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| Many banks recorded impressive profit growth in the first quarter of 2025. (Source: Tuoitreplus) |
By the end of the first quarter of 2025, many banks recorded impressive profit growth thanks to effective cost control, prudent credit selection, and strong growth in non-interest income.
Joint Stock Commercial Bank for Foreign Trade of Vietnam ( Vietcombank ) continues to maintain its leading position in the industry with pre-tax profit in the first quarter of 2025 reaching VND 10,859 billion, up 1% over the same period. Although total operating income decreased slightly and operating expenses increased significantly to 11.3%, Vietcombank still maintained its profit thanks to a sharp cut in provision expenses - only VND 752 billion, half of the same period last year.
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Surpassing many names to rise to second place in the profit rankings, Military Commercial Joint Stock Bank (MB) recorded VND8,386 billion, a 45% increase over the same period. MB's strong growth caused Vietnam Joint Stock Commercial Bank for Investment and Development ( BIDV ) to fall to third place, although this state-owned bank still maintained a stable profit of VND7,413 billion, almost unchanged compared to the first quarter of 2024.
Vietnam Technological and Commercial Joint Stock Bank ( Techcombank ) - the bank that used to be the top private bank in terms of profit - unexpectedly dropped to fourth place when its profit decreased by 7%, to VND7,236 billion. This development partly reflects the challenge in credit growth and the pressure to narrow net interest margin in the context of increasing interest rate competition.
The next position belongs to Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) with pre-tax profit of more than 6,823 billion VND, up 10% over the same period last year.
In this quarter's summary table, Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) is also an impressive name when its profit reached VND5,355 billion, up 33% and surpassed the profit of VND5,015 billion of Vietnam Prosperity Joint Stock Commercial Bank (VPBank) to become the second most profitable private bank after Techcombank. Although VPBank still grew well at 20%, it was closely followed by its competitors in terms of net profit scale.
Asia Commercial Joint Stock Bank (ACB) and Saigon - Hanoi Commercial Joint Stock Bank (SHB) are in the next positions with profits reaching VND4,597 billion and VND4,400 billion, respectively.
Notably, Southeast Asia Commercial Joint Stock Bank (SeABank) stood out with a “huge” profit growth rate – nearly 189% over the same period, entering the top 10 with a profit of VND 4,350 billion. Thanks to boosting non-interest income, SeABank has nearly doubled its quarterly plan, becoming the bank with the fastest profit growth rate in the top 10.
In terms of profit growth rate, the group of small banks is making a strong impression after this reporting period. Among the 10 banks with the highest profit growth rate, many names have modest asset size but have made a leap in business efficiency such as Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank) growing up to 238% compared to the same period, SeABank growing 189%, An Binh Commercial Joint Stock Bank (ABBank) growing 125%...
SeABank not only achieved high profits but also demonstrated an effective restructuring strategy, with non-interest income making the main contribution and the bad debt ratio decreasing compared to the beginning of the year. VietBank and ABBank also showed positive signs of recovery when net interest income increased sharply and costs were well controlled.
According to Mr. Nguyen Minh Hoang, Director of Analysis at Nhat Viet Securities Joint Stock Company (VFS), the positive profit results of banks in the first quarter are expected to create a positive effect first of all on the group of bank stocks.
In fact, since mid-April, many stocks in this group have clearly recovered from the bottom. Some stocks such as VAB, STB, MBS... have even returned to the high price range before the strong correction in early April - this partly reflects the market's positive expectations for the first quarter business results.
Regarding the longer-term outlook, the expert believes that if banks' profits continue to maintain growth momentum in 2025, this positive trend will continue to spread to bank stocks and contribute to supporting the general market.
It should be emphasized that banking stocks account for the largest capitalization in the market, so the recovery of this group will be an important driving force for the VN-Index.
Source: https://baoquocte.vn/loi-nhuan-ngan-hang-quy-i2025-vietcombank-duy-tri-vi-tri-dan-dau-techcombank-gay-bat-ngo-312916.html
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