'Big 4' banks report nearly $1 bln profit in 2022

By Trang Nguyen
Sun, January 15, 2023 | 2:09 pm GMT+7

Three of the biggest Vietnamese lenders BIDV, VietinBank, and Agribank reported a profit of nearly $1 billion in 2022, while Vietcombank earned over $1 billion.

Vietcombank's unconsolidated pre-tax profit was VND36,774 billion ($1.56 billion) in 2022, exceeding its target by 19% and up 39% year-on-year.

Its non-interest income was up 9.2% compared to 2021, exceeding its target by 8.7%, according to a report released at the bank's year review meeting. Net income from foreign currency trading grew 31.7%, exceeding its plan by 24%.

Credit growth exceeded VND1,150 trillion ($49.04 billion) in the year, up 19% compared to the end of 2021. Of this, wholesale credit was up 18.5%, and retail credit growth, 19.4% year-on-year. The bank's bad debt ratio remained at 0.67%.

Staff counts Vietnamese dong at a local bank. Photo by The Investor/Trong Hieu.

Staff counts Vietnamese dong at a local bank. Photo by The Investor/Trong Hieu.

BIDV reported a consolidated pre-tax profit of VND23,190 billion ($989 million) in 2022, up 70% year-on-year and exceeding its plan by 13%.

At the end of 2022, BIDV's total assets reached more than VND2,080 trillion ($88.74 billion), up nearly 21% compared to the beginning of the year, maintaining its position as joint stock commercial bank with the largest total assets in Vietnam.

The bank's total mobilized capital reached VND1,950 billion ($83.15 billion), up 21.1% compared to the beginning of the year. Of this, mobilization of capital from organizations and individuals reached VND1,620 trillion ($69.08 billion), up 8.8% and accounting for nearly 13.6% of the banking industry's deposit market share. Its bad debt ratio was 0.9%.

Another "Big 4", VietinBank's unconsolidated pre-tax profit was VND20,500 billion ($874 million) last year, meeting its target, while the bad debt ratio was less than 1.2%.

The bank's operating cost to operating income ratio (CIR) was below 30%, among the lowest in the country's banking industry. In 2022, the lender controlled operating expenses by devoting resources to direct business activities, practicing thrift and fighting waste.

VietinBank is the country's second largest creditor by assets after BIDV. Like BIDV and Vietcombank, it has the state as majority shareholder.

For Agribank, according to deputy general director Nguyen Thi Phuong, the wholly state-owned bank exceeded its profit target of VND20,000 billion ($853.2 million) assigned by the Ministry of Finance and the State Bank in 2022. Its profit increased by about 40% year-on-year.

At an early year conference, Pham Duc An, chairman of Agribank said that the bank no longer ensures the minimum capital adequacy ratio for credit growth, due to the barrier of charter capital scale. Credit growth of the bank in 2022 was also low compared to the level of the whole system.

Therefore, An proposed the government advance an amount of VND6,753 billion ($288.08 million) for its chartered capital expansion. "This is very urgent to ensure the minimum capital adequacy ratio for credit growth right from the beginning of 2023," he said.

Can Van Luc, chief economist at BIDV, said that the financial statements of 27 listed banks show that banking profits grew well in the first nine months of 2022, with total pre-tax profit reaching VND192.5 trillion ($8.21 billion), up 39% year-on-year. Of these, seven banks achieved a profit of over VND10 trillion ($426.59 million), and some had a growth rate of more than 50% year-on-year.

By September 30, 2022, the 27 banks accounted for 70% of the credit institution system's total assets, 71% of outstanding loans, and 68% of customer deposits.

However, it should be noted that, despite the good growth rate, many banks' profit growth partly depends on reducing credit risk provisions.

Notably, representatives of some banks said their profits in the fourth quarter of 2022 were flat due to limited credit room, surging deposit interest rates and the pressure of provisioning in the last quarter.

Comments (0)
  • Read More
Construction trio keen on building $1.5 bln expanded expressway in southern Vietnam

Construction trio keen on building $1.5 bln expanded expressway in southern Vietnam

Three construction majors in Vietnam are interested in building an expanded expressway connecting Ho Chi Minh City with the Mekong Delta provinces of Long An and Tien Giang for an estimated VND38.6 trillion ($1.52 billion).

Infrastructure - Tue, November 19, 2024 | 8:18 pm GMT+7

Singapore, Germany upgrade relations to strategic partnership

Singapore, Germany upgrade relations to strategic partnership

Singapore and Germany have decided to elevate their ties to a Strategic Partnership to promote closer cooperation in areas of mutual interest such as security, artificial intelligence (AI) and clean energy.

Southeast Asia - Tue, November 19, 2024 | 8:01 pm GMT+7

Thailand’s rice shipment up 20% in 10 months

Thailand’s rice shipment up 20% in 10 months

Thailand exported 8.37 million tons of rice in January-October, a year-on-year increase of 20%, according to the Ministry of Commerce.

Southeast Asia - Tue, November 19, 2024 | 8:00 pm GMT+7

Vietnam’s inconsistent legal framework poses problems for FDI sector: Deep C exec

Vietnam’s inconsistent legal framework poses problems for FDI sector: Deep C exec

Vietnam’s legal framework lacks consistency and the foreign direct investment (FDI) sector will soon face challenges related to the Law on Environmental Protection, says Bruno Jaspaert, CEO of Deep C Industrial Zones.

Economy - Tue, November 19, 2024 | 6:30 pm GMT+7

Vietnam shares sink on extended foreign selloffs

Vietnam shares sink on extended foreign selloffs

Vietnamese equities fell for a fourth consecutive day on Tuesday as foreign traders extended their selling spree.

Finance - Tue, November 19, 2024 | 5:10 pm GMT+7

Germany’s household product firm QuickPack to invest $32 mln in Vietnam

Germany’s household product firm QuickPack to invest $32 mln in Vietnam

Germany’s QuickPack, a specialist for household goods and hygiene products, will invest €30 million ($31.8 million) in Vietnam’s Mekong Delta province of Long An.

Industries - Tue, November 19, 2024 | 4:24 pm GMT+7

Malaysian millionaire willing to invest in convicted Vietnamese tycoon’s property project: lawyers

Malaysian millionaire willing to invest in convicted Vietnamese tycoon’s property project: lawyers

Malaysian millionaire Vincent Tan has evinced investment interest in a residential project owned by convicted tycoon Truong My Lan, chairwoman of Van Thinh Phat Group, lawyers for the latter have disclosed.

Real Estate - Tue, November 19, 2024 | 4:17 pm GMT+7

‘Bottleneck of bottlenecks’ continues to dog Vietnam's property, infrastructure projects

‘Bottleneck of bottlenecks’ continues to dog Vietnam's property, infrastructure projects

Limited consultations between state agencies and the parliament’s primary focus on wording are issues with Vietnam’s legal framework adversely affecting property and infrastructure projects, say experts and corporate leaders.

Economy - Tue, November 19, 2024 | 3:40 pm GMT+7

President Xi Jinping hastens construction of 3 Vietnam-China rail routes

President Xi Jinping hastens construction of 3 Vietnam-China rail routes

Chinese President Xi Jinping has called for more substantial cooperation between China and Vietnam, including the pacier implementation of three railway routes linking the two nations.

Infrastructure - Tue, November 19, 2024 | 3:08 pm GMT+7

Vietnam developers offer deferred principal payments, interest support to boost year-end sales

Vietnam developers offer deferred principal payments, interest support to boost year-end sales

Vietnamese housing developers are offering several incentives including deferred principal payments and interest support to stimulate demand and boost liquidity as the year nears its end.

Real Estate - Tue, November 19, 2024 | 2:29 pm GMT+7

Australia's EQ Resources acquires TMG Group with Vietnam-based ferrotungsten factory

Australia's EQ Resources acquires TMG Group with Vietnam-based ferrotungsten factory

Australia-based EQ Resources Limited has acquired its fellow firm Tungsten Metals Group (TMG), which owns and operates the largest ferrotungsten (FeW) factory outside China.

Companies - Tue, November 19, 2024 | 11:00 am GMT+7

Techcom Securities becomes largest broker in Vietnam by capital base

Techcom Securities becomes largest broker in Vietnam by capital base

Techcom Securities JSC (TCBS) has become the largest securities company in Vietnam by charter capital after finishing a rights offering last week.

Finance - Tue, November 19, 2024 | 9:11 am GMT+7

Vietnam airport operator ACV looks to better exploit non-aviation service potential: exec

Vietnam airport operator ACV looks to better exploit non-aviation service potential: exec

Vietnam's airports operator ACV expects to earn $145 million from non-aviation services this year, accounting for around 18.83% of its total revenue, which is modest compared to other countries, said deputy general director Nguyen Duc Hung.

Companies - Tue, November 19, 2024 | 7:45 am GMT+7

The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment

The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment

A seminar themed “Removing legal bottlenecks for infrastructure and property investment” will be organized by The Investor in Hanoi on Tuesday.

Companies - Tue, November 19, 2024 | 7:00 am GMT+7

Indonesia promises Asia-Pacific investors more incentives

Indonesia promises Asia-Pacific investors more incentives

Indonesian President Prabowo Subianto recently told the press that he will create more incentives and expand special economic zones (SEZs) so as to lure investors from Asia-Pacific.

Southeast Asia - Mon, November 18, 2024 | 11:01 pm GMT+7

Indonesia, Brazil enhance aviation cooperation

Indonesia, Brazil enhance aviation cooperation

Indonesia's state-owned aircraft manufacturer, Dirgantara Indonesia (DI), and Brazilian aerospace company Embraer have signed a memorandum of understanding (MoU) to expand collaboration in the commercial aviation sector.

Southeast Asia - Mon, November 18, 2024 | 11:00 pm GMT+7