Up to now, 10 banks have announced their business results for the first 6 months of 2023. In general, the profit growth of most banks has slowed down, even decreased sharply, and bad debts tend to increase.
Techcombank's 6-month profit drops 19%, CASA recovers after 4 negative quarters
Vietnam Technological and Commercial Joint Stock Bank (Techcombank) announced its business results in the second quarter of 2023 with pre-tax profit equivalent to the first quarter, reaching VND 5,649 billion; accumulated in the first half of the year reached nearly VND11,300 billion, down 20% compared to the same period last year (VND14,106 billion). The main reason for Techcombank's profit decline was the rapid increase in deposit costs, leading to a narrowing of net interest income. Techcombank's other business segments grew well.
As of the end of June, the bank's total assets reached VND732,500 billion, up 1.2% compared to the end of last year. Credit and deposit growth reached 8.5% and 6.6% respectively compared to the beginning of the year. Capital adequacy ratio (CAR) according to Basel II was at 15.1%..
The customer's deposit balance reached VND381,900 billion, up 18.8% over the same period last year. In, CASA balance reached VND 133,400 billion, up 7.5% q-o-q, and up 12.6% y-o-y in 2022. The ratio of demand deposits to total deposits (CASA) increased from 32% at the end of Q1 to 34.9% at the end of Q2 - reversing the upward trend after 4 quarters of decline. Term deposits reached VND 248,600 billion, up 47.1% over the same period last year.
The credit balance of VietinBank increased by 6.6%
Mr. Nguyen Hoang Dung - Deputy General Director in charge of VietinBank's Executive Board recently announced the preliminary results of business activities in the first 6 months of 2023.
Specifically, total assets grew by 2.6% compared to the end of 2022; Credit balance grew by 6.6% compared to the end of 2022, complying with the credit growth limit of the State Bank;
Capital mobilization is balanced in line with credit growth, ensuring liquidity ratios. Mobilized capital increased by 6.2% compared to the end of 2022;
Non-interest income grew positively (21%), and the structure of non-interest income in the total income of VietinBank continued to be improved, reaching more than 26%.
The bad debt ratio was controlled at 1.1%, complying with the planned limit. NPL coverage ratio is at 170%, continuing to remain high.
Bao Viet Bank's profit in 6 months is nearly VND25 billion
Bao Viet Commercial Joint Stock Bank (Bao Viet Bank) has just announced its financial statements for the second quarter of 2023 with a pre-tax profit of VND 17.8 billion, approximately the same period last year.
Accumulated in the first 6 months, the bank's pre-tax profit reached VND 24.7 billion, down 6.9% over the same period last year.
As of June 30, 2023, Bao Viet Bank's total assets reached VND 78,530 billion, up 0.3% compared to the end of last year. Which, customer loans reached 37,910 billion VND, up 14.2%. Customer deposits of Bao Viet Bank also recorded a growth of more than 12% to VND 46,395 billion.
In terms of asset quality, bad debt balance (groups 3 to 5) reached VND 1,756 billion, up 58.3%. The NPL ratio increased from 3.34% at the end of last year to 4.69%. Which, the debt with the possibility of losing capital doubled compared to the end of last year from VND746 billion to more than VND1,523 billion.
ABBank: Q2 profit fell deeply
ABBank's pre-tax profit in the second quarter of 2023 was only 67 billion VND, down 94% over the same period. Accordingly, in 6 months, the bank's profit was at VND 679 billion, down 59% over the same period.
As of June 30, 2023, ABBank's total assets reached VND 154,447 billion, up 18.7%. Outstanding loans to customers increased by 2.5% to VND 84,020 billion. Customer deposits increased by 4%, reaching VND 87,481 billion.
ABBank's bad debt increased by 61% in 6 months to VND3,820 billion. The bad debt ratio calculated according to the guidance of the State Bank in Circular 11/2021/TT-NHNN is still guaranteed to be below 3%, at 2.86%.
Sacombank: Profit in 6 months reached more than VND4,700 billion, reaching 50% of the year plan
As of June 30, 2023, Sacombank's pre-tax profit reached VND 4,755 billion, up 63.5% over the same period, reaching 50.1% of the plan assigned by the General Meeting of Shareholders. Total net income in the first 6 months reached more than 13,500 billion, up more than 20% over the same period last year. Operating costs are controlled below the planned schedule. Accordingly, the CIR ratio reached 47.8%, down 0.6% over the same period last year.
Sacombank's total assets reached more than 622 trillion VND, an increase of more than 5% compared to the beginning of the year, of which profitable assets increased by 7.5%. Total mobilization reached more than 549 trillion, up nearly 6%; in which, mobilization from economic organizations and residents increased by more than 10%.
MSB: 6 months' profit is more than VND3,500 billion, completing 56% of the year plan
MSB said that the bank's 6-month accumulated consolidated pre-tax profit reached VND3,548 billion, equivalent to 56% of the year plan.
As of June 30, 2023, MSB's total assets reached more than VND 237,800 billion, an increase of 11.8% compared to December 31, 2022. Total customer loans accumulated in the past 6 months reached nearly VND 136,600 billion, an increase of 13.2% compared to the beginning of the year, higher than the industry average, with a large contribution from strategic segments such as individual customers and small and medium enterprises.
Monthly customer deposits recorded nearly VND126,300 billion, up 7.8% compared to the end of 2022, of which savings and margin deposits increased by 24% and 30% respectively.
Regarding operational safety indicators, MSB's individual bad debt ratio (NPL) as of 30/6/2023 was controlled at 1.73%.
TPBank: Profit before tax in the first 6 months of the year reached nearly 3,400 billion VND
TPBank has only updated preliminary business results. The bank said it continued to record positive pre-tax profit, reaching nearly VND 3.4 trillion in the first 6 months of the year. The bank's main source of income still comes from net interest income, but the proportion of non-interest income has improved positively when increasing to 28% of total income. Which, net income from services continued to record strong growth when reaching VND 1.5 trillion as of June 30, equivalent to an increase of 26% over the same period last year.
Also according to data from TPBank, total deposits at the end of June reached over VND 302 trillion, up 9.6% over the same period last year. Total assets reached nearly VND343.5 trillion, up 10.5% over the same period.
BacABank: 6-month profit increased by 10%, bad debt is low
BacABank is the first bank to announce its financial statements for the second quarter of 2023. The bank's pre-tax profit in the second quarter of 2023 reached VND 139 billion, down 25% compared to the same period in 2022. However, thanks to positive results in the first quarter, accumulating in the first 6 months, BacABank's pre-tax profit reached VND 474 billion, up 10%.
As of June 30, 2023, BacABank's total assets reached VND 135,266 billion, up 5% compared to the beginning of the year. Outstanding loans to customers increased by 2.6% to VND96,595 billion. Customer deposits increased by 8.7% to VND 105,366 billion.
The bank's bad debt increased by 32% in 6 months to VND679 billion, mainly because group 3 debt (substandard debt) increased sharply by 316% to VND175 billion. Accordingly, BacABank's bad debt/loan ratio increased from 0.55% to 0.7%, still among the lowest in the system.
BacABank's provision ratio for bad debts is also in the leading group, reaching 158% as of June 30, 2023. Previously, this rate reached 204% by the end of 2023.
PGBank: 6 months' profit before tax reached 303 billion
The bank's pre-tax profit in the second quarter of this year reached VND 150 billion, up 27% over the same period. Accumulated in the first 6 months, pre-tax profit reached VND 303 billion, up 24%.
As of June 30, 2023, PGBank's total assets reached VND 46,986 billion, down 4.1% compared to the beginning of the year. Outstanding loans to customers increased by 4.1% to VND30,249 billion. Customer deposits decreased by 0.1% to VND 31,228 billion.
The bank's bad debt increased by 12.7% to VND839 billion, accounting for 2.77% of total outstanding loans. This rate is up from 2.56% at the beginning of the year.
LPBank: Q2 profit halved over the same period
LPBank also announced its financial statements, recording a profit in the second quarter of 2023 at only VND 880 billion, down 51% over the same period. Accordingly, accumulated in the first 6 months, the bank's profit reached 2,446 billion, down 32%.
As of June 30, 2023, LPBank's total assets reached VND 350,243 billion, an increase of 6.9% compared to the beginning of the year. Outstanding loans to customers increased by 7.6% to VND 253,392 billion. Customer deposits increased by 3.8% to VND224,126 billion.
LPBank's bad debt increased by 65% in 6 months to 5,656 billion dong. Which, debt that is likely to lose capital (debt group 5) increased by 80% to VND2,438 billion LPBank's bad debt-to-loan ratio increased from 1.46% at the beginning of the year to 2.23% at the end of June. NPL coverage ratio declined, from 142% to 78%.
(CafeF)