Vietnam Prosperity and Development Joint Stock Commercial Bank (PG Bank - HNX: PGB) has just announced its business results for the fourth quarter and the whole year of 2023.
Notably, PG Bank reported a post-tax loss of VND4.6 billion in the fourth quarter of 2023, showing a gloomy business period, a decline compared to the profit of VND95 billion in the same period last year.
The consolation for this bank is that net interest income recorded at nearly VND347.8 billion, up 4% over the same period last year. However, the remaining business segments of PG Bank all recorded not very bright results.
Specifically, the bank's service activities recorded a loss of nearly VND10.3 billion, while in the same period last year it made a profit of VND25.9 billion. The bank's foreign exchange business also declined with a loss of VND4 billion, while in the previous period, this segment brought in a profit of VND17.2 billion.
PG Bank continued to lose VND3.5 billion in investment securities activities, higher than the loss of VND2.4 billion last year. Net profit from other activities of the bank also dropped to VND10.8 billion, down more than 80.4% compared to the same period in 2022.
The bank's operating expenses also decreased slightly from VND259 billion to VND254 billion. As a result, PG Bank's net profit from business activities was VND86.6 billion, down 49.2% compared to the fourth quarter of 2022.
A decrease in business profits while risk provision expenses increased sharply by 75.1% to VND91 billion was the main reason for the loss of VND4.6 billion in the fourth quarter of this bank.
PG Bank said that the reason for the decline in profit in the fourth quarter of 2023 was due to the reduction in lending interest rates to customers according to the Government's policy while the cost of mobilization has not decreased due to delay and credit growth concentrated in the last month of 2023.
In addition, PG Bank paid remuneration to agents who introduced customers to loans to promote credit growth, causing service operating costs to increase.
Specifically, according to the financial statement, at the end of 2023, PG Bank had service operating expenses of VND 64.6 billion, an increase of more than 68% compared to the previous year. Mainly due to the increase in commission and brokerage expenses, which increased 7 times compared to 2022, to VND 28.7 billion.
Accumulated for the whole year of 2023, PG Bank recorded net interest income of nearly VND 1,307 billion, an increase of 8% compared to 2022. The bank reported pre-tax profit of VND 355.5 billion, down 29.7%; after-tax profit of VND 283 billion, down 29.8% compared to 2022.
The main reason was that net profit from business activities decreased by 22.8% compared to the previous year to VND590.9 billion.
Accordingly, in 2023, PG Bank's service profit decreased by 56% to VND 34.7 billion, foreign exchange profit decreased by 54% to VND 34.7 billion, and other profit decreased by 72.8% to VND 41.3 billion. The bank even recorded a loss of VND 3.5 billion from securities trading and investment, while last year it made a profit of more than VND 27 billion.
As of December 31, 2023, PG Bank's total assets reached VND 55,495 billion, up 13.3% compared to the beginning of the year. Customer deposits reached VND 35,730 billion, up 14.3% compared to the beginning of the year.
By the end of 2023, PG Bank's total bad debt was VND905 billion, up 21.5% over the previous year. Mainly due to group 3 debt (substandard debt) increasing 3 times over the previous year to VND189.2 billion.
At the end of December 2023, with the approval of the State Bank, Petrolimex Joint Stock Commercial Bank (PG Bank) officially changed its commercial name to Prosperity and Growth Commercial Joint Stock Bank, abbreviated as PG Bank.
The bank also changed its new brand identity with the center of the logo replaced by a stylized S, which stands for the word "Success" and is a symbol for Vietnam .
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