Vietinbank reported pre-tax profit of 17,400 billion VND after 9 months

Vietnam Joint Stock Commercial Bank for Industry and Trade ( VietinBank - HoSE: CTG) has just announced its financial report for the third quarter of 2023, recording net interest income of VND 13,087 billion, a slight increase of 1.27% over the same period.

Non-interest income also grew steadily, with net profit from service activities reaching VND1,815 billion, up 24%; net profit from foreign exchange trading reaching VND1,135 billion, up 35% over the same period.

The bank's trading of business securities and investment securities also recorded a decrease in losses compared to the same period, respectively VND 20 billion and VND 13 billion, while in the third quarter of 2022, losses were up to VND 136 billion and VND 105 billion.

Only net profit from other activities of VietinBank decreased compared to the same period from VND 2,238 billion to VND 1,409 billion.

During the period, VietinBank's net operating profit decreased slightly by 1.33% to VND12,311 billion. Credit risk provision expenses decreased by VND880 billion, from VND8,320 billion to VND7,400 billion.

As a result, in the third quarter of 2023, VietinBank reported pre-tax profit of VND 4,871 billion and after-tax profit of VND 3,895 billion, an increase of 17.2% over the same period last year.

In the first 9 months of the year, Vietinbank recorded net interest income of VND 38,511 billion, up 9.8% compared to the first 9 months of 2022. In particular, interest from trading securities and investment securities had the clearest increase when reversing from negative to positive, reaching VND 209.6 billion and VND 3.9 billion, respectively. Net interest from services and foreign exchange trading increased by 30% and 43%, respectively.

At the end of the first 9 months of 2023, VietinBank set aside VND 20,642 billion for credit risk provisions, an increase of 11% over the same period. As a result, Vietinbank reported a consolidated pre-tax profit of more than VND 17,401 billion for the first 9 months, an increase of nearly 9% over the same period last year. The corresponding after-tax profit increased to VND 13,990 billion.

VietinBank said that net interest income from service activities increased due to growth in service revenues such as guarantees, trade finance, payment services, etc. Net interest income from foreign exchange trading activities increased due to continued implementation of reasonable business strategies, increased timely buying and selling activities, and diversification of foreign exchange product structures.

However, due to the general difficult market conditions, income from other banking activities decreased compared to the same period last year, especially risk handling income.

In 2023, VietinBank's Board of Directors approved a separate pre-tax profit plan of VND22,500 billion. Thus, after 9 months, this bank has achieved more than 77% of the annual profit plan.

As of September 30, 2023, VietinBank's total assets reached more than VND 1,880 trillion, an increase of 4.4% compared to the beginning of the year, of which customer loans increased by 8.7% to more than VND 1,380 trillion.

Bank deposits increased by 4.9% to VND1,310 trillion. Deposits from other credit institutions increased by 76% to VND247,168 billion. Deposits and loans from the Government and the State Bank decreased by 80% to VND21,577 billion.

Regarding debt quality, VietinBank's total bad debt increased by nearly 20% from VND 15,801 billion at the end of last year to VND 18,941 billion at the end of September 2023. As a result, the bad debt ratio increased from 1.24% to 1.37%.

This increase mainly came from group 4 debt (doubtful debt) which increased by 223% compared to the beginning of the year, from VND2,261 billion to VND7,320 billion. Group 5 debt (debt with the possibility of losing capital) increased by 13% to VND7,063 billion. Only group 3 debt (substandard debt) decreased from VND7,305 billion to VND4,557 billion.

On the market, at the end of the trading session on October 31, CTG shares increased by 0.18% to VND 27,700/share with a trading volume of more than 2.8 million units .

Thu Huong

Source