Profit "evaporated" 67% compared to the same period
Vietnam Thuong Tin Commercial Joint Stock Bank (Vietbank - UPCoM: VBB) has just announced its financial report for the third quarter of 2023. Accordingly, the bank recorded net interest income of VND 348.7 billion, down 13% over the same period.
Vietbank said that net interest income decreased mainly due to the many fluctuations in the world economy that affected the domestic economy, financial markets, especially the bond, stock, and real estate markets, etc., which had a significant impact on the business activities of businesses and individuals who are customers of Vietbank, leading to a capital utilization rate that was not as high as planned.
Profit from foreign exchange trading also decreased by 44%, reaching VND25 billion due to the unfavorable exchange rate movements in the market for profit taking. Net profit from other banking activities evaporated by 99%, plummeting from nearly VND75 billion in the same period last year to VND0.66 billion.
Notably, while the above two items declined, Vietbank's investment securities profit recorded a sharp increase of 208% compared to the profit of 3.4 billion VND in the same period last year, bringing the bank 10.5 billion VND thanks to taking advantage of opportunities brought by the bond market. Service activities also increased slightly by 3%, reaching nearly 32.5 billion VND.
After deducting operating expenses, Vietbank earned net profit from business activities of VND66 billion, down 63% over the same period.
During the period, although Vietbank cut its credit risk provisioning costs by half from VND 40.5 billion in the third quarter of 2022 to VND 20.3 billion.
However, due to poor business results, this bank reported a pre-tax profit of only VND49 billion, while in the same period last year it made a profit of more than VND148 billion, a decrease of 67%. Correspondingly, the bank's after-tax profit decreased from VND116.7 billion in the same period last year to VND38.9 billion.
Bad debt increases
In the first 9 months of the year, Vietbank recorded net interest income of VND1,276 billion, down 4% over the same period last year, mainly due to a decrease in loan interest income and a decrease in interest income from debt securities trading.
Non-interest income also decreased, such as service income decreased by 5%; foreign exchange income decreased by 8%, investment securities income decreased by 32% and income from other activities decreased by 52%.
After 9 months, Vietbank reported pre-tax profit of nearly 419 billion VND, down 22% compared to the same period last year. After-tax profit correspondingly decreased from 426 billion VND to 333 billion VND.
In 2023, Vietbank set a pre-tax profit target of VND 960 billion, an increase of 46% compared to 2022. Thus, at the end of the first 9 months of the year, Vietbank has completed about 44% of the set target.
This bank also aims to expand market share, increase total asset size in both quality and quantity, and control bad debt below 3% according to regulations of the State Bank.
However, after the first 9 months of the year, Vietbank's total bad debt was nearly VND2,891 billion, up 24% compared to the beginning of the year. Of which, substandard debt (group 3 debt) and doubtful debt (group 4 debt) both increased sharply by 143% and 65% to VND443 billion and VND539.8 billion, respectively. The ratio of bad debt to outstanding loans increased from 3.65% at the beginning of the year to 4.06%.
As of September 30, 2023, the bank's total assets were recorded at VND 125,079 billion, up 10% compared to the beginning of the year. Of which, deposits at the State Bank increased by 34% to VND 2,389 billion, deposits at other credit institutions increased by 60%, reaching VND 27,687 billion and customer loans increased by 12% to VND 71,241 billion.
Customer deposits increased by 13% compared to the beginning of the year, to VND85,847 billion. Vietbank issued valuable papers worth VND10,111 billion, up 97% compared to the beginning of the year, mainly certificates of deposit.
On the stock market, at the end of the trading session on October 30, VBB shares stood still at 9,900 VND/share, with no trading liquidity .
Thu Huong
Source
Comment (0)