First bank to report profit in 2024, revealing the industry's profit picture

(NLDO) – Sacombank is the first bank to announce pre-tax profit in the fourth quarter of 2024 and has a record high total annual profit ever.

Information from Sacombank said that pre-tax profit in the fourth quarter of 2024 is expected to reach over VND 4,600 billion, an increase of 68% over the same period. Accumulated for the whole year of 2024, Sacombank's pre-tax profit is estimated to reach over VND 12,700 billion, the highest ever and exceeding the target assigned by the shareholders' meeting.

At the recent 33rd anniversary celebration of Sacombank, Mr. Duong Cong Minh, Chairman of the Board of Directors of this bank, said that after 7 years of implementing the restructuring project in the 10-year roadmap, Sacombank has resolved almost all outstanding issues and basically completed key goals.

"Sacombank continues to maintain its position and is among the largest banks with total assets of nearly VND717,000 billion; capital mobilization and credit growth both increased by 12% over the same period. Digital banking channels have grown strongly in both the number of new customers and the number of transactions, estimated to increase by 6.9% and 34.8% respectively over the previous year, bringing the number of customers to 20 million people. It can be said that Sacombank has become a typical model for an effective self-restructuring model" - Mr. Minh commented.

Sacombank is the first bank to announce its 2024 profit

In 2024, Sacombank will continue to accelerate the recovery and handling of nearly VND 10,000 billion of bad debts and outstanding assets, contributing to strengthening asset quality. Currently, the bank has recovered and handled more than 80% of bad debts and outstanding assets, and fully set aside provisions in accordance with regulations.

Sacombank is the first bank to announce full-year profits, in a context where the banking industry is forecast to maintain positive growth momentum as the economy recovers.

In the recently announced 2025 strategy report, MBS Securities Company forecasts that the full-year 2024 profit of listed banks in the fourth quarter will not exceed 16%. Of which, ACB bank's net profit is forecast to be over VND 16,800 billion, up 4.9%; BIDV's over VND 25,200 billion, up 10.6%; VietinBank's over VND 22,900 billion, up 14.4%; HDBank's over VND 13,200 billion, up 28%; VPBank's over VND 15,300 billion, up 80% over the same period...

Michael Kokalari, Director of Macroeconomic Analysis and Market Research at VinaCapital Investment Fund, expects the overall banking industry’s profit growth to increase from 14% in 2024 to 17% in 2025, thanks to lower credit costs. Deposit interest rates may increase by 0.5-1 percentage point next year as credit growth exceeds deposit growth this year, forcing banks to make efforts to mobilize capital.

"Net profit margins are expected to stabilize next year, as lending will be driven mainly by mortgages and infrastructure loans," said Michael Kokalari.

Source: https://nld.com.vn/ngan-hang-dau-tien-bao-lai-2024-he-lo-buc-tranh-loi-nhuan-cua-nganh-196241224111503652.htm