Vietcombank achieved double valedictorian in profit
With pre-tax profit in the first 9 months of 2023 reaching VND 29,550 billion, Vietcombank continues to usurp the throne of banking industry profit.
This bank also maintains a large gap with the 2nd and 3rd positions on the ranking, respectively Agribank and MB, with after-tax profits of VND21,860 billion and VND20,019 billion, respectively. BIDV ranks 4th with after-tax profits of VND19,763 billion.
Not only that, in the third quarter, Vietcombank won the "double valedictorian" position with the highest profit in the system, reaching 9,051 billion, up 19.6% over the same period last year.
The next two banks chasing each other are VietinBank with pre-tax profit of VND17,401 billion and Techcombank with VND17,115 billion.
ACB stopped at 7th place in the ranking with pre-tax profit for 9 months reaching 15,024 billion VND, up 11% over the same period.
Although not reporting profits of thousands of billions like other banks in the same ranking, in the third quarter, HDBank and VIB had strong growth.
Accordingly, in the first 9 months of 2023, HDBank reported pre-tax profit of more than VND 8,600 billion, up 8%; VIB had pre-tax profit of more than VND 8,300 billion, up 7% over the same period last year.
SHB closed the top 10 with pre-tax profit of VND8,509 billion. Notably, at the end of 9 months, VPBank fell out of the rankings when it went backwards, reporting a net profit after tax of VND8,279 billion, down 58% compared to the same period.
Profit growth in the style of "yin flourishes, yang declines"
Synthesizing from financial reports of banks in the third quarter of 2023, up to 15 banks reported a decrease in accumulated profits, 11 banks recorded an increase in accumulated profits and 1 bank is losing hundreds of billions of VND.
Accordingly, NCB reported a pre-tax loss of VND244 billion in the third quarter of 2023 and a cumulative loss of VND231 billion in the first 9 months of the year. The bank said the main reason was due to the general fluctuations of the economy, financial markets, especially the bond, stock, and real estate markets...
The sad thing about the banking industry is that profits are in a state of "negative growth and positive decline" when more banks have negative profit growth.
Accordingly, BVBank "ranked last" when reporting a profit of 61 billion VND in the first 9 months of 2023, down 85% compared to the profit of more than 420 billion VND in the same period last year.
Similarly, ABBank's profit decreased by 59%; Eximbank decreased by 46%; VietABank decreased by 27%; VietBank decreased by 22%...
On the contrary, at the end of the first 9 months of 2023, although not in the top 10 profits, Sacombank had the highest profit growth in the entire banking industry with an increase rate of 54%, earning 6,840 billion VND in pre-tax profit.
Following closely behind is OCB bank with accumulated profit reaching 3,915 billion VND, up 48% over the same period; Kienlongbank reported pre-tax profit for 9 months reaching 639 billion VND, up 25%...
Bank profit growth situation in the third quarter of 2023.
According to Dr. Can Van Luc, Chief Economist of BIDV, Member of the National Financial and Monetary Policy Advisory Council, the decline in profits of many banks after the first 9 months of the year is due to relatively low credit growth compared to the same period last year.
In addition, banks' net interest margins (NIMs) are also smaller than last year. Service fees have increased substantially lower because some fees continue to be waived or reduced.
Besides, other business services such as bancassurance or bond trading are not as favorable as in previous years.
In particular, bad debt has been increasing, forcing credit institutions to increase risk provisions, which means shrinking profits.
Bank profits may increase but not much
At the end of the first 9 months of 2023, only 9 banks completed 75% of the annual plan. Of which, Kienlongbank temporarily took the lead when completing 91.3% of the target set by the Board of Directors.
However, there are up to 7 banks that have not exceeded 50% of annual profit, including: BaoViet Bank (35.6%); BV Bank (12.2%); VietBank (43.6%); VietABank (46.6%); ABBank (23.2%); Eximbank (34.2%); VPBank (34.5%).
Assessing the trend of bank profits in the last months of the year, Mr. Luc said that bank profits may increase but not much.
Experts predict that credit may increase faster. Some service fees related to the stock market and margin lending are also likely to increase by the end of the year.
Regarding the banking industry in 2023, VNDirect Securities Company believes that "the storm will continue". The real estate market and corporate bonds will continue to face difficulties, which will negatively impact the asset quality and liquidity of banks.
Overall, the sector’s profit growth is forecast to slow to 10-12% yoy in 2023-24 (from 32% yoy in 2022), as credit growth slows, net interest margins narrow and credit costs rise.
Last October, the State Bank announced the results of the business trend survey for the fourth quarter of 2023, according to which credit institutions assessed that the business situation and profits of the banking system in the third quarter of 2023 had not improved as expected in the previous survey.
Therefore, credit institutions continued to narrow their expectations on business and profit situations in the coming time, with 66.7 - 72.1% of credit institutions expecting business situations to improve in the fourth quarter and the whole year of 2023 (lower than the rate of 70.3 - 74.8% in the previous period).
On the contrary, the number of credit institutions concerned about a “declining” business situation has also increased. In 2023, 82.6% of credit institutions expect pre-tax profits to grow positively compared to 2022. In addition, 13.8% of credit institutions are still concerned about negative profit growth in 2023 and 3.7% estimate that profits will remain unchanged .
Thu Huong
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