Vietnam Joint Stock Commercial Bank for Industry and Trade ( VietinBank - HoSE: CTG) has just announced its financial report for the first quarter of 2024 with the main source of revenue being net interest income reaching VND 15,174 billion, an increase of 20% over the same period last year.
During the period, the bank's non-interest income sources showed a decline when net profit from service activities decreased by 11% compared to the same period last year to VND 1,778.8 billion; net profit from other activities decreased by 23.7% compared to the same period in 2023 to VND 778 billion. Income from capital contribution and share purchase decreased by 48.6% to VND 59.5 billion.
Notably, investment securities activities caused VietinBank to lose VND106 billion, while in the first quarter of 2023, this activity brought the bank a profit of nearly VND15 billion.
On the other hand, VietinBank's net profit from foreign exchange trading increased by 14.6% year-on-year to VND1,344 billion. Net profit from trading securities increased by 36.5% to VND38.3 billion.
During the period, to strengthen the shield of bad debt handling, VietinBank increased risk provisioning costs to VND8,049 billion, up 19.7% over the same period. The increased risk provisioning eroded the bank's profits.
As a result, in the first quarter of 2024, VietinBank reported pre-tax profit of VND 6,210 billion, up 3.8%; after-tax profit was VND 5,003 billion, up 3.5% over the same period last year.
At the 2024 Annual General Meeting of Shareholders on April 27, VietinBank approved its 2024 business plan with total assets at 8-10% compared to 2023 and a controlled bad debt ratio of below 1.8%.
The remaining indicators such as credit balance, pre-tax profit, and operating safety ratio will be subject to approval by the State Bank or competent authority.
Chairman of the Board of Directors of VietinBank Tran Minh Binh said that every year, the bank always reviews and adjusts its plans to suit the market based on research and opinions of experts.
“We assess that the plan is highly feasible and has a high probability of success. Regarding the 2024 plan, the target for total asset and capital growth is currently at the lowest level, we will try to achieve higher targets,” Mr. Binh shared.
As of March 31, 2024, VietinBank's total assets were recorded at VND 2.08 million billion, up 2.2% compared to the beginning of the year. Of which, deposits at the State Bank have decreased sharply from VND 40,597 billion in 2023 to nearly VND 17,341 billion. Deposits and loans to other credit institutions were VND 332,707 billion, up 19.9% compared to the previous year.
As of this date, VietinBank's customer loans reached VND1,510 trillion, up 2.8% year-on-year. Customer deposits reached nearly VND1,430 trillion, up slightly by 1.2% year-on-year.
Regarding loan quality, VietinBank's total bad debt at the end of March 2024 was VND 20,401 billion, mainly due to the increase in substandard debt (group 3 debt) from VND 2,598 billion last year to VND 6,685 billion and doubtful debt (group 4 debt) increased from VND 4,721 billion to nearly VND 5,539 billion. As a result, the bank's bad debt ratio increased from 1.13% to 1.35%.
At the recent General Meeting of Shareholders, talking about bad debt, Mr. Nguyen The Huan, member of the Board of Directors of VietinBank, said that in 2024, looking at the general context and reviewing the internal assessment of the bank, VietinBank aims to control bad debt below 1.8% and group 2 debt below 3%.
Chairman Tran Minh Binh informed that credit quality is currently under control, VietinBank has had a classification starting from January, and if a debt shows signs of being late for about 9 days, the bank must pay attention .
Source
Comment (0)