VINACHEM

Vietnam Report has released its Vietnam Profit 500 with a number of categories like Top 10 Most Profitable Companies and Top 15 Most Profitable Private Companies.

This year’s Vietnam Profit 50 honours major groups and corporations, including Petrolimex, Samsung, Viettel, Vingroup, Vinamilk, and Vietjet.

The Top 10 Most Profitable Banks includes Vietcombank, Vietinbank, Techcombank, VPBank, HDBank, MB, and ACB.

According to the report, the inclusion and ranking of the companies in this list are objectively and independently based on the weighted score of several main indicators reflecting their profitability such as ROA, ROE, ROR, pre-tax profit and revenue.

The companies appearing in Vietnam Profit 500 were capable of generating healthy profits and contributing to the overall economic development of Vietnam, thus supporting the promotion of Vietnamese brands both at home and abroad.

In the 2019 Vietnam Top 10 Most Profitable Companies in Banking, Finance and Securities, banks continue to be in the spotlight as the thousand-billion club is in permanent churn with Techcombank, MBBank, VPBank, and even the emerging star HDBank on the rise.

Vietcombank extends its reign after amassing consolidated profit before tax of over VND17.59 trillion (US$758.93 million) in the first nine months of the year, a 50.6 per cent surge year-on-year and 85.8 per cent of its target for this year.

Separate profit before tax jumped 51.9 per cent to VND17.25 trillion, 85.4 per cent of its target.

Its ROE and ROE stood at 1.65 per cent and 27.75 per cent, well above the industry average and marking a significant increase from 2018.

Following in second and third places in this ranking are Agribank and Techcombank.

Despite being a State-owned bank and reporting unflattering business results in previous years compared to other public banks, Agribank posted VND9.7 trillion ($418.7 million) in profit before tax for the first nine months of the year, 88 per cent of the 2019 target and higher than full-year profit in 2018.

Techcombank reported VND8.86 trillion ($382.46 million) in profit before tax, a 14 per cent increase.

In the third quarter, its profit before tax surged 24 per cent year-on-year to VND3.198 trillion.

MBBank reported a 26.6 per cent increase in profit before tax to VND7.616 trillion in the first three quarters while VPBank generated VND7.199 trillion in profit, achieving 76 per cent of its full-year target.

At HDBank, its significant recent growth and impressive business results were further corroborated in Q3/2019 as profit before tax skyrocketed by 51 per cent year-on-year.

For the first nine months, the bank announced a record profit before tax of VND3.448 trillion ($148.8 million).

With this, its ROA and ROE stood at 1.7 per cent and 20.2 per cent, taking it into the list of most profitable banks.

Moreover, its net income margin was 4.6 per cent, which ranked it among the top three listed banks, while its asset quality continued to surpass the industry average with its separate non-performing loan ratio remaining at 1.1 per cent

Apart from its ranking of companies, VNR also evaluated other criteria, like business environment and potential growth. In the latter category, banking is projected to be the fifth fastest growing industry between 2020 and 2025. VNS