Viet A Commercial Joint Stock Bank (VietABank) has just announced its audited financial report for 2023 with profits slightly decreasing compared to 2022. On the contrary, the bank's total assets, customer deposits, and loans all increased compared to 2022.
In particular, income from investment securities (VietABank realized part of the profit from the Government bond portfolio held) reached VND 410 billion, an increase of 870% compared to 2022.
According to the audited financial report, by the end of 2023, VietABank's total assets reached VND 112,195 billion, an increase of 6.7% compared to 2022. Of which, outstanding loans to customers reached more than VND 69,059 billion, an increase of 10.4% compared to 2022.
Customer deposits reached nearly VND 86,694 billion, up 23.5% compared to 2022. Consolidated pre-tax profit reached VND 916 billion. Net cash flow from operating activities in the consolidated financial statements has improved significantly compared to 2022.
Explaining why profits have not met expectations, VietABank said that in 2023, the bank continuously reduced lending interest rates for existing customers, and at the same time, the bank implemented many preferential interest rate programs to support customers facing many difficulties according to the policies of the State Bank and the Government to promote economic development, which affected net interest income.
Besides, increasing debt settlement and risk provisioning are also among the reasons for the decrease in profits.
In 2024, in order to increase charter capital and meet the investment needs of customers, VietABank plans to issue the second batch of bonds with a total expected offering value of VND 300 billion. Previously, at the end of 2023, VietABank successfully issued VND 500 billion of Tier 2 capital-increasing bonds with a term of 7 years in the first offering.
The issuance of this bond helps VietABank increase Tier 2 capital, continue to strengthen operational safety indicators, and meet customers' loan needs .
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