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| Bank profits increased in the first quarter of this year largely due to improved credit. |
Complete the plan
Mr. Tu Tien Phat, General Director of ACB Bank, said that in the first quarter of 2025, credit is estimated to increase by more than 3%, and mobilization will increase by more than 2%. In the context of increasing bad debts in the system, ACB's bad debt ratio in the first quarter of 2025 still decreased slightly, at 1.34%, helping the bank increase its operational efficiency. ACB's profit in the first quarter of 2025 completed about 20% of the yearly plan of VND 23,000 billion before tax.
Chairman of the Board of Directors of VIB Bank, Mr. Dang Khac Vy said that the Bank's profit in the first quarter of 2025 reached
20-22% of the total pre-tax profit target of over VND11,000 billion for the whole year. Positive credit contributed significantly to this result. As of March 10, credit in the entire banking industry increased by 1.2% and is forecast to increase by more than 2.5% by the end of the first quarter of 2025, while VIB increased by about 3% and is forecast to increase positively in the coming time...
Nam A Bank has just announced its business results for the first quarter of 2025 with pre-tax profit reaching VND 1,214 billion, up 21.52% over the same period last year. As of March 31, 2025, the bank's total assets reached nearly VND 263,000 billion, up more than 7% compared to the beginning of 2025. Outstanding credit reached nearly VND 178,000 billion, up 6% compared to the beginning of the year. Capital mobilization reached nearly VND 204,000 billion, up nearly 14% compared to the beginning of 2024. In terms of asset quality, the bad debt ratio (group 3-5) was at 2.23%; the bad debt coverage ratio was nearly 54%.
Meanwhile, TPBank reported pre-tax profit of nearly VND1,430 billion in the first two months of the year and is expected to earn VND2,100 billion in the first quarter of 2025, up nearly 15% over the same period last year. Accordingly, the Bank's total operating income reached more than VND2,800 billion in the two months and is estimated to reach VND4,300 billion by the end of the first quarter of 2025.
According to the results of the State Bank's business trend survey recently announced, the majority of surveyed credit institutions (74 - 76%) expect the overall business situation and pre-tax profit in the first quarter of 2025 to improve compared to the fourth quarter of 2024, and are expected to continue the improvement trend in the second quarter of 2025. However, the proportion of credit institutions assessing the business situation to decline compared to the previous quarter increased from 8.8% in the fourth quarter of 2024 to 14.8% in the first quarter of 2025.
Bank profits increased in the first quarter of this year largely due to improved credit. According to the State Bank of Vietnam, as of March 25, credit in the entire economy increased by 2.5% compared to the beginning of the year. Experts forecast that credit this year could grow by 15-17%.
Bank confident with annual target
This year, VIB aims to increase credit growth by 22% and maintain an average of 20% over the next 10 years. The bank plans to boost lending to the retail segment - which currently accounts for 80% of VIB's total outstanding loans. Therefore, according to Mr. Vy, the first quarter of 2025 is the Tet holiday, so profits are expected to gradually increase in the coming quarters, especially the last quarters of the year. Therefore, with the profit target set this year, Mr. Vy said, VIB has a basis to complete it.
Mr. Tu Tien Phat also said that with a positive first quarter, ACB has the basis to complete the pre-tax profit target for the whole year of over 23,000 billion VND.
According to data from the State Bank, as of March 25, credit in the entire economy increased by 2.5% compared to the beginning of the year. 
ACB leaders also said that 2025 is the beginning of the 5-year strategic period (2025 - 2030), with the main goal being to maintain a minimum profitability of 20% as in the past 5 years and gradually increase this ability.
Analysts at MB Securities Company (MBS) forecast that TPBank's credit growth this year will reach 16% thanks to the high-income customer segment, the millennial generation (born between 1981 and 1995) and business households with two key products: auto loans and home mortgage loans. Credit growth could reach 17% in 2026, with the recovery of consumer demand and personal income.
MBS forecasts that in 2025, TPBank's net interest margin is expected to increase to 3.54%; pre-tax profit will reach VND9,116 billion, an increase of 20% compared to the level achieved in 2024.
Nam A Bank's 2025 profit target was approved by the General Meeting of Shareholders (GMS) at the recent annual meeting at VND5,000 billion before tax, an increase of 10% compared to the previous year. However, the Board of Directors' target is about VND5,500 billion. Last year, Nam A Bank achieved a profit of VND4,545 billion, an increase of 12% compared to the target assigned by the GMS of VND4,000 billion before tax, so the dividend for 2024 will be distributed at 25%.
The current contribution of non-interest income to Nam A Bank's profit is 13% and is expected to increase to 20%. This year, the bank will also promote cross-selling of insurance products and the industry value chain. In addition, the acceleration of debt collection will also impact profits when reserves are restored and the purchase and sale of government bonds and bonds issued by financial institutions will be promoted.
Source: https://baodautu.vn/loi-nhuan-quy-dau-tang-ngan-hang-tu-tin-ke-hoach-nam-d265539.html
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