In the group of banks with trillion-dollar profits with outstanding profit growth in the first 6 months of the year, Loc Phat Vietnam Joint Stock Commercial Bank (LPBank) increased by 142%, VPBank (68%), SeABank (61%), HDBank (49%), Techcombank (39%)...

If only calculating the profit growth rate, the leader is the Vietnam Joint Stock Commercial Bank for Industry and Trade (BVBank) with a growth rate of up to 284%.

Cost control, lending activities flourish

BVBank PGD.jpg
BVBank leads in profit growth in the first 6 months of the year. Photo: BVBank.

In the first 6 months of 2024, LPBank achieved pre-tax profit in the second quarter of up to 3,033 billion VND. Accumulated pre-tax profit in the first 6 months of the year reached 5,919 billion VND, a sharp increase of 142% over the same period in 2023.

With the above results, LPBank has achieved 56% of this year's profit plan. Previously, LPBank's General Meeting of Shareholders approved the pre-tax profit plan for 2024 of VND 10,500 billion.

Notably, in the first 6 months of the year, LPBank mobilized 336,978 billion VND from customers, while outstanding loans reached 317,417 billion VND. Thus, LPBank's credit growth as of June 30 reached over 15% - a dream number for many credit institutions.

According to LPBank's explanation of the fluctuation in after-tax profit, the second quarter increased by 142% compared to the same period last year, due to the improving economic situation, the recovery of production and business activities, and the need for additional working capital for many individuals and businesses.

For VPBank , the pre-tax profit in the first half of the year reached VND 8,665 billion, a sharp increase of 68%, which the bank explained was due to effective control of capital costs and a focus on maximizing business opportunities. Thanks to that, the parent bank's credit scale reached VND 570,000 billion, an increase of 8.2% compared to the end of 2023.

VPBank focuses on promoting strategic segments such as individual customers, small and medium enterprises, consumer finance and emerging FDI segments, to optimize market business opportunities and maximize revenue and profit.

SeABank is also one of the top banks in terms of profit growth, with more than VND 3,238 billion in the first half of the year, an increase of 61% over the same period in 2023.

Notably, the balance of non-term deposits (CASA) at this bank increased sharply, to VND20,038 billion, up 59% over the same period last year and accounting for 13.4% of total mobilization. This is a significant advantage of this bank in saving capital mobilization costs, creating momentum for profit growth.

At BVBank, with pre-tax profit recorded in the first 6 months of 2024 reaching VND 153 billion (up 284%), BVBank leads in pre-tax profit growth rate in the first 6 months of the year, thereby achieving 76% of the year plan.

Explaining the remarkable growth in profits, BVBank said one of the important factors is that the bank actively controls costs.

Business situation recorded, accumulated in the first 6 months of the year, total income (TOI) reached nearly 1,200 billion VND, up 46% over the same period. For core business activities, while interest income decreased by 13%, capital costs were optimized, down 29% over the same period. Accordingly, BVBank recorded a total net interest income increase of 57% compared to the first 6 months of 2023, reaching 1,023 billion VND.

Foreign exchange trading activities flourished, growing 65% year-on-year thanks to a sharp increase in foreign exchange sales.

While total operating income increased by 46%, BVBank's operating expenses stood at VND700 billion, up only 9% year-on-year - proving that the bank has implemented many effective cost management solutions, thereby supporting profit growth.

In terms of credit growth, in the first quarter of 2024, BVBank faced many difficulties due partly to the impact of the general market context; in the second quarter, lending activities improved, with outstanding loans reaching nearly VND 59,600 billion, up 10.6% over the same period and up 3.2% compared to the end of 2023.

Revealing the 'champion' in pre-tax profit

Meanwhile, HDBank reported pre-tax profit for the first 6 months of up to VND8,165 billion, up 49% over the same period with credit growth reaching 13%.

HDBank said the above results were thanks to the bank's increased operational efficiency and application of digital transformation initiatives. The number of new customers attracted through digital channels was 2.5 times higher than the same period last year. 94% of customer transactions were conducted via digital channels. The number of e-banking transactions increased by 130% over the same period.

Techcombank has also just announced its business results for the first 6 months of the year with pre-tax profit reaching 15.6 trillion VND, CASA and capital adequacy (CAR) continuing to lead the industry.

In the second quarter of 2024, Techcombank achieved pre-tax profit of VND 7,827 billion, up 38.5% over the same period last year; accumulated 6 months reached VND 15,628 billion, up 38.6% over the first 6 months of 2023.

However, in terms of absolute numbers, Vietcombank is still "unrivaled" with VND20,835 billion in pre-tax profit in the first 6 months of the year, although it only increased slightly by 2% compared to the same period.

Coming in second is Techcombank, this private bank is even above BIDV (VND 15,549 billion), MB (VND 13,428 billion) and VietinBank (VND 12,960 billion).

Among the three state-owned commercial banks, BIDV led in profit growth, up to 12%, while the figures at VietinBank and Vietcombank were 3% and 2% respectively.

Among private commercial banks, Techcombank, VPBank, ACB, HDBank,... are expected to be the group leading the overall growth trend of the entire industry in 2024 thanks to capital adequacy ratio and credit growth.

RANKING OF BANKS' PROFIT IN THE FIRST 6 MONTHS OF 2024
STT BANK 6-MONTH PROFIT (BILLION VND) GROWTH
1 VIETCOMBANK 20,835 2%
2 TECHCOMBANK 15,628 39%
3 BIDV 15,549 12%
4 MB 13,428 5%
5 VIETINBANK 12,960 3%
6 ACB 10,491 5%
7 VPBANK 8,665 68%
8 HDBANK 8,165 49%
9 SHB 6,860 13%
10 LPBANK 5,919 142%
11 SACOMBANK 5,342 12%
12 VIB 4,605 -18%
13 TPBANK 3,733 10%
14 MSB 3,690 4%
15 SEABANK 3,239 61%
16 NAM A BANK 2,217 45%
17 OCB 2.113 -17%
18 EXIMBANK 1,474 5%
19 VIET A BANK 734 33%
20 ABBANK 582 -14%
21 KIENLONG BANK 552 37%
22 BAC A BANK 542 14%
23 VIETBANK 411 11%
24 PGBANK 268 -7%
25 SAIGONBANK 166 -9%
26 BVBANK 153 284%
27 BAOVIET BANK 26 4%
28 NCB 7 -47%
Total 148,351 16%