A series of "big guys" are out of breath

Statistics of Nguoi Dua Tin according to the financial reports of the first quarter of 2023 of 28 banks show that the profit from service activities of banks has begun to slow down, down 5.35% compared to the same period last year, some units even did not record any profit from this highly profitable segment.

Specifically, as of March 31, 2023, up to 11 banks recorded a decrease in net profit from service activities compared to the first quarter of 2022.

Of which, SeABank is the name that recorded a sharp decline in service profit, down nearly 57%, reaching 119 billion VND, mainly due to revenue from insurance agency services and other services decreasing by 55% and 68% respectively.

Next is Sacombank with a sharp decrease of more than 50% in this indicator, mainly due to a decrease in service income of more than VND 581.2 billion compared to the same period last year, while costs increased.

Once the "champion" in net profit from service activities in the first quarter of 2022, this period, the "big guy" Vietcombank fell to 5th place in the whole system, earning only 1,456 billion VND, a plunge of 46%. The main reason was that service income decreased by nearly 830 billion VND, plus costs increased by about 425 billion VND.

At MB, profit from service activities also decreased by 38%, recording 690 billion VND, due to a decrease in revenue from most services except payment and treasury activities.

Accordingly, revenue from debt settlement, valuation and asset exploitation activities decreased the most with 85%, followed by insurance business in second place with a decrease of 66%.

Revenue from securities brokerage services, consulting services, other services and agency services also decreased by 63%, 98%, 11% and 66% respectively.

Profits from service activities of other large private banks such as ACB and MSB also recorded sharp decreases, down 15% and 20% respectively.

The opposite trend occurred at smaller banks. Accordingly, the name that recorded the strongest growth rate in the banking system in the first quarter of 2023 belonged to ABBank, with an increase of 111%, reaching 134 billion VND. Next was Nam A Bank with net profit from service activities increasing sharply by 97% compared to the same period last year, reaching 130 billion VND.

In third place is Bac A Bank with an increase of 85%, profit of more than 30.5 billion VND. In the structure, most of the bank's service activities grew, in which the strongest increase was in trust and agency services, up to 166%.

Following is KienLongBank when recording 73% growth in this indicator, the growth momentum mainly came from payment services when earning nearly 110 billion VND, nearly 15 times higher than the same period last year.

Coming in second in terms of growth rate in service income is the "big guy" VietinBank with a 57% increase.

Other large-scale private banks such as Eximbank increased by 48%, SHB increased by 41%, TPBank increased by 36%, VPBank increased by 34%.

In terms of total net profit from service activities, VietinBank took the "champion" title from Vietcombank last year when it brought in more than VND2,000 billion in profit from this indicator.

Coming in second is Techcombank with net profit from service activities reaching 1,944 billion VND. Next is VPBank with net profit of 1,668 billion VND.

Two banks in the Big 4 group, BIDV and Vietcombank, followed, recording VND1,517 billion and VND1,456 billion, respectively.

Next are banks that also recorded service operating profits of over 600 billion VND, including TPBank, MB, HDBank, Sacombank, ACB, VIB.

In the system, NCB is the only bank that recorded a loss of VND400 million in its service activities, while in the same period last year it still had a profit of VND85 billion. Specifically, this bank lost VND360 million from performing payment, treasury and other activities. The main reason is that the cost (VND24.3 billion) is greater than the income (VND23.9 billion) when exploiting services.

Profit from service activities used to be the “golden goose” of many banks in previous periods. Most units chose to develop traditional services such as treasury payment activities.

However, the decline in cross-selling income (such as insurance) and the increase in service costs were the main reasons for the narrowing of service profit growth of banks .

Source