Vietcombank reports 45% earnings growth in 2009

Surge in profits was propelled by government's stimulus package that fostered bank's lending.

Pretax profit of Hanoi-based Joint-Stock Bank for Foreign Trade of Vietnam, known as Vietcombank, rose 46 percent to VND5.15 trillion (US$279 million) last year, Vice General Director Nguyen Thu Ha said.

The government in January 2009 offered about VND17 trillion ($920.41 million) in subsidies to encourage banks to lend to businesses. The government last month ended preferential short-term loans, and plans to phase out all other subsidies, according to a report in Thanh Nien News.

"Banks last year benefited from the government's interest-rate subsidy program and easy credit growth," said Nguyen Minh Tuan, head of research at Ho Chi Minh City-based SaigonBank Berjaya Securities Joint-Stock Co.

Total outstanding loans at Vietcombank last year rose 26 percent to VND140.5 trillion ($7.61 billion), Ha said.