Top 10 Vietnamese banks with the largest profits in the first half of 2022

DNHN - After the publication of semi-annual financial statements, the top 10 most profitable banks in Vietnam in the first half of 2022 are still familiar names. However, the ranking of banks in terms of pre-tax profit has been messed up compared to the same period in 2021.

Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) is firmly at the top of the list. Vietcombank recorded an impressive pre-tax profit of VND 17,300 billion in the first half of 2022. In particular, the bank's bad debt coverage ratio has been raised to more than 500%, a record level for both Vietcombank and the entire industry.

Vietnam Prosperity Joint Stock Commercial Bank VPBank has significantly narrowed the gap with Vietcombank, up 2 places compared to the previous year when it recorded a profit of 15,300 billion dongs, a strong increase of 70% compared to the same period in 2021, equivalent to completing 52% of the year plan. This strong growth comes from the sudden income from the exclusive cooperation in insurance distribution through the bank with AIA Life Insurance (Vietnam) Co., Ltd. while operating expenses continue to be optimized, and low-level controlled.

Down to third place is Vietnam Technological and Commercial Joint Stock Bank Techcombank, with a pre-tax profit of VND 14,100 billion, up 22.3% over the same period last year. According to the report, although Techcombank's total operating income in the first 6 months of 2022 increased by 16.6% year-on-year to VND21,100 billion, operating expenses increased by 24.3% over the same period last year, cost-to-income ratio (CIR) at 30.3%. The increase in operating costs, as explained by Techcombank, is to invest in 3 areas: digitization, data and talent according to the bank's strategic plan.

Another impressive appearance in the top 5 this year is Military Commercial Joint Stock Bank (MBBank) with a pre-tax profit of about 11,900 billion VND, up 49% over the same period. This result brings MBBank from 6th place to 4th place, which means that other big banks have to leave the top 5.

Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) reported a 6-month accumulated pre-tax profit of more than VND 11,600 billion, up 7% compared to the same period in 2021. Despite being the highest profit figure ever in the first half of the year of this bank, VietinBank was still surpassed by VPBank and MBBank, falling to 5th place.

One place down from the previous year and leaving the top 5 in this period is the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV). BIDV's consolidated pre-tax profit reached VND 11,084 billion, up 37.5% over the same period last year, reaching 53.8% of the year plan.

Still stable at 7th position in the top 10 most profitable banks in the first half of the year, Asia Commercial Joint Stock Bank (ACB) also grew impressively by 42% in profit over the same period, reaching 9,000 billion pre-tax profit.

The remaining positions belong to Saigon - Hanoi Commercial Joint Stock Bank (SHB) with 5,848 billion dongs of pre-tax profit, Ho Chi Minh City Development Commercial Joint Stock Bank (HDBank) with VND 5,304 billion and Vietnam International Commercial Joint Stock Bank (VIB) with VND 5,022 billion. Compared to the same period in 2021, SHB has surpassed HDBank and VIB to increase 2 places to the 8th position this year.

Thus, in the top 10 banks alone, the total profit before tax reached more than 106,000 billion dongs, up 35.7% over the same period. Notably, there are 6 banks with a profit of over 10,000 billion dongs after only 6 months, double the number recorded in the first half of 2021.

According to experts, the main factors that have helped banks maintain high growth in the past 6 months have come from the economy's good recovery after a long time being affected by the COVID-19 pandemic with strong credit growth right from the start. At the beginning of the year, along with the pressure of risk provisioning decreased, etc.

Most of the credit institutions participating in the recent survey of the State Bank expect that the business situation in the third quarter and the whole year of 2022 will improve positively with a higher level of improvement compared to the previous period.

PV