Bac A Bank's profits decline, bad debt continues to increase

Bac A Commercial Joint Stock Bank (Bac A Bank – HNX: BAB) has just announced its consolidated financial report for the third quarter of 2023. Accordingly, in the third quarter of 2023, the bank recorded net interest income of VND 426 billion, down 33.1% compared to the net interest income of VND 637 billion in the same period last year.

Profit from service activities also decreased slightly compared to the first 9 months of 2022, reaching 23.2 billion VND. Profit from trading investment securities decreased by 45.8% to 13.3 billion VND.

Notably, in the last quarter, foreign exchange trading activities contributed greatly to the bank's business activities when they increased 19.5 times over the same period.

During the period, net profit from business activities decreased by 66% to VND 105 billion. As a result, Bac A Bank's pre-tax profit in the third quarter of 2023 reached only VND 77 billion, "evaporating" 73% compared to the same period in 2022. As a result, after-tax profit decreased by 71.9% to nearly VND 64 billion.

Accumulated in the first 9 months of 2023, Bac A Bank's pre-tax profit was VND551 billion, down 23% over the same period last year. Profit after tax similarly decreased by 22%, reaching more than VND380 billion.

As of September 30, 2023, Bac A Bank's total assets were recorded at VND 145,000 billion, up 12.6% compared to the beginning of the year. Customer loans increased slightly by 4.8% to over VND 97,000 billion, customer deposits also increased by 18.2% to over VND 114,585 billion.

However, the bank's bad debt balance increased by about VND83 billion compared to the end of the second quarter of 2023 to VND762 billion. In particular, group 3 debt (substandard debt) and group 4 debt (doubtful debt) increased sharply by 245% and 289% compared to the end of 2022, to VND145 billion and VND193 billion, respectively.

Bac A Bank's cash flow statement shows that the bank's net cash flow during the period is negative VND1,938 billion. Of which, operating cash flow is negative VND1,964 billion, investment cash flow is negative VND294 billion. Only financial cash flow is VND321 billion.

At the end of the period, Bac A Bank's cash and cash equivalents were at VND 10,598 billion, down slightly by 0.04% over the same period in 2022.

On the market, at the end of the session on October 12, BAB shares stopped at 13,500 VND/share with a trading volume of just over 4 thousand units .

Thu Huong

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