Big 4 banks simultaneously surpass billion USD profit mark

ANTD.VN - In the context of many economic difficulties that have greatly affected many small-scale banks, the preliminary business results of the four State-owned commercial banks (Vietcombank, VietinBank, BIDV and Agribank) are all very positive.

Bright picture of Big4

Looking at the preliminary business results, it can be seen that state-owned banks are quite positive, all of them have exceeded the billion-dollar profit mark.

At a recent summary conference, Vietcombank's General Director said that the bank's pre-tax profit in 2023 increased by 10.2% compared to 2022 and completed the assigned plan.

Although no specific figures were announced, in 2022, the bank recorded a consolidated pre-tax profit of VND37,368 billion and a separate profit of more than VND36,702 billion. Thus, with a growth rate of more than 10%, Vietcombank's estimated consolidated pre-tax profit this year could reach over VND41,000 billion.

With the above results, Vietcombank has set a new record in profit and continues to maintain its "throne" in the entire system, far surpassing the remaining banks in the Big4 group such as BIDV, VietinBank and Agribank.

By the end of 2023, Vietcombank's capital mobilization in market I will reach approximately VND 1,410 trillion, up 12.1% compared to 2022. Outstanding credit will reach VND 1,270 trillion, up 10.6% compared to the end of 2022.

The bad debt ratio according to Circular 11 is at 0.97%; The risk reserve fund according to Circular 11/2021/TT-NHNN is 34,338 billion VND, the bad debt reserve ratio is 185%.

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Major banks record quite positive business results

Another “big guy”, BIDV, also maintained quite positive business results last year. According to the preliminary business results announced by the bank, many targets were achieved and exceeded the assigned plan.

Specifically, consolidated pre-tax profit reached over VND27,400 billion. Of which, pre-tax profit of commercial banks reached VND26,750 billion; subsidiaries reached VND1,290 billion, and joint ventures reached VND945 billion.

By the end of 2023, BIDV's total assets reached VND 2.26 million billion, continuing to maintain its position as the joint stock commercial bank with the largest total assets in the system. Capital mobilization reached VND 1.89 million billion, up 16.5%; outstanding credit reached VND 1.75 million billion, up 16.66%. The bad debt ratio according to Circular 11 is controlled at 1.1%; the bad debt coverage ratio (Credit Risk Reserve Fund balance/bad debt balance) reached 192%.

By the end of 2023, VietinBank's total outstanding credit balance will reach more than VND 1.5 million billion, an increase of 15% compared to the end of 2022. Credit quality has improved, with the bad debt ratio at 1.15%; debt coverage ratio reaching 160%, remaining at a high level.

VietinBank's capital mobilization increased by 13.7%, of which demand deposits (CASA) grew by 27%.

For Agribank, the Bank estimates pre-tax profit for the whole year to reach about 25,300 - 25,400 billion VND, an increase of 14.5 - 15% compared to the previous year.

By the end of 2023, Agribank's total assets will exceed VND2 million billion, with capital reaching over VND1.88 million billion. Total outstanding loans to the economy will reach over VND1.55 million billion, up 7.4%; the bad debt ratio will be controlled below 2%.

There is expected to be a major divergence.

In addition to the four "big" banks above, several other banks have also revealed their business results for 2023. Of which, Sacombank recorded an estimated 50% increase in consolidated pre-tax profit compared to 2022, reaching VND 9,500 billion and completing 100% of the plan set by the shareholders' meeting.

The total assets of the Bank are estimated at nearly VND664,000 billion, of which profitable assets account for 90.3%. Total mobilization is estimated at over VND574,000 billion; loans are estimated at over VND487,000 billion. The bad debt ratio is controlled at 2%.

Or PVCombank, the Bank's leader revealed that in 2023, the Bank is expected to complete 129% of the revenue plan and 100% of the pre-tax profit plan; the minimum capital safety ratio is greater than 8%.

Although no specific figures were disclosed, PVCombank set a target for parent bank revenue of VND15,024.5 billion and pre-tax profit of VND80 billion last year. For the consolidated bank, the revenue plan is VND15,559.4 billion and pre-tax profit is VND109 billion.

Although some banks did well last year, based on the business results of previous quarters, it is forecasted that this year's banking profit picture will have a large differentiation.

Previously, in the first 9 months of the year, 16/28 banks recorded a decrease in profits compared to the same period last year, of which 1 bank recorded a loss (NCB). Some banks had a large decrease in pre-tax profits such as: Eximbank (-76%), BacABank (-73%), ABBank (-65%), VietABank (-67%), VietBank (-66%), PGBank (-60%)...

According to the forecast of Vietcombank Securities Company (VCBS), the profit of the entire banking industry is expected to slow down and remain flat in 2023 and there will be a differentiation in profit prospects among banking groups in 2024 with a growth rate of about 10%.

In case the real estate market and the macro economy recover slowly, the profits of small-sized banks will continue to slow down, even experiencing negative growth.

On the contrary, banks with strong “buffers” or those with plans to increase capital this year will have strong growth momentum, expected to exceed the industry average, with profit growth of 18-20%.

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