VIB's profit in 2023 reached VND 10,700 billion.

Vietnam International Commercial Bank (HoSE:VIB ) has just announced its financial report for the fourth quarter and the entire year of 2023. Accordingly, at the end of the fourth quarter of 2023, VIB recorded net interest income of VND 4,333 billion, an increase of 13.6% compared to the same period last year.

Non-interest income sources also yielded positive results for the bank. Specifically, net profit from service activities reached VND 860 billion, an increase of 2.5% compared to the same period last year; net profit from other activities reached VND 374 billion, an increase of 345% compared to the same period last year.

Notably, VIB's net profit from foreign exchange trading and securities trading activities recorded a strong increase, reversing from negative to positive.

Accordingly, the bank's net profit from foreign exchange trading reached VND 244 billion, compared to a loss of nearly VND 52 billion in the same period last year. Net profit from the buying and selling of investment securities was recorded at VND 30.5 billion, while in the same period last year, this segment resulted in a loss of VND 97 billion for VIB.

Thanks to the growth in non-interest income, VIB's total operating income in the fourth quarter increased by 24% year-on-year to VND 5,842 billion. Consequently, net profit from business operations at VIB also reached nearly VND 4,072 billion, a 30% increase year-on-year.

During the quarter, VIB increased its operating expenses to nearly VND 1,771 billion, a 13.1% increase compared to the same period last year. Notably, to bolster its bad debt portfolio, VIB increased its credit risk provision expenses to VND 1,693 billion, nearly 4.8 times higher than the same period last year. As a result, VIB reported pre-tax profit of VND 2,378 billion in Q4 2023, a decrease of 14%; after- tax profit reached VND 1,902 billion, a decrease of 14.2% compared to the same period last year.

For the full year 2023, VIB recorded net interest income of VND 17,361 billion, a 16% increase compared to 2022. Similar to the fourth quarter, the bank's non-interest income sources also generated positive profits. As a result, the bank's total operating income increased by 23% year-on-year to VND 22,160 billion.

At the end of 2023, VIB reported pre-tax profit of VND 10,703 billion, a slight increase of 1.2%; after- tax profit reached VND 8,562 billion, a 1.1% increase compared to 2022. Meanwhile, VIB also significantly increased its provision for credit risk, nearly 3.8 times higher than the previous year, reaching almost VND 4,867 billion.

In 2023, VIB set a pre-tax profit target of VND 12,200 billion. Thus, by the end of the year, the bank had achieved 87.7% of its profit target.

As of December 31, 2023, VIB's total assets were recorded at over VND 409,880 billion, an increase of 19.5% compared to the beginning of the year. Loans to customers alone amounted to VND 266,074 billion, accounting for 63.9% of total assets and increasing by 14.8% compared to the beginning of the period.

On the other side of the balance sheet, VIB's total liabilities amounted to VND 372 billion, a 20% increase compared to the beginning of the year. Of this, customer deposits totaled VND 236,577 billion, an 18.2% increase compared to the beginning of the year.

According to information from VIB, at the end of 2023, the proportion of retail loans in the bank's total loan portfolio reached over 85%, and over 90% of retail loans were secured loans.

Furthermore, VIB is cautious in granting credit to sectors with potential risks. Over the past four years, outstanding loans to activities and sectors such as BOT projects, renewable energy, corporate bond guarantees, and real estate bond investments have been zero. VIB's corporate bond portfolio is also among the lowest in the market, accounting for only 0.3% of its credit portfolio and primarily held by manufacturing and service companies.

Source