Eximbank posts 3-fold profit hike in 2022

Eximbank, listed on the Ho Chi Minh Stock Exchange (HoSE) as EIB, reported an after-tax profit of VND2,504 billion ($106.78 million) in 2022, a three-time increase year-on-year.

The bank's net interest income reached VND5,592 billion ($238.47 million), up 59% year-on-year, while profit from service activities hit VND514 billion ($21.92 million), up 19%.

Profit from foreign exchange business increased by 54% to VND606 billion ($25.84 million), and the figure from other activities, mainly debt collection and settlement, rose by 68% to VND428 billion ($18.25 million).

Eximbank's total operating income was VND7,233 billion ($308.45 million), up 53.6% year-on-year. Operating expenses increased by 36% to VND3,420 billion ($145.84 million). Thus, the cost to income ratio (CIR) has improved significantly, down from 53% to 47%.

Notably, the bank's risk provision expense in 2022 was only VND103 billion ($4.39 million), down 90% over the same period last year.

By December 31, 2022, Eximbank's total assets reached VND185,045 billion ($7.89 billion), up 11.6% compared to the end of 2021.

Outstanding loans to customers increased by 14% to VND129,196 billion ($5.51 billion), and customer deposits increased by 8.2 % to VND148,614 billion ($6.34 billion).

Eximbank's bad debt was VND2,346 billion ($100 million), up 4.4% year-on-year, an increase much lower than the credit growth rate. The bad debt ratio improved, decreasing from 1.96% to 1.8%.

Previously, Eximbank's extraordinary general meeting of shareholders for 2023 on Monday to elect additional board members for the 2020-2025 term could not proceed as planned due to insufficient attendance.

On January 14, foreign investors sold 134 million Eximbank (EIB) shares, equivalent to 10.8% of the bank's charter capital, for VND3,421 billion ($146 million). The transactions were made between Japan's Sumitomo Mitsui Banking Corporation (SMBC), the bank's major shareholder, and domestic investors. Most of the shares were traded for VND25,500 ($1.09) per unit.

On March 18, 2022, the Japanese financial institution officially announced in writing the termination of its strategic alliance agreement with Eximbank. In September, representative of SMBC in Eximbank, Vo Quang Hien, left as a member of its board of directors.

In early December, Eximbank forecast pre-tax profits of VND3.5 trillion ($146 million) for 2022, and set a pre-tax profit target of VND5 trillion ($208 million) for 2023, up 42.9% year-on-year.

On the HoSE, Eximbank closed Thursday’s session at VND27,100 ($1.15).