VietinBank looks to 15% profit growth in 2023

VietinBank, one of the “Big 4” banks in Vietnam, targets profit growth of 10-15% year-on-year in 2023, said its chairman Tran Binh Minh.

The bank’s pre-tax profit in the first quarter of this year was expected to go up 10-15%, in line with the whole year’s target, Minh told the lender’s annual general meeting (AGM) in Hanoi on Friday.

Other targets in 2023 include total asset growth of 5-10% year-on-year and non-performing loans (NPL) to credit exposure ratio of below 1.8%. As of the end of Q1, VietinBank’s NPL ratio was 1.28%, the banker said.

The bank’s credit growth reached 4.6% in Q1, nearly doubling the average figure of the banking sector, said Tran Van Tan, a VietinBank board member. For 2023, the State Bank of Vietnam set VietinBank's credit growth cap at 8.7%, compared to the achieved figure of 12.47% in 2022.

The AGM approved a plan of raising the charter capital by VND12.33 trillion ($524.79 million) through issuance of shares for dividend payment sourced from the remaining profit in 2021 and remaining accumulated profit until 2016.

VietinBank also approved the dismissal of Masahiko Oki as board member at MUFG Bank's request, and elected Koji Iriguchi as replacement, effective on June 2, 2023.

MUFG, Japan's largest bank, holds a 19.73% stake in the Vietnamese bank. Iriguchi is currently co-head of the financial planning and management division cum co-head of the strategy and change management division under the board of directors' office.

In 2022, VietinBank’s total assets jumped 18.1% year-on-year to VND1,808 trillion ($76.98 billion), beyond the target of 5-10%.

Its total deposits reached VND1,340 trillion ($57.06 billion), up 9.3%, meeting the goal of 8-10%. The NPL ratio fell from 1.14% in end-2021 to 1.08% in 2022, fulfilling the objective of below 1.8%. The bank earned a consolidated pre-tax profit of VND20.95 trillion ($891.6 million), up 19.1% year-on-year.

Regarding bancassurance, VietinBank recorded a commission of VND418 billion ($17.79 million) from life insurance and VND416 billion ($17.71 million) from non-life insurance in 2022, accounting for 26% of revenues from retailing activities.

This year, the lender targets to reap VND908 billion ($38.65 million) in insurance premiums, up 56% year-on-year.