The Bank for Foreign Trade of Vietnam (Vietcombank, VCB) has just announced its third quarter business results with profits continuing to grow.
In the last three months, this bank's pre-tax profit was over VND9,000 billion, up nearly 20% over the same period last year. In the first nine months of the year, Vietcombank's pre-tax profit was nearly VND30,000 billion, up more than 18% and continued to hold the top position in the entire banking system in terms of profit. The main growth driver came from reducing operating costs and credit risk provisions.
In the third quarter, Vietcombank recorded nearly VND12,600 billion in net interest income, a slight decrease compared to the same period last year. Similar to other banks, the impact of the period of high capital costs affected the "main rice pot" - credit activities. Vietcombank's interest expenses and equivalents increased by more than 56%, while interest income increased by only 17%.
Revenue from services also decreased compared to the same period, while foreign exchange activities and trading of business securities maintained a similar pace.
A bright spot in cost management helped Vietcombank's operating costs in the third quarter decrease by nearly 18%, with net operating profit increasing slightly compared to the previous year to over VND10,500 billion. Credit risk provisioning costs also decreased by nearly 50%, down to nearly VND1,500 billion.
The cumulative results for the first 9 months were similar. The bank's main business activities did not differ much from the same period last year, with net interest income increasing slightly to over VND40,000 billion, and revenue from services reaching nearly VND4,000 billion. Thanks to reduced operating costs and provisions, Vietcombank reported a pre-tax profit increase of more than 18%.
By the end of the third quarter, the bank's total assets recorded more than 1.7 million billion VND. Of which, customer loans by the end of September increased by nearly 4% compared to the beginning of the year.
Minh Son
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