A “picture” of bank profits in the first nine months of 2024

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Statistics from 29 banks (excluding Agribank) that have published their Q3 and nine-month financial reports for 2024 show a total pre-tax profit of over 218 trillion VND, a 16% increase compared to the same period last year.

8 banks with profits exceeding 10 trillion VND

Chart: H. Diu. Compiled from the 9-month 2024 financial statements of banks

Vietcombank retains its leading position with a nine-month pre-tax profit of 31.533 trillion VND, a 6.7% increase compared to the same period in 2023.

This giant maintained its profit growth momentum in Q3 2024, thanks to a nearly 80% reduction in provision expenses. Furthermore, a recovery in net interest income also contributed to Vietcombank's pre-tax profit.

Techcombank climbed three spots compared to the same period last year, securing the second position with 26.906 trillion VND, a 33.9% growth compared to the same period in 2023.

The "10 Trillion VND Profit Club" also includes six other banks: BIDV, MB, VietinBank, ACB, VPBank, and HDBank.

Compared to the same period last year, VPBank and HDBank are new additions to this club.

The combined profit of these eight banks accounts for over 70% of the total bank profits.

In the ranking of private commercial bank profits, Techcombank significantly outpaces its competitors, with a nearly 7 trillion VND lead over ACB, which ranks second. This highlights the increasing profit disparity among banks.

Following the banks with profits exceeding 10 trillion VND are banks with profits in the trillion VND range, including SHB, LPBank, Sacombank, VIB, TPBank, and MSB. Then come banks with profits in the hundred billion VND range, such as VietBank, BacABank, VietABank, and KienlongBank.

Chart: H. Diu. Compiled from the 9-month 2024 financial statements of banks

Regarding profit growth rates, the rankings shift, with many small and medium-sized banks recording double- or even triple-digit growth compared to the same period last year, while many large banks only achieved single-digit growth.

BVBank recorded the highest increase, nearly doubling its profit from 61.4 billion VND in the first nine months of 2023 to nearly 182 billion VND in the same period of 2024, thanks to net operating profit reaching over 631 billion VND, tripling the figure from the previous year.

LPBank follows with a total pre-tax profit of over 8.818 trillion VND, a nearly 140% increase compared to the first nine months of 2023. This is attributed to over 10.887 trillion VND in net interest income, a 38.5% year-on-year increase. Non-interest income also saw significant growth.

In absolute terms, Techcombank experienced the largest profit growth, increasing by over 5.7 trillion VND compared to the same period last year. VPBank follows with a 5.6 trillion VND increase, and LPBank with a 5.1 trillion VND increase.

Chart: H. Diu. Compiled from the 9-month 2024 financial statements of banks

Conversely, seven out of 29 banks recorded a decline in profits. NCB, despite positive growth in credit and service income, experienced a smaller loss compared to the same period last year.

PVCombank recorded the steepest decline, primarily due to a 25-fold year-on-year increase in credit risk provision expenses, reaching 1.206 trillion VND.

Similarly, at ABBank, a more than two-fold increase in risk provision, reaching nearly 530 billion VND, coupled with less effective business and investment activities, resulted in a 31% decrease in net operating profit.

Consequently, ABBank incurred a pre-tax loss of over 343 billion VND in Q3 2024.

Thanks to positive results in the first two quarters, ABBank still achieved a nine-month cumulative profit of nearly 239 billion VND, but this represents a more than 66% decrease compared to the same period in 2023.

BIDV’s total assets exceed 100 billion USD

Regarding total assets, notably, after nine months of 2024, BIDV became the first Vietnamese bank to surpass 100 billion USD in total assets, accounting for approximately 12% of the system's total assets.

The largest portion of BIDV's assets is customer loans, exceeding 1.95 quadrillion VND, a nearly 10% increase since the beginning of the year.

However, non-performing loans stand at 33.385 trillion VND, representing 1.74% of total outstanding loans and a more than 49% increase since the beginning of the year.

Chart: H. Diu. Compiled from the 9-month 2024 financial statements of banks

Following BIDV in total assets are VietinBank and Vietcombank, with over 2.2 quadrillion VND and 1.93 quadrillion VND, respectively.

Agribank has not yet released its Q3 2024 financial report, but according to its semi-annual report, its total assets reached 2.08 quadrillion VND, a 1.8% increase from the beginning of the year.

Among private banks, MB leads in total assets with over 1 quadrillion VND, followed by Techcombank with over 927 trillion VND.

The combined assets of the top 10 banks reach over 12.3 quadrillion VND, representing 76% of the total assets of the 29 banks.

In terms of growth rate, LPBank leads with a total asset increase of over 19% after nine months.

Nam A Bank follows with a 13.8% increase compared to the beginning of the year, reaching nearly 240 trillion VND. NCB, BVBank, and MSB also demonstrate high growth rates in total assets.