Current business situation of many banks

Banks have begun announcing their third quarter business results this year with mixed profits, with many banks reporting decreased profits.

Bank Asia Commercial Joint Stock Bank ( ACB ) said, profit before tax Q3 reached VND4,844 billion, down 4% over the same period. Accumulated for 9 months, ACB's profit increased by 2%, reaching VND15,335 billion. In Q3, the decrease in non-interest income dragged down ACB's pre-tax profit. The main reason was that ACB no longer recorded extraordinary revenue from investment securities.

Vietnam International Commercial Joint Stock Bank ( VIB ) announced its business results for the first 9 months of 2024 with profit pre-tax profit reached VND6,600 billion, down 21% over the same period. It is estimated that in the third quarter alone, VIB's profit reached about VND1,995 billion, down 26%. Thus, after 9 months, VIB has only achieved about 54.8% of the plan approved by the General Meeting of Shareholders (VND12,045 billion).

Kienlong Commercial Joint Stock Bank (KienlongBank) announced its third quarter profit at VND209 billion, down 12% year-on-year. However, in the first 9 months, the bank's cumulative profit was VND761 billion, growth 19%.

In the third quarter, income net profit KienlongBank's profit reached VND866 billion, up 90% over the same period. Thanks to that, the bank's total operating income (TOI) exceeded VND1,000 billion. However, operating expenses increased by 80%, to VND665 billion, and provision expenses increased by 50%, to VND138 billion, causing profits to decline.

Bao Viet Commercial Joint Stock Bank (BaoViet Bank) said its 9-month profit was over 32 billion VND, down about 5% compared to the same period last year.

Meanwhile, there are banks with good profit growth. Recently, Prosperity and Development Joint Stock Commercial Bank (PGBank) announced that its pre-tax profit in the third quarter reached VND76.9 billion, up 35.8% over the same period. Accumulated profit for 9 months, PGBank reached VND344.4 billion, down 4.4% over the same period.

In the third quarter, PGBank's net interest income grew by nearly 50% year-on-year, bringing in VND416 billion and being the main driver of the bank's profit growth. In addition, non-interest income also increased by 34.7%, bringing in nearly VND32 billion to the bank.

Loc Phat Vietnam Joint Stock Commercial Bank ( LPBank ) said that its pre-tax profit in the third quarter increased by 133% compared to the same period, reaching VND2,889 billion. Accumulated in 9 months, the bank's pre-tax profit reached VND8,818 billion, up 139% compared to the same period.

Saigon Joint Stock Commercial Bank for Industry and Trade (SaigonBank) said that pre-tax profit reached more than VND200 billion, achieving approximately 55% of the 2024 plan. In the same period last year, SaigonBank's profit reached more than VND248 billion.

Analyzing the business situation of banks in the third quarter of 2024, MBS Securities Company said that the banking industry maintained a stable growth rate. In particular, credit in the third quarter improved compared to the second quarter thanks to the recovery of production and business activities.

MBS experts predict that there will be banks with profit growth lower than the industry average or negative growth.

According to the investigation results of State Bank, the overall business situation and pre-tax profit of the banking system in the third quarter of 2024 improved but did not meet expectations in the previous survey.

71.9 - 76.3% of credit institutions expect the business situation to be more positive in the fourth quarter and this year. In this survey, the percentage of credit institutions expecting pre-tax profit to grow positively compared to 2023 is 79.6% (downgraded from the expected rate of 86.2%). credit institution (having the same expectation as in the previous survey), 15.9% of credit institutions are concerned about negative profit growth this year (higher than the 11% of credit institutions expected in the previous survey) and 4.4% estimate that profits will remain unchanged.

In the third quarter, the bank The internal factors continue to improve compared to the previous quarter and are expected to continue to improve throughout the year. However, there are still 5.4% bank Overall concern about internal factors that "degrade" the unit's business situation during the year, mainly due to the unit's financial capacity, along with the unit's risk management policies and capacity and the unit's human resources.

Source