Foreign banks scramble to increase market share
|The assets of joint ventures and foreign banks are only a tenth of the total of the entire Vietnamese system, Le Toan|
Australian lender ANZ Vietnam reported a 78% decline in profits in its 2021 consolidated financial statements, with total revenue of VND87.8 billion ($3.8 million). After selling its retail business in Vietnam to Shinhan Bank to focus on institutional banking in 2017, ANZ Vietnam’s profits fell to an all-time low. During the year, banking operations declined.
HSBC Vietnam, backed by the UK, in the same vein, has seen its profits decline over the past three years. This bank’s profit amounted to VND 1.6 trillion ($71.6 million) in 2021, down 17% from 2020. increased tenfold over the previous year, combined with slightly higher operating expenses.
HSBC Vietnam, however, still remains the country’s largest foreign bank, with total assets of VND163.7 trillion ($7.12 billion) and registered capital exceeding VND7.5 trillion ($326 million). dollars).
Hong Leong Bank Vietnam, meanwhile, reported a pre-tax loss of VND12.9 billion ($560,900) for the first six months of 2021.
Hong Leong Bank Berhad, a member of Hong Leong Group, is the first foreign bank in ASEAN to establish a wholly-owned subsidiary in Vietnam in 2009.
In contrast to the gloomy results, Shinhan Vietnam recently announced its condensed audited financial statements for 2021, which showed pre-tax profit of VND3.16 trillion ($137.4 million), a 3% increase from the previous year.
Net interest income, Shinhan Vietnam’s main source of income, increased by about 12% to about VND5 trillion ($217.4 million), due to significant growth in credit services . The bank’s net profit on foreign exchange services and transactions increased by 27.8% and 18.3%, respectively, during the same period in 2021.
After a nine-month pre-launch preparation period, subsidiary Shinhan Life also began its first forays into Vietnam’s booming insurance market last month, contributing to a comprehensive Shinhan Group ecosystem in that country. from Southeast Asia.
According to Shinhan Life Vietnam CEO Lee Eui Chul, the company would focus on bancassurance services first and then shift to telemarketing and digital marketing in the future.
Koreatimes reported that South Korean banks’ overseas operations saw profits jump nearly 62% in 2021 from a year earlier on the back of higher interest income.
Specifically, operations in Cambodia saw the highest profit growth of $290 million, followed by those in Hong Kong with $214 million and those in Vietnam with $172 million, the financial watchdog cited. from South Korea.
Meanwhile, Kuala Lumpur lender Public Bank has maintained a healthy growth rate in Vietnam over the past six years, with profits steadily rising. Public Bank Vietnam’s pre-tax profit was VND476 billion ($20.7 million) in 2021, an increase of 13% from the previous year.
According to statistics compiled by the State Bank of Vietnam (SBV), the total assets of joint ventures and foreign banks in Vietnam accounted for only about 10.4% of the total assets of the entire banking system, the end of September 2021. .
In the second quarter of 2021, the SBV estimated that the return on assets ratio of foreign banks was 0.37%, lower than the ratios of public banks (0.55%) and private banks (0.87%).