(Dan Tri) - FPT Group, Masan and Quang Ngai Sugar have large deposits, earning billions of dong in interest every day. However, Masan is having to bear a higher interest expense than the interest on deposits.
The third quarter 2024 financial reports of many companies so far reveal a rather interesting indicator: bank deposits. Some businesses have deposited thousands of billions of dong in banks and earned huge interest on deposits.
FPT Corporation (stock code: FPT) had VND27,373 billion in bank deposits as of September 30, accounting for 41% of total assets. Recorded deposit interest was nearly VND865 billion, equivalent to the company earning more than VND3 billion in interest each day from depositing money in banks.
Interest on deposits is also many times higher than the cost of borrowing. In 9 months, FPT had to pay nearly VND417 billion in interest expenses for a financial loan of VND14,646 billion, as of September 30. The debt/equity ratio is 0.4 times.
Along with the huge deposits, FPT also recorded good business results in the first 9 months, with net revenue increasing by 19%, reaching 45,241 billion VND; profit after tax increased by 21%, reaching 6,927 billion VND.
Many businesses deposit money in banks (Photo: Manh Quan).
Another company, Quang Ngai Sugar Joint Stock Company (stock code: QNS), also has VND7,064 billion in bank deposits, up 15% compared to the beginning of the year. This number accounts for 54% of the company's total assets.
Since then, the company has recorded nearly VND175 billion in interest on deposits in 9 months, equivalent to nearly VND650 million in interest per day from depositing money at the bank.
Interest on deposits at the company is higher than interest expense. In 9 months, the company incurred interest expense of nearly VND 76 billion for financial debt of VND 2,307 billion.
In the first 9 months, Quang Ngai Sugar also recorded growth results, with revenue increasing by 4% to more than VND 8,069 billion; profit after tax increased by 14% to nearly VND 1,755 billion.
Masan Group Corporation (stock code: MSN) also earned more than VND1,514 billion in interest from deposits, loans and investment activities in 9 months. Each day, the company earns more than VND5.6 billion in profit. According to the report, Masan has VND12,390 billion in deposits, accounting for 8% of total assets.
However, the large debt makes Masan bear a higher interest expense than the interest on deposits. As of September 30, billionaire Nguyen Dang Quang's company had VND65,739 billion in financial debt, 1.6 times its equity. The company had to bear interest expenses on loans, issued bonds and investment activities of more than VND4,878 billion, equivalent to VND18 billion/day.
Why don’t businesses use deposits to serve their business activities instead of borrowing from banks? Many reasons are mentioned by experts, such as businesses borrowing will benefit from deducting corporate income tax, and deposits will help businesses proactively manage cash flow when needed.
Source: https://dantri.com.vn/kinh-doanh/mang-tien-di-gui-ngan-hang-nam-khong-cung-thu-lai-hang-ty-dong-moi-ngay-20241026072242336.htm
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