Risk provision costs increased 20 times, profits dropped 16%
VietABank (Code VAB) has just announced its consolidated financial statements for the fourth quarter with some notable information. In particular, the bank recorded a 16% decrease in profit compared to the same period last year, while the bank's bad debt is also on the rise.
Net interest income in Q4/2023 reached VND 789.5 billion, up 56% over the same period. Operating expenses in the period were reduced by 10% to only VND 239.4 billion.
Investors lost 46% if they bought VAB shares since listing. Currently, the bank's subprime debt has also increased 40 times. (Photo TL)
Thanks to that, VietABank's net profit from business activities increased nearly 3 times compared to the same period, reaching 945.6 billion VND.
However, due to the high increase in subprime debt, the cost of risk provisioning has also increased more than 20 times compared to the same period. The cost of risk provisioning in the fourth quarter of 2023 was recorded at VND 609.5 billion.
As a result, VietABank's after-tax profit was only 336 billion VND, still growing 13% over the same period.
VietABank's accumulated revenue in 2023 reached VND 1,809.5 billion, up 21%. Profit after tax was VND 928.4 billion, down 16% over the same period last year. It can be seen that VietABank's business activities in 2023 were greatly affected by subprime debt.
Subprime debt increased 40 times compared to the same period
At the end of the fourth quarter of 2023, VietABank's total assets were recorded at VND 112,207 billion, up 7% compared to the beginning of the year. Cash decreased by 20%, to only VND 361 billion. Customer loans increased by 10%, recorded at VND 69,059 billion.
Notably, in VietABank's capital structure, customer deposits increased by 23%, reaching VND86,694 billion at the end of the year. Notable debts are Government and State Bank debts accounting for VND3,621 billion and loans from other credit institutions of VND1,070 billion, which have decreased to almost zero.
However, VietABank's bad debt situation is on the rise. Specifically, as of December 31, 2023, substandard debt increased from VND 14.4 billion to VND 574.4 billion, equivalent to an increase of nearly 40 times.
In return, doubtful debt decreased by 28% to VND21.9 billion, and debt with the possibility of losing capital also decreased by 42% to VND530.7 billion. Total bad debt at the end of the fourth quarter accounted for VND1,127 billion, up 18% compared to the beginning of the year. The ratio of bad debt to outstanding loans increased from 1.53% at the beginning of the year to 1.63%.
VAB stock's long slide, market price 'evaporated' by half since listing
On July 20, 2021, VietABank's stock code VAB was officially listed on the stock exchange with a reference price of VND 13,500/share. At that time, VAB was a name that attracted the attention and special interest of investors.
However, after nearly 3 years since being listed, VAB code has not had any significant breakthrough, even decreasing sharply compared to when it was first listed.
VAB's decline started in February 2022, causing the code to lose more than half of its value. From a peak of VND 15,800 on February 7, 2022, VAB plummeted to only VND 6,800/share on November 14, 2022.
Since then, VAB has continuously fluctuated around the price range of 7,000 - 8,000 VND/share. At the trading session on January 30, 2024, VAB is priced at 7,300 VND/share.
Thus, if investors buy VAB shares from the time of listing until now, they will lose about 46% of their investment.
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