Hanoi (VNS/VNA) - Banks are reporting better profits forthe third quarter this year, with Vietcombank leading the way despite thepredicted slowdown in credit growth.

In the first nine months, Vietcombank announcedprofit before tax of 7.2 trillion VND (741.1 million USD), up51.9 percent compared to the same period of 2018, 85.4 percent of the year'splan.

With consolidated profitbefore tax of 17.59 trillion VND, up 50.6 percent over the same period,Vietcombank is expected to get higher profit than its goal of 20 trillion VND
As another state-owned bank,Agribank announced its first eight months' profit before tax of 8.82 trillion VND,fulfilling 80.2 percent of the year's plan, setting the bank up for thepossibility of exceeding its profit goal.

Among the private banks, Sacombank reported profitbefore tax of 2.49 trillion VND, up 89.5 percent compared to the same periodof 2018, reaching 94 percent of its year’s plan.

By September 30 this year, Sacombank’s totalassets hit 450.2 trillion VND, up 10.9 percent from the beginning ofthis year. Sacombank's sources of income continued to grow steadily, of whichservice revenue grew 21.1 percent, currency exchange revenue grew 35 percentand revenue from other activities 176.2 percent.

Sacombank’s bad debt ratio fell from 2.11 percentto 1.96 percent. Currently, Sacombank must spend on its restructuring projectapproved by the State Bank, thus its shareholders expect to receive nodividends in this period, despite large profits.

Tien Phong Bank (TPBank) reported profitbefore tax of 2.4 trillion VND in the first nine months, up 50 percentfrom its same term last year, reaching more than 75 percent of the year’s plan.The bank's mobilisation also exceeded 138 trillion VND, up 22percent from last same term.

In the same period, MBB reported 7.08 trillion VND, anincrease of 28.5 percent. By September 30 this year, Military Commercial JointStock Bank MBB's total assets reached 385.5 trillion, up 9.37 percent from thebeginning of this year.

Though not yet officially announced, VPBank andTechcombank expect high profits in the first three quarters too.

A recent survey from the State bank of Vietnamshowed that as of September 26, credit growth was recorded at 8.64 percent andcapital mobilisation rose by 9.03 percent against figures seen in early 2019.

The report also found the demand for loans wouldcontinue to rise, higher than the demand for payments, cards and depositaccounts.

Some 68-73 percent of credit institutions expectthe demand for banking services to surge for the rest of the year.

Notably, the survey showed the resolution ofnon-performing loans (NPL) at banks had shown positive signs, with 27.6 percentof banks reporting their NPL ratio declined in Q3 and 28.9 percent expected adrop in Q4. The rates are higher than 27.4 percent and 26.9 percent in theprevious survey conducted in June.

The survey also indicated many banks saw areduction in credit risk in the third quarter./.