Commercial banks report big profits in first half

VNStockNews.com - Figures from Vietnamese commercial banks showed they have made big pre-tax profits in the first half of the year, a banker said Wednesday.

"This is an encouraging signal for the economy as it shows Vietnam's economy is recovering," said Dao Trong Khanh, chief executive of the 1-year-old Tien Phong Commercial Joint Stock Bank. "The banking sector often recovers before others in the economy."

The state-run Thanh Nien newspaper said first-half gross profit at Vietcombank, Vietnam's largest partly private lender by assets, made 2.45 trillion dong (138 million dollars) in the first half, 75% of its annual target.

The Asia Commercial Bank reported a pre-tax profit of 1,200 billion dong.

It was followed by the Sai Gon Thuong Tin Joint-Stock Commercial Bank, whose pre-tax profit was 905 billion dong, while pre-tax profit for the unlisted Viet Nam Export and Import Commercial Joint Stock Bank was 813 billion dong.

Senior Vietnamese economist Le Dang Doanh said Vietnamese banks also reported profits last year while the economy was in recession and the stock market fell about 70%.

"This is an abnormal thing that can't be explained," Doanh said. (DPA)