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The Tet bank bond is always the information that receives special attention from the community not only because of its great value compared to the general level of the economy but also because it clearly reflects the signal of the development of the economy in that year.
The COVID-19 epidemic has severely affected the global economy in general and Vietnam in particular. According to estimates by international organizations, it is estimated that the world’s Gross Domestic Product (GDP) has decreased by 3.8%, this is the worst economic recession since World War II.
Particularly for Vietnam, by 2020, GDP is estimated to increase 2.91% thanks to well-controlled epidemics and efforts from many sides, both government and business. The banking sector itself is responsible for being a bridge, the soul of the economy, both to accompany companies and to grow cautiously before the fear of bad debt resurfaces.
New year’s bank bonus ‘people who don’t eat all the time don’t go out’. Photo: Internet.
Since the beginning of 2020, the governor of the State Bank has issued a written request to banks this year to accompany the economy by cutting operating costs, reducing salary costs and not paying cash dividends. From the beginning of the year until now, the State Bank has reduced the operating rate 3 times with a total reduction of 1.5-2%. The lowest credit growth since 2013 so far. This shows that the banking industry is also facing many difficulties in increasing profits in 2020.
Many banks have lowered their business targets and earnings ahead of the AGM due to concerns about the negative effects of the COVID-19 pandemic. Many banks increase their provisioning considerably from the first quarters of the year to increase the buffer, but will “erode” the profits of the whole year. This prudence is considered necessary to prepare the foundations for a challenging year that will continue in 2021 when Circular 01 on debt restructuring of the Banco del Estado expires.
Considering all of the above, to see that there are not too many expectations for a great Tet bonus year for the banking industry during Lunar New Year 2021.
A recent message from the governor of the State Bank of Vietnam said that in 2021, banks will require banks to lower their earnings targets to support lowering medium and long-term interest rates to meet the capital needs of the economy. This order will probably have a big impact on the market in 2021, although the fact that the benefit of the bank in 2021 is as difficult as every year.
Recently, the banking industry has raised news that VietinBank is about to pay salary bonuses of almost 6 months. However, this bank had to respond quickly, saying that this was the amount spent in previous years like 2018, 2019.
So far, consulting staff of several banks in Vietnam, it is known that “there is still no information about the Tet bonuses in 2021 because they are awaiting commercial results for the year 2020.” However, most of the opinions said that just waiting for a Tet bonus this year equal to last year would be very good, and they did not dare to ask for more.
The commercial results of banks in the last 9 months and 11 months have seen quite good changes, some banks with stronger growth than in 2019.
Some banks such as ACB, MSB and ABBank reported that 11-month earnings exceeded the 2020 plan. As ACB exceeded the annual plan by 14% at 11; MSB outperformed annual plan by 60%; ABBank outperformed the plan by 1% after 11 months. Yet these are the banks that are rushing to court and go broke.
Some 9-month banks also had relatively good results, such as VPBank, after 9 months, it also reached 92% of the annual profit plan, equivalent to VND 9.4 billion in profit; MBBank’s 9-month earnings also reached VND 8.134 billion, completing 82% of the plan; TPBank’s 9-month profit reached 3.024 trillion dong, reaching 75% of the plan by 2020 …
The outlook for the banking industry in 2020 is not at a bad level in the private equity group of commercial banks. However, the Big 4 group posted not so positive business results. Like Vietcombank, which is regarded as the leading wing in this sector, in the first 9 months, earnings before tax decreased by 9% to 15,965 million dong; The BIDV’s 9-month earnings also increased slightly, almost equivalent to the same period of VND 7.062 billion.
Only Vietinbank had a pre-tax profit of 10.364 billion dong in 9 months, 23% more. However, the 9-month minimum provisioning may need to increase dramatically in Q4 2020, which has a significant impact on full-year earnings.
Many experts believe that the year 2020 has not fully reflected the negative impact of the COVID-19 epidemic on the banking industry due to restructured, deferred and frozen debts, as a “sweep” under the carpet, “part of the debt uncollectible was hidden. ” So the New Years Bonus for Banking Staff 2021, the part based primarily on business results, won’t be that bad compared to 2020.
According to experts, Tet bonuses for the 2021 banking sector will remain attractive compared to other sectors of the general economy. Although the earnings growth rate has not made a big breakthrough, the estimated growth of 10% in 2020 is also very positive. Along with that, surely there will be banks that strongly pay bonuses to their employees, but there will also be banks that have not yet made a profit, the Tet bonus is not even there.
In 2020, Vietcombank is known to reward employees with one month’s salary for the New Year and 2 to 5 months for the Lunar New Year. VietinBank also rewards employees with a 2020 New Year’s monthly salary.
In the private banking group, Sacombank is in the group of banks with a good bonus policy. Last year, the bank considered dividing the Tet bonus based on the qualification of each employee. For employees with excellent and excellent series, the Tet 2020 bonus is 5.5 to 6 months of salary. On the other hand, the average Tet bonus in banks can vary from 1 to 3 months of the employee’s salary.
In 2020, the market has been buzzing with news, the highest bonus for 1 “banker” for the New Year 2020 is 3.5 billion in FDI enterprises in the banking sector in Ho Chi Minh City. The year 2021 is also promised that it will continue to be the year “of those who do not eat and of those who do not come” of the “bankers.”
