Ambitious profit goals of banks

Many expectations help banks present to the General Meeting of Shareholders high profit growth targets. Photo: Internet

High growth expectations after negative growth

Setting the target of a sharp increase in profit is VPBank. According to the draft 2024submitted to the General Meeting of Shareholders, VPBank targets consolidated pre-tax profit in 2024 to increase by 114% compared to 2023, equivalent to VND 23,165 billion. Of which, the parent bank alone is expected to contribute VND 20,709 billion, VPBankS Securities Company contributes VND 1,902 billion and OPES Insurance Company contributes VND 873 billion to the total profit. FE CREDIT Consumer Finance Company is also expected to have a strong comeback after two consecutive years of losses with an expected consolidated pre-tax profit of VND 1,200 billion in 2024.

To achieve the above plan, VPBank expects credit and mobilization growth to be 25% and 22% respectively compared to the previous year. It is an "ambitious" profit target, because in 2023, VPBank's pre-tax profit will reach about VND 10,804 billion, a sharp decrease of 49.1% compared to 2022.

Similarly, ABBank plans to submit to shareholders for approving a plan on pre-tax profit in 2024 to reach VND 1,000 billion, an increase of 94.5% compared to the results of 2023. But this strong increase must also be on account of the ABBank's low profits in 2023, when pre-tax profits only reached about VND 513 billion, down nearly 70% compared to 2022.

Regarding other indicators, ABBank targets total assets expected to be at 170,000 billion VND by the end of this year, an increase of 5% compared to 2023. Credit and mobilization growth is 13%, the bad debt ratio remains at level below 3%. However, ABBank proposes to retain all undistributed profits of VND 298.7 billion to supplement capital, implement strategic plans, and create internal accumulation to increase charter capital in the future.

Also setting a high profit target in 2024 is TPBank when it plans to submit to the General Meeting of Shareholders for approving a pre-tax profit target of VND 7,500 billion, an increase of 34% compared to the previous year. However, TPBank's General Meeting of Shareholders 2023 set a pre-tax profit target of VND 8,700 billion but it was not completed and only achieved a profit of nearly VND 5,589 billion, a decrease of 28.6% compared to the results achieved in 2022.

According to the General Meeting of Shareholders 2024 documents, this year, SeABank targets pre-tax profit to reach VND 5,888 billion, profit after tax to reach VND 4,710 billion, an increase of 28% compared to 2023. Average return on equity ROE is planned to reach 13.93% in 2024. Along with that, total assets are expected to increase by 10%, capital mobilization increased by 16%, credit growth is expected to be 16.1% and in accordance with regulations.

Although SeABank's profit results decreased slightly by 9% in 2023, this bank has the basis to achieve growth as expected. As the first bank to announce, SeABank said that its profit was positive in the first quarter of the year, reaching more than VND 1,500 billion, up nearly 41% over the same period. This bank's total operating income reached VND 2,706 billion in the first quarter, an increase of 19.54%; Total revenue reached VND 6,438 billion, an increase of 4.6%.

For Techcombank, the bank set a goal of reaching VND 27,100 billion in pre-tax profit in 2024, an increase of more than 18% compared to 2023 results. This can be considered a high increase when Techcombank's profit decreased by 10% in 2023. compared to 2022 - breaking the bank's 10-year positive growth chain due to many influences that caused income to decline and bad debt pressure, so it had to step up risk provisions. However, Techcombank shareholders are also "happier" this year when they are expected to be paid cash dividends at a rate of 15%. Techcombank's Board of Directors also presented a plan to increase charter capital from more than VND 35,225 billion to over VND 70,450 billion through issuing shares from equity capital.

At MSB, profit in 2023 will only increase very slightly by 0.7% compared to the previous year, so in 2024, MSB will submit to the General Meeting of Shareholders for approval the pre-tax profit target of increasing 17% compared to 2023, reaching VND 6,800 billion.

Be cautious about fluctuations

As for Nam A Bank, although 2023 recorded a high profit growth of nearly 50%, the bank's General Meeting of Shareholders approved the consolidated pre-tax profit target 2024 of VND 4,000 billion, an increase of 21% over the previous year. This bank is currently receiving many "happy signals" when it has been approved to list and officially list on HoSE on March 8, 2024, creating favorable conditions to attract investment capital and expand business activities. .

For many other banks, the profit target is more modest, partly due to achieving high growth in 2023, partly due to concerns about unpredictable impacts from the economy.

For example, at the recent General Meeting of Shareholders, VIB leaders said that VIB reached VND 2,600 billion in pre-tax profit in the first quarter of 2024, however, credit growth was low at only 1%, so VIB's General Meeting of Shareholders approved a pre-tax profit plan of VND 12,045 billion in 2024, an increase of 13% compared to the previous year; Targets on credit, capital mobilization, and total assets are all targeted to increase by 20-21% compared to 2023.

Similarly, at the Annual General Meeting of Shareholders, ACB General Director said that by the end of the first quarter of 2024, this bank reached VND 4,900 billion in pre-tax profit - a slight decrease over the same period due to an increase of 3.7% in credit compared to the end of 2023, but ACB must increase provisioning for bad debt risks. In 2024, ACB sets a profit target of VND 22,000 billion before tax, an increase of 10% compared to 2023. Customer loan growth is 14%, maintaining the bad debt ratio below 2%...

At MB, after recording a profit growth of nearly 16% in 2023, in 2024, the bank's Board of Directors plans to submit to the General Meeting of Shareholders for approving a pre-tax profit plan of 6-8% growth, half compared to last year's performance. In the period 2024-2029, MB expects more positive profit growth, an average of about 12%/year. Regarding total assets, the bank aims to increase by 13%, or nearly VND 1.23 million billion, by the end of 2024.