HCM City Banks’ Profits Drop 71.5% On-year in Jan- Oct: Official

Commercial banks in Ho Chi Minh City, Vietnam’s biggest economic hub, saw their profits in the first ten months of this year plummet 71.5% from the same period last year, said deputy director of the central bank’s HCM City branch.

Losses in gold trading, rising provisions for credit losses, and slow credit expansion were the main causes to the poor performance of lenders in the city, the Dau Tu Chung Khoan newspaper cited the official as saying.

By the end of October, the bad debt ratio at the city’s commercial banks stood at 6.2%, compared to the figure of 8.6% of the country’s whole banking system announced by the central bank. Credits grew over 2% while total deposits increased by 6.2% from end-2011.

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