Agribank, NCB exceeded targets

Agribank is the first bank to reveal its 2024 business results with many figures considered the best in the past 4 years.

By December 31, 2024, Agribank's total assets will reach over VND 2.2 million billion, an increase of VND 200,000 billion (10%). Capital mobilization will exceed VND 2 million billion, an increase of over VND 140,000 billion (7.5%). Outstanding credit will reach over VND 1.72 million billion, an increase of over VND 170,000 billion (+11%). The bad debt ratio will be controlled at 1.56%. Equity will reach VND 126,000 billion, of which charter capital will reach VND 51,600 billion.

Agribank said that its pre-tax profit in 2024 increased by over 8% compared to 2023. In 2023, the bank achieved VND25,525 billion in separate pre-tax profit. Thus, Agribank's separate pre-tax profit in 2024 reached about VND27,567 billion.

In 2024, Agribank will complete the restructuring of 21 branches in Hanoi and Ho Chi Minh City. This bank will handle nearly VND 138,000 billion of bad debt in the period of 2021-2024, striving to reduce the bad debt ratio in 2025 to below 1% and complete the goal of reducing the bad debt ratio in the balance sheet, potential debt to become bad debt; and unprocessed debt sold to VAMC to below 3% by the end of 2025.

National Citizen Commercial Joint Stock Bank (NCB) also had positive business results in 2024.

In 2024, NCB will begin its restructuring journey by becoming the first credit institution to complete the development and approval of the Restructuring Plan (PACCL) under the "Project on restructuring the system of credit institutions associated with bad debt settlement for the period 2021-2025" according to Decision 689/QD-TTg of the Prime Minister and guidance of the State Bank.

Accordingly, this bank has actively recovered and handled outstanding assets, reaching 130% of the target at PACCL; completed the provisioning and divested accrued interest immediately after completing the increase in charter capital to nearly VND 11,800 billion last December.

The provisioning, divestment of accrued interest and capital expenditure of old existing accounts according to the roadmap at PACCL is also the reason why the profit in 2024 recorded a negative level, although NCB's new business development activities in 2024 achieved very remarkable results with total net operating income (TOI) after risk provisions from new business activities of VND 2,968 billion. After deducting all operating expenses, the profit from new business activities reached VND 1,339 billion.

As of December 31, 2024, NCB has exceeded the target set at the Annual General Meeting of Shareholders held in April 2024. Of which, total assets reached VND 118,562 billion, up 23.2% compared to 2023 and exceeding the plan by 12%. Total outstanding loans to customers reached VND 71,175 billion, total capital mobilization from market 1 reached VND 100,491 billion, exceeding the plan by 10.6% and 16.8% respectively.

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Illustration: Hoang Ha

Many banks are forecast to have big profits.

Up to now, no bank has officially announced its financial report for the fourth quarter of 2024. However, VCBS Securities has just updated the forecast of banks' business results.

VCBS forecasts VietinBank's total operating income in the fourth quarter of 2024 to reach VND20,585 billion, up 12.9% year-on-year. Pre-tax profit is expected to reach VND8,557 billion, up 11.2%.

BIDV's total operating income in the fourth quarter of 2024 is forecast to reach VND25,300 billion, up 23% year-on-year. Pre-tax profit is expected to be VND8,778 billion, up 11%.

For the “big guy” Techcombank, VCBS forecasts total operating income for the fourth quarter of 2024 to reach VND11,935 billion, up 8.3% year-on-year. However, pre-tax profit is forecast to decrease by 11.4% to VND5,114 billion.

Techcombank's Q4/2024 profit is forecast to decrease because during the period, the bank had to set aside VND1,800 billion to compensate Manulife after the two sides terminated their exclusive insurance distribution cooperation.

Meanwhile, VPBank is forecast to have total operating income in the fourth quarter of 2024 reaching VND15,276 billion, up 15% year-on-year. Pre-tax profit is estimated at VND5,659 billion, up sharply by 109% year-on-year.

VCBS estimates that VIB's total operating income in the fourth quarter of 2024 will reach VND7,227 billion, up 23.7% year-on-year, and pre-tax profit will reach VND2,916 billion, up 22.6%.

Forecasting HDBank's total operating income in the fourth quarter of 2024, VCBS said it will reach VND8,565 billion, up 3.7% over the same period last year, and pre-tax profit is expected to be VND4,472 billion, up 2%.

For MB, total operating income in the fourth quarter of 2024 is forecast to reach VND 14,670 billion, up 24.8% over the same period, pre-tax profit is VND 9,006 billion, up 43.2%.

VCBS forecasts that MSB will achieve total operating income of VND3,500 billion in the fourth quarter of 2024, up 28.6% year-on-year. Pre-tax profit is expected to reach VND1,500 billion, up sharply by 147.1% year-on-year.

Forecasting Sacombank's Q4/2024 business results, total operating income is estimated to reach about VND 7,990 billion, up 19.1% over the same period, pre-tax profit is expected to be VND 3,455 billion, up 25.4%.

VCBS forecasts that in the fourth quarter of 2024, Asia Commercial Bank (ACB)'s total operating income will reach VND8,748 billion, up 4.4% year-on-year. Pre-tax profit is expected to be VND5,476 billion, up 8.6% year-on-year.