Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank - HoSE: CTG) has just announced its financial report for the fourth quarter of 2023, recording net interest income of VND 14,572 billion, an increase of 14.6% over the same period.
Non-interest income increased and decreased unevenly, with net profit from service activities decreasing slightly by 0.2% compared to the previous year to VND 1,554 billion; net profit from foreign exchange trading reached VND 763 billion, down 31.6% compared to the same period.
The bank's securities trading activities showed an improvement with a profit of nearly VND83 billion, while in the same period last year, this segment caused VietinBank to lose VND32.6 billion. On the other hand, securities trading activities caused VietinBank to lose VND158 billion, while in the same period last year, it made a profit of VND76 billion.
VietinBank's net profit from other activities increased by 17.5% to nearly VND1,540 billion. During the period, VietinBank's net profit from business activities increased by 15.6% to VND12,171 billion. Credit risk provision expenses decreased by 13.3%, from VND5,160 billion to VND4,473 billion.
As a result, in the fourth quarter of 2023, VietinBank reported pre-tax profit of nearly VND 7,699 billion and after-tax profit of VND 6,143 billion, up 43% over the same period last year.
VietinBank said that the increase in net interest income mainly came from the bank's efforts to promote credit growth to meet the capital needs of people and businesses. Net interest income from foreign exchange trading activities decreased due to the decrease in foreign currency buying and selling demand of customers in the second market at the end of the year.
Accumulated in 2023, VietinBank recorded net interest income of VND 53,083 billion, an increase of 11% compared to 2022. Although the fourth quarter recorded a significant decrease in non-interest activities, however, thanks to the bright results from previous quarters of the year, profits from these activities still increased at the end of the year.
Specifically, net profit from services and foreign exchange trading increased by 22% and 19.5% to VND7,154 billion and VND4,248 billion, respectively. In particular, net profit from the bank's securities trading activities increased dramatically, reversing from a loss of VND112 billion last year to VND293 billion.
By the end of 2023, VietinBank set aside VND25,115 billion for credit risk provisions, up 5.6% year-on-year. As a result, VietinBank reported pre-tax profit of VND25,100 billion, up 18.8% year-on-year. After-tax profit correspondingly increased to VND20,133 billion.
According to the separate financial report, VietinBank earned VND24,304 billion in pre-tax profit in 2023. In 2023, VietinBank's Board of Directors approved a separate pre-tax profit plan of VND22,500 billion. Thus, by the end of 2023, this bank achieved 111.6% of the annual profit plan.
As of December 31, 2023, VietinBank's total assets exceeded VND 2 million billion, up 12% compared to the beginning of the year, of which customer loans increased by 16% to VND 1.47 million billion.
Customer deposits increased by 13% to over VND1,410 trillion. Deposits from other credit institutions increased by 86% to VND259,892 billion.
In terms of debt quality, VietinBank's total bad debt increased by nearly 5% from VND 15,824 billion at the end of last year to VND 16,608 billion at the end of December 2023. However, the bank's bad debt ratio still decreased from 1.24% to 1.13% .
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