Banks' third quarter performance forecast: Only one bank's profit declines

VCN - It is forecasted that in the third quarter of 2021, most banks will still have positive growth, only one bank sees a decrease in profit compared to the same period last year.
Banks' third quarter performance forecast: Only one bank's profit declines
The third quarter profits of banks were all positive. Photo: Internet

At present, only TPBank has announced nine months of 2021 operating results with a 15% increase in credit. The bank's total operating income reached VND9,868 billion, up 39% over the same period last year. As a result, by the end of September, TPBank achieved 75.76% of the year's profit plan.

TPBank's announcement did not give a specific profit figure, but the calculation was based on the profit plan set at the beginning of the year at VND5,500 billion, meaning that the bank's nine-month profit reached more than VND4,166 billion, an increase of 37.7% over the same period last year.

For other banks, according to SSI Research's forecast, in the third quarter of 2021, Techcombank will be the bank with the highest profit with VND5,200 billion in pre-tax profit, thanks to a 16% increase in credit.

The second in terms of profit in the third quarter was Vietcombank with about VND5,000 billion in pre-tax profit thanks to credit growth of 11.5% compared to the beginning of the year, but it had to step up cutting interest rates to support customers and increase risk provisions.

However, for nine months and forecast for the whole year, Vietcombank is still forecasted to be at the top in terms of profit of the whole system.

Specifically, in nine months, Techcombank forecasts a profit of VND16,700 billion and Vietcombank's VND18,600 billion. For the whole of 2021, Techcombank is likely to reach VND22,300 billion in profit, up 40.8% over the same period last year.

Meanwhile, Vietcombank achieved VND24,300 billion in profit, up only 5.4%.

In 2022, SSI forecasts, Vietcombank will regain its growth momentum with an increase of 23%, reaching VND29,900 billion in profit, Techcombank is forecasted to increase profit at 20%, reaching VND26,700 billion.

MB is also forecasted to grow well in the third quarter, reaching about VND3,300-3,400 billion, thanks to an increase of 12-13% in credit in the first nine months. For the whole year, MB's profit may increase by 42.2% and next year's profit may increase by 21%.

Meanwhile, like Vietcombank, VietinBank had to implement a credit program to support customers, so its profit growth was "modest" in the third quarter, reaching only VND3,000 billion, up 3.3% over the same period last year. SSI forecasts that VietinBank's full-year profit will only increase by 2.7%, reaching VND17,300 billion and can only regain its growth form next year after reaching VND21,800 billion.

For VPBank, SSI said that the bank's profit in the third quarter of 2021 was only VND3,200 billion due to the negative impact of Covid-19. However, this estimate of SSI's profit for VPBank does not include the sudden income of nearly $1.4 billion that VPBank earned from the sale of 49% of FE Credit's capital to a Japanese partner.

Among the forecasted banks, VIB is the only bank that SSI thinks profits will decrease. Accordingly, although credit growth increased by 11% compared to the beginning of the year, the bank's net interest income was still negatively affected by VIB's restructuring to support customers. In addition, the insurance business, which usually accounts for 20% of VIB's pre-tax profit, is under pressure during a long period of social distancing.

According to SSI, VIB's pre-tax profit in the third quarter of 2021 was only VND1,300-1,400 billion, down 16% compared to the same period last year. But in nine months, the bank still achieved a profit of VND5,500 billion, up 36.6% over the same period in 2020.

According to the results of the survey on business trends in the fourth quarter of 2021 for all credit institutions of the State Bank, in the third quarter, credit institutions said that pre-tax profit and operating results business activities (net interest income, net fee and service income, proprietary income) tended to decline compared to the previous quarter.

In 2021, 83.7% of credit institutions expect their profit before tax to grow positively, 3% expect it to be unchanged, and 13.3% are worried about decreasing profits.

By Huong Diu/Quynh Lan

Related News

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.
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.
Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Recently, the implementation of a series of policies on tax, fee, and land rent exemption, reduction, and deferral has provided timely support for businesses to recover and develop, thereby making positive contributions to economic growth.
Applying tax on animal feed ingredient faces problems due to specialized regulations

Applying tax on animal feed ingredient faces problems due to specialized regulations

VCN - The unified application of regulations of specialized legal documents related to value-added tax (VAT) policies on imported raw materials for animal feed has caused many problems. Notably, the accurate identification for imported raw materials for animal feed not only causes difficulties for the enterprise but also for the enforcement authority.

Latest News

Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

VCN - According to the Ministry of Agriculture and Rural Development, Vietnam's capacity to export over 50 billion USD worth of agricultural products annually, coupled with established supply chains, provides a significant advantage for Vietnamese agricultural and aquatic products to penetrate the Halal market.

More News

Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Vietnam and UAE trade sees billion-dollar growth

Vietnam and UAE trade sees billion-dollar growth

VCN - According to General Department of Vietnam Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) reached nearly US$5 billion, an increase of more than US$1.4 billion over the same period last year.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Read More

Your care

Latest Most read
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - At the regular Government meeting in September 2024, Minister of Industry and Trade Nguyen Hong Dien assessed: import and export continued to be a bright spot, recording a positive recovery compared to the same period last year.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

According to the Ministry of Agriculture and Rural Development, Vietnamese agricultural and aquatic products could penetrate the Halal market.
Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Mobile Version