Big 4 Banks Secure Profits Reaching and Exceeding the Billion-Dollar Mark

DNHN - The biggest banks have all reported earnings that reach or exceed $1 billion for the first time in history.

Vietcombank Surpasses 40,000 Billion VND

At a recent year-end conference, Vietcombank’s General Director announced that the bank’s pre-tax profit in 2023 increased by 10.2% compared to 2022, fulfilling the assigned plan.

Vietcombank’s management did not disclose specific figures, but the bank recorded a consolidated pre-tax profit of 37,368 billion VND and a separate profit of over 36,702 billion VND in 2022.

Based on these figures, Vietcombank’s consolidated pre-tax profit in 2023 is estimated to be around 41,200 billion VND, and its separate profit is expected to exceed 40,400 billion VND.

With this result, Vietcombank has set a new record for profit in the banking industry, leaving behind other banks in the Big 4 group, such as BIDV, VietinBank, and Agribank.

At the end of 2023, Vietcombank’s Tier 1 capital mobilisation reached approximately 1.41 million billion VND, an increase of 12.1% compared to 2022. Outstanding credit balance reached 1.27 million billion VND, up 10.6% compared to the end of 2022.

Asset quality was controlled according to the target, with the ratio of Group 2 debts being close to 0.42%, and the ratio of bad debts at 0.97%. The risk provision fund according to Circular 11 was 34,338 billion VND, and the bad debt coverage ratio under Circular 11 reached 185%.

BIDV’s Substantial Profit

According to information from BIDV, as of December 31, 2023, total assets reached 2.26 million billion VND, maintaining its position as the joint-stock commercial bank with the largest total assets in Vietnam. BIDV’s capital mobilisation in 2023 reached 1.89 million billion VND, a growth of 16.5%.

The outstanding credit balance reached 1.75 million billion VND, a growth of 16.66%, and the non-performing loan ratio according to Circular 11 was controlled at 1.1%.

BIDV’s consolidated pre-tax profit in 2023 reached over 27,400 billion VND. Thus, the bank’s profit in 2023 increased by 19% compared to 2022, reaching a record high.

Vietinbank’s Profit Reaches 22,500 Billion VND

Vietinbank also announced that, according to its 2023 business plan, it aimed for a separate pre-tax profit of 22,500 billion VND.

By the end of 2023, VietinBank’s total outstanding credit balance reached over 1.5 million billion VND, an increase of 15% compared to the end of 2022. The bank’s credit growth was positive from the beginning of the year and maintained sustainable growth.

Credit quality improved, with the non-performing loan ratio at only 1.15%, among the banks with the lowest non-performing loan ratios. The loan coverage ratio reached 160%, remaining at a high level. VietinBank’s capital mobilisation increased by 13.7%, of which the current account savings account (CASA) grew by 27%.

Agribank’s Profit Increased by 15%

Agribank recently disclosed some of its business indicators for 2023. Specifically, the bank estimated its full-year pre-tax profit to reach approximately 25,300 - 25,400 billion VND, an increase of 14.5 - 15% compared to the previous year.

Agribank also revealed that its total assets exceeded the 2 million billion VND mark, and its capital reached over 1.88 million billion VND. The total outstanding loans to the economy reached over 1.55 million billion VND, of which 65% were loans serving the development of “Tam Nong - Agriculture, Rural Areas and Farmers”. The safety ratios of operations ensured compliance with regulations.

Previously, in its general target and business plan report for 2023, Agribank set a pre-tax profit target of 26,200 billion VND. In the first half of 2023, Agribank had already achieved more than 50% of its plan. Specifically, according to its 2023 semi-annual financial report, Agribank achieved a pre-tax profit of 13,497 billion VND.

P.V