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Banking & Finance

Five banks record high profits in Q1

Released at: 08:00, 06/05/2017

Five banks record high profits in Q1

Illustrative image (Source:luatduonggia.vn)

The first quarter proved to be a positive period for five of Vietnam's banks.

by Duy Anh

Many commercial banks posted positive business performance in the first quarter of this year, earning high profits.

ACB

The Hanoi-based bank recorded growth in almost all business activities during the first quarter. Interest income stood at VND1.9 trillion ($85.6 million), up 20.7 per cent year-on-year, while net income from services rose 23.2 per cent, to VND248 billion ($10.9 million).

Net profit from foreign currency and securities and securities investment trading all grew strongly.

Though operating expenses rose 37 per cent year-on-year and risk provision expenses were up 2.5-fold, pre-tax profit increased 53 per cent to VND595 billion ($26.2 million).

As at March 31, ACB’s total assets were more than VND251.5 trillion ($11.06 billion), up 7.6 per cent since end-2016. Customer loans reached VND177.4 trillion ($7.8 billion), up 8.6 per cent quarter-on-quarter, while customer deposits were 6.8 per cent higher than at end-2016, standing at VND221.2 trillion ($9.73 billion) as at March 31.

Its consolidated financial statement for the quarter showed it had more than VND1.9 trillion ($83.6 million) in bad debts, up 34.3 per cent compared to end-2016. Doubtful debts surged 3.5-fold since the start of the year, reaching VND637 billion ($20 million). Subprime debts were up 11.7 per cent quarter-on-quarter to VND226 billion ($9.9 million) while potentially irrecoverable debts remained at VND1.04 trillion ($45.7 million). The bank’s bad debt ratio rose to 1.08 per cent as at end-March from 0.88 per cent at end-2016.

SHB

Saigon Hanoi Bank (SHB) had total assets of VND247.91 trillion ($10.9 billion) as at end-March, up 6 per cent since end-2016. During the first three months, customer loans rose 6 per cent against end-2016 to VND172.1 trillion ($7.57 billion) while customer deposits rose 5.7 per cent to VND176 trillion ($7.74 billion).

Interest income rose slightly, by 4 per cent year-on-year, to VND924 billion ($40.6 million), while net profit from services rose 2.9-fold year-on-year to VND77 billion ($3.4 million). Foreign currency trading earned a profit of VND27 billion ($1.2 million), while other services earned VND22 billion ($967,780).

Operating expenses rose 9.2 per cent year-on-year to VND553 billion ($24.3 million) while risk provision expenses were up 14 per cent to VND191 billion ($8.4 million). At end-March, SHB recorded pre-tax profit of VND307 billion ($13.5 million).

The bank had VND3.3 trillion ($145.16 million) in bad debts as at March 31, up VND405 billion ($17.8 million) year-on-year. Potentially irrecoverable debts rose 13.5 per cent year-on-year to VND2.03 trillion ($89.3 million). Its bad debt ratio rose to 1.92 per cent at end-March from 1.87 per cent at end-2016.

LienVietPostBank

As at the end of March, LienVietPostBank had total assets of VND138 trillion ($6.07 million), down 2.71 per cent against end-2016 due to its deposits at the central bank falling 81.9 per cent quarter-on-quarter to VND2.2 trillion ($96.8 million). Total deposits and lending at other credit institutions fell 61.1 per cent since end-2016 to VND3.5 trillion ($154 million) at end-March.

Customer loans rose sharply, to VND88.87 trillion ($3.9 billion), up 11.4 per cent quarter-on-quarter, while customer deposits rose only slightly, by 0.46 per cent since end-2016, to VND111.5 trillion ($4.9 billion).

As at March 31, the bank recorded nearly VND1.26 trillion ($55.4 million) in net interest income, up 70.3 per cent year-on-year. Profit from services rose 43.9 per cent year-on-year to VND9.5 billion ($418,000), while foreign currency trading was up 50 per cent year-on-year to VND72 billion ($3.16 million). Other services, meanwhile, saw a loss of VND145 billion ($6.38 million).

Operating expenses rose 36.7 per cent year-on-year to VND506 billion ($22.2 million), while risk provision expenses increased 132.7 per cent year-on-year to more than VND232 billion ($10.2 million). At end-March, the bank recorded pre-tax profit of VND469 billion ($20.63 million) and after-tax profit of VND350.7 billion ($15.4 million), up 77.6 per cent and 64 per cent year-on-year, respectively.

Techcombank

As at March 31, Techcombank’s total pre- and after-tax profits were VND1.32 trillion ($58.2 million), double the figure in the same period last year, and VND1.06 trillion ($46.6 million), respectively. Customer loans and deposits stood at VND137.74 trillion ($6.06 billion) and VND178.6 trillion ($7.85 billion), respectively.

It posted VND2.2 trillion ($96.8 million) in interest income, up 8.1 per cent year-on-year. Net profit from services fell 6.5 per cent year-on-year to VND522 billion ($23 million) while foreign currency trading saw a profit of VND88.8 billion ($3.9 million), up 18.4 per cent year-on-year.

Operating expenses during the period rose 7.7 per cent year-on-year while risk provision costs fell 25.9 per cent, helping to bring its pre-tax profit to VND1.32 trillion ($58.06 million), up 58 per cent year-on-year. After-tax profit was VND1.06 trillion ($46.6 million) during the quarter.

As at end-March, Techcombank had VND2.6 trillion ($114.37 million) in bad debts, up 15.8 per cent from end-2016. Potentially irrecoverable debts accounted for 57.9 per cent of the total, standing at VND1.5 trillion ($66 million). Doubtful debts were VND680 billion ($30 million), up 43.3 per cent quarter-on-quarter. Its bad debt ratio rose to 1.89 per cent from 1.58 per cent at end-2016.

Eximbank

The first quarter saw Eximbank record VND170 billion ($7.48 million) in pre-tax profit and VND136 billion ($5.98 million) in after-tax profit. As at end-March, customer loans had risen 0.52 per cent since end-2016 to VND86.43 trillion ($3.8 billion), while customer deposits were up 7.75 per cent quarter-on-quarter to VND110.3 trillion ($4.85 billion).

Profit from services stood at VND74 billion ($3.25 million), up 57 per cent year-on-year, while foreign currency trading rose 2.4-fold year-on-year to VND77 billion ($3.4 million). While operating costs were down sharply, by 19.8 per cent year-on-year, pre-provision operating profit only stood at VND303 billion ($13.3 million), down 17.5 per cent year-on-year.

The bank cut down its risk provision expenses in the quarter, which accounted for 91.8 per cent of the bank’s operating profit, to only 43.8 per cent during the first three months, making pre-tax profit surge 5.6-fold year-on-year to VND170 billion ($7.48 million) as at March 31.

According to its consolidated financial report for the first quarter, the bank had VND2.59 trillion ($113.9 million) in bad debts, up just 1.1 per cent compared to end-2016. Its bad debt ratio rose to the 3 per cent threshold against 2.95 per cent as at December 31.

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