Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank – UPCoM: VBB) has just announced its consolidated financial report for the second quarter of 2025 with not very positive results. Although non-interest income grew impressively, the bank's pre-tax profit in the period still decreased by 21% compared to the same period last year, to only VND 266 billion.
According to the report, VietBank's net interest income in the second quarter of 2025 reached only over VND687 billion, down 15% compared to the second quarter of 2024. This is the key factor that eroded operating efficiency, despite the bright spots from the non-credit segment.
Specifically, net profit from foreign exchange trading doubled to nearly VND31 billion; profit from services increased by VND4 billion, reaching VND34 billion; other income also increased by 88%, reaching VND802 million. In particular, investment securities trading recorded nearly VND10 billion in net profit, 10 times higher than the same period last year.
As of the end of June 2025, VietBank was holding more than VND 27,038 billion in investment securities, of which up to VND 9,120 billion were securities ready for sale - a figure that had increased 3.3 times compared to the beginning of the year.
Improved non-interest income still cannot compensate for the pressure from core activities, VietBank's operating expenses in the second quarter increased by 7% to VND403 billion, of which personnel costs alone increased sharply by 17% over the same period, reaching VND402 billion. The number of employees also increased by 146 people compared to the end of 2024, bringing the total number of employees to 3,010.
Provisions for credit losses in the quarter were also cut by 34% to VND94 billion. However, after-tax profit in the second quarter was still only VND212 billion, down 21% year-on-year.
In the first 6 months of 2025, VietBank recorded a pre-tax profit of more than VND514 billion, up 25% over the same period thanks to the low base of the first quarter and the efficiency of non-interest income sources. However, the bank has only completed about 29% of this year's pre-tax profit target of VND1,750 billion, creating great pressure for the remaining two quarters.
In terms of scale, VietBank's total assets as of June 30, 2025 reached VND178,671 billion, up 10% compared to the beginning of the year. Outstanding loans to customers increased by 9% to VND102,447 billion, while deposits reached VND104,208 billion, up 10%.
Credit quality has generally improved. Although total bad debt has remained almost flat at VND2,567 billion, the debt structure has improved significantly. Substandard debt (group 3) decreased by 75% to VND195 billion, reducing the bad debt/outstanding debt ratio from 2.75% to 2.5%. However, doubtful debt (group 4) and debt with the possibility of losing capital (group 5) increased by 21% and 18%, respectively, to VND600 billion and VND1,771 billion.
In the second half of 2025, VietBank will not only face pressure to achieve its profit target, but also have to control costs well and continue to consolidate core operations amid fierce competition. In addition, the bank is also preparing to transfer its listing to HOSE, which is expected to be completed by the first quarter of 2026 at the latest, and plans to increase its charter capital to over VND 10,900 billion, in order to improve its financial capacity and expand its operations in the coming time.
Source: https://baolamdong.vn/thu-ngoai-lai-khoi-sac-vietbank-van-bao-lai-quy-ii-2025-giam-21-386343.html
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