Banks announced "huge" profit

VCN - Although not all banks have announced business results for the first six months of the year, with positive forecasts and results, high-profit banks are almost fully listed.
VAT refund for foreigners at the store has not been stipulated by law VAT refund for foreigners at the store has not been stipulated by law
Banks should tighten assessment controls of their corporate bonds investments: experts Banks should tighten assessment controls of their corporate bonds investments: experts
Insurance business: a lucrative Insurance business: a lucrative "piece of cake" of banks
Banks announced
Vietcombank has risen to regain the top position from VPBank.

If in the first quarter of 2022, the top position in profit belonged to VPBank due to the recognition of an extraordinary income on insurance premiums with AIA, then after six months, Vietcombank has surpassed to regain the top position with estimated profit of more than VND17,000 billion.

Currently, Vietcombank has not released detailed financial statements for the second quarter of 2022 and six months, but according to SSI Research's estimate, the bank's profit in the quarter is estimated at VND7,000 - 7,300 billion. Thus, in the first 6 months, the bank's profit will range from VND17,000 to VND17,300 billion.

Notably, in addition to the recorded paper profit, Vietcombank also has set up large risk provisions as "savings" for future profits. Vietcombank's leaders said that the bank's bad debt coverage ratio as of the end of June 2022 was 514% – the highest in the market. This bank also said that the total outstanding loans to customers as of the end of June reached VND1.1 quadrillion.

The bank's total assets reached approximately VND1.6 quadrillion, up 13.4% compared to 2021.

The bad debt ratio at 0.6% is within the control plan of 1.5%. NIM reached 3.47%, a sharp increase compared to 2021, the highest among state-owned commercial banks. Profitability ratios ROA and ROE remained high.

Despite falling to second place, VP Bank's business results were also positive with pre-tax profit of more than VND15,300 billion, equivalent to 52% of the year plan, up 70% over the same period.

Consolidated bank credit balance reached VND436,000 billion, of which credit growth of the parent bank alone was 14.3%, higher than the industry average of 9.35%.

As a result, consolidated operating income reached VND31,600 billion, up 37% over the same period last year, of which net fee income increased by 34.5%, income from settled debt increased by 26% compared to the first 6 months.

Banks announced
Six-month profit of some banks by the end of July. Chart: H.Diu.

Techcombank consolidated the 3rd position in profit in the first six months of 2022 with VND14,100 billion. However, looking at the financial statements, the bank's profit decelerated in the second quarter of 2022, partly because the 7% decline in large corporate credit segment (including corporate bonds) due to the tightening market control by regulators. Techcombank's profit growth driver in the second quarter of 2022 was mainly due to the reduction in risk provisioning rather than the growth of core business activities.

Moreover, Techcombank has always had a stable growth in demand deposit ratio (CASA), but after the first six months of 2022, this rate decreased to 47.5% compared to 50.4% at the end of Q1 2022.

Explaining this decrease, Mr. Nguyen Anh Tuan, senior director of development and channel manager at Techcombank, said that after the Covid-19 pandemic, especially the bounce back of business activities since the second quarter, investment demand is strongly deployed, customers tend to shift cash flow to some other products such as real estate and securities investment.

Therefore, the impact is only temporary and Techcombank will have a solution so that CASA is expected to reach 50%.

Standing in the next position in the list of top bank profits so far is MB. As revealed by the bank's leaders, the group's revenue in the first six months of the year reached approximately VND29,900 billion with a profit of VND11,920 billion; in which, the bank's revenue reached nearly VND17,800 billion, up 23% and profit reached VND10,666 billion.

Next is VietinBank and BIDV, although the two have not yet officially announced, according to SSI Research's estimates, accumulated in six months, this amount is VND10,500 billion and VND10,000 billion in VietinBank and BIDV, respectively.

In addition, although not reaching the high profit of tens of trillions of dong, some mid-range banks also had impressive growth. For example, MSB announced its profit before tax in the first 6 months of the year reached nearly VND3,336 billion, up 7% compared to the same period; LienViet PostBank's 6-month profit reached VND3,588 billion, up 76% over the same period last year; AB Bank's profit before tax in the first 6 months of the year reached nearly VND1,662 billion, up 39.5% over the same period; estimated pre-tax profit of ACB in Q2 is VND5,000 billion, raising first half profit to VND9,200 billion; profit in the first 6 months of SHB is VND5,900 billion, VIB is VND5,000 billion.

According to estimates by SSI Research, profit growth in the first 6 months of 2022 of the analyzed banks could average around 26-29% over the same period which is driven by strong credit growth with an increase of 10.3% compared to the beginning of the year and an increase of 18% over the same period.

However, these experts also believe that the profit before tax in the second quarter of some banks is likely to decrease compared to the previous quarter.

In the second half of the year, banks still have high expectations for many growth drivers, especially from credit. According to experts, banks can record high profits in the last 6 months of 2022, because the State Bank (SBV) may increase the credit growth limit (if conditions are right) and Net profit (NIM) is stable compared to 2021. In addition to credit, growth will also be driven by digital banking services, fee income or commerce sponsorship activities.

Hương Dịu/ Thu Phuong

Related News

Regulating goods across Huu Nghi International Border Gate during peak times

Regulating goods across Huu Nghi International Border Gate during peak times

VCN – In order to reduce the pressure on customs clearance of import and export goods for the international border gate pair during peak times, the management agency of Lang Son (Vietnam) has just discussed with the management authority of Pingxiang (China) to strengthen coordination in regulating the means of transporting goods of enterprises on both sides.
Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

VCN - In the short term, applying 5% VAT on fertilizers may increase selling prices, but in the long term, farmers will benefit from this policy. When the fertilizer manufacture is deducted input tax, it will help reduce investment cost and production cost.
Steel industry proactively “coexists” with trade defense lawsuits

Steel industry proactively “coexists” with trade defense lawsuits

VCN - Having regularly to respond to trade defense lawsuits is a big challenge for the Vietnamese steel industry, but this is an opportunity for steel enterprises to improve their competitiveness and integrate more deeply into the global steel market.
VAT policy for on-the-spot imports

VAT policy for on-the-spot imports

VCN- The General Department of Vietnam Customs has instructed Dong Nai Food Industry Corporation on VAT policy for imported tobacco leaves separated from stems.

Latest News

Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.

More News

State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

VCN - According to the report sent to the National Assembly before the 8th Session of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Stipulate implementation of centralized bilateral payments of the State Treasury at banks

Stipulate implementation of centralized bilateral payments of the State Treasury at banks

VCN - The Ministry of Finance (MOF) gathers feedback on the draft Circular regulating the management and use of accounts of the State Treasury opened at the State Bank of Vietnam (SBV) and commercial banks.
Rush to finalize draft decree on public asset restructuring

Rush to finalize draft decree on public asset restructuring

VCN - According to the Ministry of Finance, the draft Decree regulating the rearrangement and handling of public assets is being urgently completed by the Ministry of Finance to submit to the Government for promulgation.
Inspection report on gold trading activities being complied: SBV

Inspection report on gold trading activities being complied: SBV

The State Bank of Vietnam (SBV) has announced that inspections on compliance with legal policies in gold trading activities of credit institutions and gold trading businesses have been completed and an inspection report is being compiled.
Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

VCN -The Government estimates that state budget revenue in 2024 will exceed VND 172.3 trillion, up 10.1% over the estimate, of which tax and fee revenue will reach 13.1% of GDP.
Ensure timely and effective management and use of public asset

Ensure timely and effective management and use of public asset

VCN – In order to promptly and effectively implement public asset management and use, ensuring compliance with legal regulations, the Ministry of Finance has just issued an official dispatch requesting ministries, branches and localities to comply with regulations in the Government’s Decree No. 114/2024/ND-CP dated September 15, 2024.
Accelerating decentralization in public asset management

Accelerating decentralization in public asset management

VCN - Amending the Law on Management and Use of Public Assets aims to improve regulations on accelerating decentralization and improving efficiency in management and use of public assets, and promoting financial resources, ensuring that the unified application the Law on Management and Use of Public Assets and other legal documents.
Difficulty in finding banks eligible to receive compulsory transfers

Difficulty in finding banks eligible to receive compulsory transfers

VCN - Reporting to the National Assembly, the State Bank of Vietnam (SBV) said that one of the difficulties in restructuring the credit institution system is the long process of finding and negotiating banks eligible to receive compulsory transfers.
Businesses can choose a suitable electronic invoice model generated from the cash register

Businesses can choose a suitable electronic invoice model generated from the cash register

VCN - The Ministry of Finance said that individual business households can choose a suitable model to apply electronic invoice solutions from cash registers, depending on the number of invoices used in the year, in the month and the current status of software solutions and technical infrastructure.
Read More

Your care

Latest Most read
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigne
State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

According to the report of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Mobile Version