Vietnam bank profits poised to pop

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Double-digit profit growth rate points to a bubbly credit boom that threatens to inflate underlying problems in the unreformed finance sector.

Vietnam’s crowded banking sector is popping the champagne after reporting double-digit profits in the first half of the year, but a bubbly credit boom seems poised to pop later in the year.

Pre-tax earnings of the nine listed banks grew by an average 30%, with Vietcombank reaping $232.5 million, VietinBank $212.4 million, BIDV $164.1 million and Military Bank $111.7 million.

KK3 1aThe windfall came from a lending surge that may not be sustained through the rest of the year due to credit limits, and profits will in any case be siphoned off to…

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