Loan books up, but Vietnam banks struggle for profits

HO CHI MINH CITY - Five of the eight largest Vietnamese banks reported a year-over-year decline in net income in 2013, although all eight were able to post higher loan totals, according to a new SNL Financial report. It says a number of the larger banks have been trimming staff and reducing expenses to deal with declining profits.

State Bank of Vietnam governor, Nguyen Van Binh, said the central bank expects the number of domestic commercial banks in Vietnam to fall to as few as 14 over the next three years from the current 30, amid a wave of consolidation.
The central bank believes that consolidation could help competitiveness and result in a bank count more in tune with the size of Vietnam's economy. www.snlasiapacific.com (ATI).