Big 4 (4 state-owned banks) including Agribank , BIDV, VietinBank, Vietcombank recently announced some financial indicators this year with positive numbers.
Last year, all four state-owned banks, including Vietcombank, BIDV , Agribank, and Vietinbank, achieved their targets with record profits of $1 billion or more. This year, at the end of the first quarter, each bank's financial picture is different. Profits are positive, but the bad debt ratio also tends to increase slightly.
Vietcombank
Pre-tax profit in the first quarter of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank - stock code: VCB) reached VND10,859 billion, up 1.3% over the same period last year, mainly due to a decrease in risk provision expenses compared to the same period.
Total operating income in the first three months of the year was VND17,234 billion, down 0.3%. Operating expenses increased by 11.3% to VND5,622 billion, causing net operating profit to decrease by 5% year-on-year to VND11,612 billion. Risk provisioning expenses were VND752 billion, only half of the provision level in the same period last year.
As of March 31, the bank's total assets were VND2.1 trillion, up 1.1% from the beginning of the year. Outstanding loans to customers increased by 1.2% to over VND1.46 trillion. Customer deposits decreased by 0.4% to VND1.5 trillion.
The bad debt balance is over 15,035 billion VND, the bad debt ratio on customer loan balance is 1.02%. At the end of last year, this ratio at Vietcombank was 0.96%.
In the first quarter of this year, Vietcombank is expected to continue to be the industry's profit champion (Photo: Tien Tuan).
BIDV
Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV - stock code: BID) reported pre-tax profit of VND7,413 billion in the first quarter, a slight increase compared to the results achieved in the same period last year. With this profit, BIDV temporarily holds the top 2 position in the group of banks that have announced business results.
In the first quarter, after-tax profit reached VND5,955 billion, also slightly up compared to the same period last year and is the highest first-quarter profit ever.
By the end of March, BIDV's total assets had approached VND2.86 trillion, up nearly 4% compared to the beginning of the year, making it one of the largest banks in the system. Outstanding customer loans reached over VND2.1 trillion, up nearly 3% and is currently the bank with the highest outstanding loans in the system.
BIDV's bad debt balance also increased by 37% in the first quarter, increasing the ratio of bad debt to outstanding customer loans from 1.41% to 1.89%.
VietinBank
According to the recently released consolidated financial report for the first quarter, Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank - stock code: CTG) had a pre-tax profit of more than VND 6,823 billion, up 10% over the same period last year. Last year, the parent bank's pre-tax profit was VND 26,300 billion, up nearly 9% compared to 2023, reaching a record profit.
In the first quarter, net interest income reached over VND15,475 billion, up 2% over the same period last year. Profit from services decreased by 9% to VND1,611 billion; profit from foreign exchange trading also decreased by 32% to VND913 billion.
On the other hand, trading securities helped VietinBank earn VND238 billion in profit, while in the same period last year it only reached VND38 billion. The investment securities trading item also turned a loss into a profit of VND91 billion.
More notably, other activities this period earned a profit of more than VND 2,002 billion, 2.6 times higher than the same period in 2024.
Operating expenses increased by 15% to VND5,519 billion, mainly due to increased staff costs. Net operating profit increased by 5% to VND14,934 billion.
State-owned banks make big profits (Photo: Tien Tuan).
VietinBank's total assets as of the end of the first quarter increased by 4% compared to the beginning of the year, to nearly VND2.47 trillion. Customer loans increased by 5%, to VND1.8 trillion, while customer deposits increased slightly by 1% to more than VND1.62 trillion.
VietinBank's total bad debt as of March 31 increased by 31% compared to the beginning of the year. The ratio of bad debt to outstanding customer loans increased from 1.24% at the beginning of the year to 1.55%.
Agribank
The Bank for Agriculture and Rural Development (Agribank) is the only unit in the group of 4 state-owned banks that has not yet announced its first quarter financial report with each item.
However, according to information from the bank, by the end of the first quarter, mobilized capital reached over VND2 million billion, up 2.6% compared to the beginning of the year. Outstanding credit reached nearly VND1.8 million billion, up 3.4%; bad debt was controlled at 1.47%; service revenue grew 8.4% over the same period. Debt recovery after processing reached over VND2,000 billion, up sharply compared to the previous year.
In total, the profit of the three banks BIDV, VietinBank, and Vietcombank reached more than 25,095 billion VND, equivalent to more than 1 billion USD.
Previously, in a survey by the State Bank, most credit institutions recorded an improvement in business performance and profits in the first quarter compared to the previous quarter, although the improvement was lower than expected.
According to forecasts from securities companies, in 2025, the banking industry's profit is forecast to increase by 10-20% in the context of NIM (net interest margin - the percentage difference between interest income and interest expenses) slightly increasing and credit growth reaching the target.
However, profit growth will be highly divergent. Specifically, state-owned banks are expected to report profit growth of 10-12% in 2025, while the dynamic private banks will see profit growth of up to 15-20%. The remaining banks, which are often smaller in scale, will see profits rise by only a modest 6-8%.
Source: https://dantri.com.vn/kinh-doanh/agribank-bidv-vietcombank-vietinbank-kinh-doanh-ra-sao-3-thang-dau-nam-20250430094914130.htm
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