Banks make big profits from gold trading

From the group of state-owned banks participating in gold stabilization to commercial banks licensed to trade in gold, all are making huge profits from gold in the context of increasingly high gold prices.

In 2024, there is bank State-owned banks including Agribank, Vietcombank, BIDV, Vietinbank are allowed to sell SJC gold bars to stabilize the market according to the policy of the State Bank. This group of banks only sells and does not buy, and is allowed to earn a profit of 1 million VND/tael, which has helped these banks earn a significant profit. In the context of gold prices continuously increasing from 2024 to present, exceeding the mark of 102 million VND/tael, banks have made large profits.

According to the 2024 financial report just released by Agribank, profit before tax reached VND 27,575 billion last year, up 7.5% over the previous year. In 2024, many of Agribank's main business segments recorded positive growth results such as lending, services and foreign exchange. Specifically, net interest income reached VND 66,554 billion, up 19.3%, leading the entire banking industry.

Similarly, net profit from service activities increased by 10.1%, reaching VND5,026 billion, while the gold and foreign exchange trading segment earned a profit of VND4,539 billion, double that of last year.

Banks all make big profits from selling gold (photo: Nhu Y).

Vietcombank in 2024 achieved profit after tax over 33,850 billion VND, an increase of 2.2% compared to 2023. Of which, revenue from gold sales alone reached nearly 48 billion VND, while this category did not exist in 2023. Profit from gold revaluation reached over 16.7 billion VND. In total, the gold-related items alone helped Vietcombank earn more than 64 billion VND, contributing to total profit.

Similarly, BIDV reported after-tax profit in 2024 reaching more than VND 25,600 billion, an increase of 16.5% compared to 2023. Of which, revenue from gold business reached more than 46.7 billion VND (in 2023 there is no such item).

Vietinbank achieved after-tax profit of more than VND 25,480 billion in 2024, a sharp increase of over 27% compared to 2023. Of which, revenue from gold trading contributed more than VND 860 billion to the bank's profit, but decreased compared to the revenue of nearly VND 1,400 billion in 2023.

Outside the banking group State-owned and some commercial banks licensed to trade in gold have also made large profits over the years.

For example, MSB Bank recorded more than VND 1,070 billion in net profit from foreign exchange trading in 2023. Of which, the bank combined the profit from "spot foreign exchange and gold trading" to reach more than VND 1,200 billion, up 20% compared to 2022 and accounting for 20% of total foreign exchange trading income. In 2021, revenue from spot foreign exchange and gold trading reached nearly VND 475 billion, up 96% compared to 2020.

At TPBank, in 2023, revenue from spot foreign currency and gold trading reached more than VND 876 billion, down 17% compared to 2022, accounting for 32% of total revenue from foreign exchange trading activities.

In the period 2019-2023, revenue from spot foreign currency and gold trading at TPBank continuously grew, from more than 470 billion VND in 2019 to 1,058 billion VND in 2022, but suddenly decreased to more than 876 billion VND in 2023.

At Eximbank, revenue from gold trading in 2012 reached more than VND830 billion. This is considered the largest profit to date. In the period 2019-2023, revenue from gold trading at Eximbank fluctuated below VND200 billion per year. The lowest in 2023 was only over VND38 billion, down 72% compared to 2022, accounting for only 0.41% of total revenue from foreign exchange trading activities.

Eximbank and MSB are among the banks participating in the session. gold auction in 2024 of the State Bank.

Source