial Joint Stock Bank (Habubank-HBB) has recently announced its unconsolidated fiscal statement in the first quarter of 2012 whereby the bank earned the highest profit from securities investment with 212.2 billion dong, 57 fold increase over the same period last year.

The lender suffered a loss of 1.2 billion dong from forex trading activities but this figure is also a significant improvement in comparison with the loss of 95.3 billion dong of the same period last year from this segment.

However, lending activities and services that are the bank's key activities saw a strong decline. The bank's net interest income in Q1/2012 reached 136.4 billion dong, down 59 percent from the same period last year and profit from services was 4.8 billion dong, down 56 percent on year.

The lender's operation costs doubled against the same period last year, to hit over 240 billion dong. Of which, spending on salaries and allowance to staff was nearly 85 billion dong, 2.5 fold increase on year.

Especially, the bank's credit risk provision spending in Q1/2012 was up to 90 billion dong, over 21 time increase on year.

According to the fiscal statement, as of the end of Q1/2012, the bank's total outstanding loans reached 16.77 trillion dong, down 5.9 percent on year, of which, debts in categories 3, 4 and 5 accounted for 9.7 percent.

With fall in many incomes amidst highly surging costs, the bank's after tax profit in Q1/2012 was 29.3 billion dong, down 76 percent on year.

Till March 31, the bank's total deposits reached nearly 18.65 trillion dong, down nearly 1 percent from the end of 2011, chartered capital at 4.05 trillion dong.

However, at the annual general meeting (AGM) 2012 of Habubank, Nguyen Van Bang, chair of director board said that Habubank has a debt of Vietnam Shipbuilding Industry Group (Vinashin) worth nearly four trillion dong.

VietBiz24



Business & Investment Opportunities 
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com



Dear Reader,

May I invite you to visit our new blog: IIMS-Asean http://iims-asean.blogspot.com/

News and activities of the International Institute of Medicine and Science Asean Chapter of IIMS, Inc. California, USA - Health care, Life Science, Education, Research, Philanthropy. Asean is the economic organisation of ten countries located in South East Asia: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. IIMS is a non-profit organization.

No comments:

Post a Comment