Tin mới
Out of the blocks (15/6)
15/06/2011 - 10 Lượt xem
HSBC Vietnam and Standard Chartered Bank Vietnam - at the time of writing - were the first two of the three foreign-invested banks in Vietnam to release their business results for 2010. The third, ANZ Vietnam, said in late April that they “have not yet finished their report.”
This is the first time 100-per-cent foreign-invested banks have released their figures since incorporating in 2009. Despite 2010 being a crunch time for most businesses in Vietnam, both HSBC and Standard Chartered Bank generated significant profits.
This is the first time 100-per-cent foreign-invested banks have released their figures since incorporating in 2009. Despite 2010 being a crunch time for most businesses in Vietnam, both HSBC and Standard Chartered Bank generated significant profits.
Growing strongly
The most familiar bank brand in Vietnam, HSBC, was the first to release their business results. Pre-tax profits were up VND389 billion ($19.4 million), or 38 per cent, to VND1,407 billion ($70 million), with net operating income before loan impairment charges up VND553 billion ($27.6 million), or 24 per cent, to VND2,961 billion ($148 million). Significantly, loan impairment charges were down by VND74 billion ($3.7 million), or 43 per cent, to VND97 billion ($4.8 million) - the lowest since incorporation. Overall, total assets as at December 31, 2010 were up VND11,312 billion ($565 million), or 31 per cent, to VND47,826 billion ($2.4 billion).
Standard Chartered also delivered a strong performance in 2010, with income rising 243 per cent compared to 2009, and showed a highly-liquid balance sheet and strong capital position. Its net operating income before loan impairment charges increased to VND766,294 million ($40.5 million) while its pre-tax profit were VND80,386 million ($4.2 million). Significantly, its total assets were VND16,641,407 million ($879 million) as at December 31, 2010 - much larger than HSBC Vietnam.
Though it is smaller than Standard Chartered in terms of total assets, HSBC Vietnam can be proud that its pre-tax profit was much larger than its rival. Both have long histories in Vietnam. While HSBC has been in Vietnam for 140 years since the bank first opened an office in Saigon - now Ho Chi Minh City - in 1870, Standard Chartered Bank’s history can be traced back to 1904 when it opened its first branch in Saigon.
While HSBC was the first foreign bank to become a locally incorporated entity, on January 1, 2009, as HSBC Bank (Vietnam) Ltd., Standard Chartered commenced operations as its locally incorporated entity - Standard Chartered Bank (Vietnam) Limited - following official approval from the State Bank of Vietnam (SBV), effective August 1, 2009.
In terms of capital advantage and liquidity position, HSBC Vietnam’s capital adequacy ratio (CAR) as defined under SBV Circular No 13/2010 was 13 per cent compared to the central bank’s minimum requirement of 9 per cent. In 2010 HSBC Vietnam also maintained a distinctive liquidity position as it held VND26,397 billion ($1.3 billion) in customer deposits. “Ratio of lending to mobilised sources of funds as defined under Circular 13/2010 was strong and stood at 60 per cent at December 31, 2010 compared to the SBV’s cap of 80 per cent,” the bank said.
Whilst 2010 was a tough year for most enterprises, HSBC Vietnam diversified its business model and delivered profits despite the challenges in the market by continuing to support its customers’ business growth, with additional net lending in 2010 of VND4,793 billion ($239 million). In particular, it was profitable in business segments such as commercial banking, global banking and markets, trade and supply chains and securities services.
It continued to build its personal financial services (PFS) business and improve customer convenience by expanding its network to 14 outlets and 150 ATMs. “HSBC in Vietnam continued to grow strongly throughout 2010 despite market challenges, while sustaining its capital strength and a strong liquidity position,” said Mr Thomas W. Tobin, CEO of HSBC Vietnam.
Standard Chartered Bank Vietnam, meanwhile, maintained a strong capital position that exceeded VND3 trillion ($150 million) as at December 31, 2010. Its CAR was materially above the minimum 8 per cent required by SBV. “Total assets of the Bank posted significant growth of 47 per cent and total liabilities grew 31 per cent, while the balance sheet remained highly liquid,” the bank said in a statement released late last month. “The revenue growth was broad-based across all businesses, underpinned by gains in market share and new capabilities across products and segments.”
Standard Chartered Bank Vietnam continued to invest in its people, infrastructure, distribution network and new businesses to capture market opportunities and meet client needs. Its workforce increased from 492 at the end of 2009 to 652 in April 2011, in all business functions in Vietnam.
Last year it launched a flagship branch in Le Dai Hanh in Hanoi, the first Priority Banking centre in the capital with extended banking hours to manage both business and personal accounts and with experienced personal financial consultants to assist and tailor customers with suitable financial solutions. “2010 was a successful first full year of operation for us since our local incorporation in August 2009,” said Mr Louis Taylor, Vice Chairman and General Director of Standard Chartered Bank (Vietnam). “With good growth in operating profit, a very strong capital position and a highly liquid balance sheet, I strongly believe we will continue to build on this excellent start to the business.”
However, with the current economic conditions, analysts believe that 2011 will not be easy for foreign banks in Vietnam. In its latest report on the Asia-Pacific region, Mr Frederic Neumann, HSBC’s Co-Head of Asian Economics Research, said that while Asia’s growth prospects remain solid, the start of 2011’s second quarter will be challenging. Inflation is already dampening domestic demand and strong exports remain vulnerable to global supply chain shifts and volatile US demand.
Regarding Vietnam, Mr Neumann said: “Inflation continues to accelerate while the trade deficit remains large. This sharp acceleration in inflation in recent months is likely to continue to at least the second quarter as the government tries to bring retail energy prices to levels that allow distributors to have a sufficient profit margin.”
Last month also saw a new policy from SBV that may hinder foreign banks’ business in 2011, as they are asked to limit 2011 credit growth. The SBV requires foreign-owned banks and foreign bank branches to make plans to confine their 2011 credit growth to less than 20 per cent compared with last year, with the exchange rate factor taken into account. In particular, credit operations comprise lending, discounting, finance leasing, factoring, underwriting, and other forms of granting credit.
Still, both Mr Taylor and Mr Tobin remain confident. “Over the years Standard Chartered has demonstrated that we are ‘Here for good’ and our focus has always been on the long-term and sustainable growth of our business in Vietnam,” Mr Taylor said. For Mr Tobin, “HSBC sees Vietnam as an important part of its emerging markets strategy and is pleased to be contributing to the development of a robust and vibrant market for financial services.”
Source: VNEconomy.
