Vietnam Thuong Tin Commercial Joint Stock Bank (Vietbank, UPCoM: VBB) has just announced its financial report for the fourth quarter and the whole year of 2023 with positive results.
Accordingly, at the end of the fourth quarter of 2023, Vietbank recorded net interest income of nearly VND 724 billion, an increase of 55% over the same period due to the bank's drastic implementation of bad debt and off-balance sheet debt collection and settlement.
The bank's non-interest income also showed stable growth with a profit of VND7.8 billion from foreign exchange activities, while in the same period last year, it lost nearly VND7 billion due to the sharp increase in the USD/VND exchange rate in the last months of the year.
By taking advantage of opportunities in the government bond market, the bank's investment securities trading activities also showed impressive growth when reversing from a loss of VND 429 billion in the same period in 2022 to a profit of VND 35.1 billion.
On the contrary, Vietbank's service profit decreased by 31.4% over the same period to nearly VND 26 billion, mainly due to a sharp decrease in service income (mainly due to income from insurance agents, income from account management), while service costs increased (mainly due to digital banking service costs).
Other banking activities also recorded a decline in profit from nearly VND82 billion in the same period last year to VND55.6 billion.
However, Vietbank's net operating profit still increased by 102.9% year-on-year to VND416 billion. During the period, Vietbank also reduced its credit risk provisioning costs to nearly VND23 billion, down 75% year-on-year because the bank controlled its loans and handled overdue and bad debts.
As a result, Vietbank reported pre-tax profit in the fourth quarter of 2023 of nearly VND 394 billion, an increase of 248%; after-tax profit reached VND 313.8 billion, nearly 3.5 times higher than the same period last year.
Accumulated for the whole year of 2023, Vietbank recorded net interest income of nearly VND 2,000 billion, an increase of 10.4% compared to 2022. The bank reported pre-tax net profit of more than VND 812 billion, after-tax profit of VND 647 billion, an increase of 24% compared to 2022 thanks to a reduction in credit risk provisioning costs to VND 111.3 billion, a decrease of 63% compared to the previous year.
However, in 2023, Vietbank set a pre-tax profit target of VND960 billion. Thus, by the end of the year, this bank had only achieved 85% of the set profit target.
As of December 31, 2023, Vietbank's total assets were recorded at VND 138,258 billion, up 24% compared to the beginning of the year. Of which, deposits at the State Bank were VND 9,408 billion, up 5 times, deposits at other credit institutions were VND 26,548 billion, up 53% and customer loans were VND 80,754 billion, up 27% compared to the beginning of the year.
By the end of 2023, deposits of other credit institutions at Vietbank were VND 23,139 billion, an increase of 24%; customer deposits were VND 89,995 billion, an increase of 17% compared to the beginning of the year.
Regarding loan quality, at the end of the year, VietBank's total bad debt was more than VND 2,071 billion, down 11% compared to the beginning of the year. As a result, the bad debt ratio decreased from 3.65% at the beginning of the year to 2.56% .
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