Foreign banks remain tight-lipped about their profits

Source: Pano feed

VietNamNet Bridge – Vietnamese banks have announced their profits and results of operations in 2014, but foreign banks have been silent.


Vietnam has five 100% foreign-owned banks – HSBC Vietnam, Standard Chartered Vietnam, Shinhan Vietnam, ANZ Vietnam, and Hong Leong.

In addition, there are four joint-venture banks, 51 foreign bank branches and 49 representative offices of foreign banks and two wholly foreign-owned financial companies, including Home Credit and Prudential.

However, after many years of operation in Vietnam, losses or profits of these banks are still not known because their statistics have rarely been made public.

After five years of operation in Vietnam, Standard Chartered Vietnam has announced its total sales and profits only once, in 2010, with pre-tax profit of $4.2 million.

The profits published by HSBC Vietnam most recently were business results in 2012, with profits of nearly VND1.9 trillion ($90.5 million).

Banking experts said the profits of foreign banks in Vietnam over the years had been very good. For example, HSBC, with charter capital of only VND3 trillion in 2012, had a profit of VND1.9 trillion.

According to experts, the huge profits earned by foreign banks in Vietnam mainly comes from share trading, consulting affairs, arranging bond issuance affairs, retailing, foreign currency trading, and support to foreign-invested enterprises.

In the field of arranging bond issuance and stock trading, foreign banks have most of the major customers.

For example, last November, HSBC, Standard Chartered Bank and Deutsche Bank acted as the management group for the issuance of international bonds of $1 billion for the Government of Vietnam, with relatively low interest rates.

In early December 2014, Standard Chartered and Societe Generale Corporate and Investment also supported Masan Consumer to successfully issue VND2.1 trillion of bonds, with the guarantee from CGIF of ADB.

In addition, a series of international bond issuance affairs of large corporations in the previous years as Vinacomin, Vingroup, BIDV and others were also arranged by foreign banks in Vietnam.

In the field of retail, investment, and corporate sponsorship, the operations of foreign banks is also very strong. Specifically, while ANZ, HSBC, Citibank and others are promoting retail banking services, Standard Chartered Bank, Credit Suisse, Deutsche Bank, Morgan Stanley (and HSBC) are promoting investment.

The lucrative market is being quietly occupied by foreign banks, shown by the great profits of foreign banks in Vietnam recently.

Dau Tu

Đăng ký: VietNam News