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'Big men' bank simultaneously reduced lending rates

Friday - 01/02/2019 21:35
Once again, it announced to reduce lending interest rates jointly launched by the Chairman of Agribank and Vietcombank at the conference of implementing the industry's tasks.
Vietcombank's chairman announced to reduce interest rates from today 9/1.
Vietcombank's chairman announced to reduce interest rates from today 9/1.
Conference on implementing banking tasks was held on the morning of January 9. As the first bank representative to speak, Mr. Trinh Ngoc Khanh - Chairman of Agribank's member council made "the first shot" for the commitment to reduce lending rates. He said, Agirbank will reduce 0.5% lending interest rate with priority subjects, including medium, short-term and long-term loans.

In response, Mr. Nghiem Xuan Thanh - Chairman of Vietcombank also made a reduction in interest rates and he pledged to "apply from today". Specifically, short-term loans at Vietcombank will be reduced by 0.5% lower than the ceiling rate set by the State Bank for 5 priority areas. Thus, short-term loans will have interest rates up to 6% per year. The interest rate reduction will apply to outstanding loans and new loans from 2019.

Medium and long-term loans in 5 priority areas were also reduced by 0.5%. "For Vietcombank, outstanding loans of 5 priority areas are accounting for over 30%, so this reduction significantly contributes profits, estimated at VND 450 billion," Thanh said.

2018 is considered to be a successful year of business of both Agribank and Vietcombank when both "big men" confirmed record profits are not due to "increasing lending rates". With Agribank, Mr. Trinh Ngoc Khanh said the pre-tax profit of 2018 reached VND 7,500 billion, the highest level ever. "The high profit margin compared to 2017 is not entirely from the increase in lending interest rates, we have kept the promise of early this year to reduce lending rates. The growth of the economy has helped Agribank bring bad debts In the table about 1.51%, increased service revenue and also recovered nearly VND 12,000 billion from sold debts and potentially risky debts, " Mr. Khanh said.

Meanwhile, with Vietcombank, Mr. Nghiem Xuan Thanh said that the income from non-credit (service fees) of banks has increased significantly when accounting for 30%.

Author: Translated by CoPhieuViet.Com

Source: Vnexpress newspaper

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