Banks suffer big losses from securities trading in 2022
Illustrative image (Photo: VNA)
Many banks reported negative results in securities trading and investment in 2022 due to the interest rate hike, the exchange rate uncertainty, the sharp decline of stock indices and the ‘freezing’ of the corporate bond market, cafef.vn reported.At State-owned VietinBank, most of its main business segments experienced positive development in the last quarter of 2022. The bank’s net interest income rose by 23.6% to 12.85 trillion VND and the net income from service activities increased by 53% to more than 1.78 trillion VND while the net income from foreign exchange trading was 1.123 trillion VND, up by nearly 2.5 times year-on-year.
However, VietinBank’s proprietary trading made a loss of 126 billion VND in 2022. The result was much worse than the previous year when the bank made a profit of 720 billion VND in the business segment.
Another State-owned big player Vietcombank was also under the same trend. Though the bank’s net interest income grew by 38.8% to 14.8 trillion VND, its proprietary trading in 2022 made a loss of 115 billion VND, while it made a profit of 137 billion VND in 2021.
Techcombank also had proprietary trading seeing a loss of 241 billion VND in 2022, against a profit of 152 billion VND in 2021.
Sacombank also recorded negative results from proprietary trading. Specifically, the bank lost 20 billion VND from the activity in 2022, while in the previous year it made a profit of 163 billion VND.
TPBank’s pre-tax profit in 2022 was nearly 7.83 trillion VND, up 30% against the previous year, but the bank’s net income from proprietary operation fell by 70%.
According to the quarterly consolidated financial statement recently released by ACB, the bank’s pre-tax profit in 2022 was more than 17.11 trillion VND, up 43% year-on-year, thanks to a decrease in credit risk provisions and an increase in income from service activities (up 22% to 3.53 trillion VND) and from foreign exchange trading (up 20% to 1.05 trillion VND). However, the bank’s securities trading segment plummeted by up to 92%.
Many other banks such as VPBank, SHB and ABBank all recorded lower securities business results compared to 2021.
Fiin Ratings attributed the banks’ negative results in securities trading and investment to the interest rate hike, the exchange rate uncertainty, the sharp decline of stock indices and the ‘freezing’ of the corporate bond market.
Closing the session at the end of 2022, VN-Index and HNX-Index decreased by 32.7% and 56.7%, respectively, compared to the beginning of the year, which caused the stock portfolio held by banks and their subsidiaries of which business results are consolidated on the banks’ financial statements declined sharply./.
Related News

Import and export turnover reaches about US$29 billion in the second half of January 2025
14:52 | 14/02/2025 Import-Export

Securities 2025 expects a breakthrough in scale and quality
14:37 | 10/02/2025 Finance

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion
09:58 | 06/02/2025 Import-Export

Highlights of imports and exports in 2024
20:30 | 25/01/2025 Import-Export
Latest News

Focusing on inspecting inventory of public assets at units with large and complex assets
16:31 | 15/02/2025 Finance

The government seeks approval for revised GDP, CPI targets
16:28 | 15/02/2025 Finance

Fiscal, monetary policies support demand stimulation, price stabilisation
14:49 | 14/02/2025 Finance

Vietnam secures VND 157 billion from state enterprise divestment in 2024
09:16 | 14/02/2025 Finance
More News

Vietnam gears up for potential inflation impact in 2025
14:26 | 11/02/2025 Finance

VN’s credit conditions in 2025 expected to be stable
14:24 | 11/02/2025 Finance

State revenue in first month of the year equal to 14% of the estimate
10:12 | 11/02/2025 Finance

Cash reserves in stock accounts at six-quarter low amid margin rise
08:23 | 10/02/2025 Finance

Five solutions for developing stock market in 2025
10:01 | 07/02/2025 Finance

Minister of Finance Nguyen Van Thang works with GDVC at the first working day after the Tet holiday
14:43 | 04/02/2025 Finance

The stock market after Tết 2025 presents both challenges and opportunities
07:55 | 04/02/2025 Finance

Opportunities and challenges in Việt Nam's crypto boom
14:27 | 03/02/2025 Finance

Đà Nẵng aiming to become a regional financial centre before 2050
19:05 | 01/02/2025 Finance
Your care

Focusing on inspecting inventory of public assets at units with large and complex assets
16:31 | 15/02/2025 Finance

The government seeks approval for revised GDP, CPI targets
16:28 | 15/02/2025 Finance

Fiscal, monetary policies support demand stimulation, price stabilisation
14:49 | 14/02/2025 Finance

Vietnam secures VND 157 billion from state enterprise divestment in 2024
09:16 | 14/02/2025 Finance

Vietnam gears up for potential inflation impact in 2025
14:26 | 11/02/2025 Finance