Three leading banks yesterday announced mid-year earnings results, as analysts begin assessing the health of the financial sector in the wake of recent price wars and monetary tightening.
The Technological and Commercial Joint Stock Bank (Techcombank) announced they had gained VND314.8 billion (US$19.6 million) in pre-tax profit for the first six months of 2007. Two State-owned giants Vietcombank and the Bank for Investment and Development of Viet Nam (BIDV) also announced their performance in capital mobilisation and loans.
Banks over the past couple months have increased rates on term deposit to raise capital before the seasonal surge in loan demand toward the end of the third quarter.
The situation has been complicated by recent monetary tightening by the State Bank of Viet Nam, which has increased reserve requirements in an attempt to ease inflationary pressure.
How loan growth will develop in the second half of the year will depend on which banks have the capital to splurge and how much risk they are willing to assume.
Source: VNS
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