Mixed performance by Vietnam commercial banks in Q3

By My Ha, Minh Hue
Mon, November 4, 2024 | 4:52 pm GMT+7

Vietnamese commercial banks have had a mixed third quarter, with some reporting substantial profit gains while others seeing steep declines or even losses.

Vietcombank headquarters in Hanoi. Photo courtesy of the bank.

Vietcombank headquarters in Hanoi. Photo courtesy of the bank.

According to statistics compiled by The Investor, 26 listed banks in the country earned profits of VND56.06 trillion ($2.22 billion) in Q3, up 17% from a low base in the same period last year.

In terms of absolute value, six banks – Vietcombank, Techcombank, VietinBank, VPBank, HDBank and LPBank – saw profit increase by over VND1 trillion ($39.53 million) compared to the same quarter last year.

State-controlled Vietcombank maintained its position as the sector leader, reporting after-tax profits of VND8.57 trillion ($338.74 million), up nearly 19% year-on-year, with all segments except foreign exchange trading showing growth.

LPBank delivered the most impressive performance with Q3 net profits of VND2.33 trillion ($92.1 million), 2.3 times higher than the same period last year. The surge was driven by a significant increase in service income, which skyrocketed from VND164 billion to VND1.02 trillion.

VPBank also showed remarkable growth, with profit soaring 71.5% year-on-year to VND4.16 trillion ($164.43 million), the highest in two years. HDBank and VietinBank reported profit increases of 41% and 33%, respectively.

Private lender Vietbank saw the most striking profit growth, with VND327 billion ($12.93 million), representing an 8.4-fold increase from the same period last year.

The bank has expanded its network to 124 branches, which is set to increase further to 132 by the end of this year. As a result, its net interest margin (NIM) more than doubled to VND2.11 trillion ($83.4 million) in the first nine months of this year, including VND852 billion in Q3.

NamABank also expanded its reach, with nearly 250 transaction points as of early October, resulting in a 53% increase in NIM to VND2 trillion ($79 million) and a 109% jump in after-tax profit to VND870 billion in Q3.

Not all banks fared well in the third quarter.

Orient Commercial Bank (OCB) reported Q3 profits of VND347 billion ($13.72 million), down 68% year-on-year.

Several other banks including Maritime Bank, Vietnam International Bank (VIB), Saigon-Hanoi Bank (SHB) and KienlongBank experienced double-digit profit drops.

ABBank was the only bank to report a loss in Q3/2024 of VND285 billion ($11.26 million), compared to a profit of VND24 billion in the same period last year.

ABBank’s service revenue plummeted from VND189 billion to VND82 billion; and it suffered unspecified losses in foreign exchange trading and securities investment. The lender’s operating costs remained stable, but credit risk provisioning doubled to VND526 billion.

Its lackluster Q3 performance left ABBank with a pre-tax profit of VND239 billion ($9.45 million) for the first nine months, down 66% year-on-year, achieving only 24% of the year's target; while its after-tax profit dropped 68% to VND181 billion.

The bank attributed its lower-than-expected profits to increased bad debt provisioning and falling market demand due to the impacts of natural disasters.

Comments (0)
  • Read More
Two investors propose $65 mln wind power project in central Vietnam

Two investors propose $65 mln wind power project in central Vietnam

A consortium of Quang Tri Renewable Energy Investment JSC and Win Power Holding Pte Ltd, and Nam Binh Wind Power JSC have submitted an application to implement a 48-megawatt wind power plant in the central province of Quang Tri.

Energy - Sat, May 31, 2025 | 3:10 pm GMT+7

Central Vietnam city seeks investors for $209 mln LNG, LPG terminal project

Central Vietnam city seeks investors for $209 mln LNG, LPG terminal project

The central city of Danang is calling for investment in an LNG and LPG terminal project worth over VND5.43 trillion ($208.7 million).

Infrastructure - Sat, May 31, 2025 | 10:52 am GMT+7

Thai-backed food giant C.P. Vietnam rejects pork safety accusations 

Thai-backed food giant C.P. Vietnam rejects pork safety accusations 

C.P. Vietnam, a subsidiary of Thailand’s food giant Charoen Pokphand Foods Public Company Limited (CPF), has dismissed social media allegations of selling diseased pork, calling them fabricated and false.

Companies - Sat, May 31, 2025 | 8:54 am GMT+7

Oman Investment Authority to expand investment fund in Vietnam

Oman Investment Authority to expand investment fund in Vietnam

Prime Minister Pham Minh Chinh has proposed Oman to enlarge the Vietnam-Oman Investment Fund (VOI) to $1 billion to better cater for the Southeast Asian country's investment needs.

Economy - Fri, May 30, 2025 | 11:26 pm GMT+7

Japanese retailer Aeon to build 2-hectare mall in Vietnam’s Mekong Delta

Japanese retailer Aeon to build 2-hectare mall in Vietnam’s Mekong Delta

Retail giant Aeon will develop a 2-hectare mall in the Mekong Delta province of Tien Giang, with an estimated investment of VND1.16 trillion ($44.6 million).

Industries - Fri, May 30, 2025 | 4:44 pm GMT+7

76% of Vietnamese survey respondents say trade uncertainty encourages them to explore new opportunities: HSBC

76% of Vietnamese survey respondents say trade uncertainty encourages them to explore new opportunities: HSBC

Vietnamese businesses have experienced exponentially higher cost increases than the global average and are expecting additional short-term costs due to trade uncertainty. But many survey respondents (76%) think trade uncertainty has encouraged their business to evolve and explore new opportunities, write HSBC analysts.

Consulting - Fri, May 30, 2025 | 2:41 pm GMT+7

Vietnamese firm lands first $1 mln order on Alibaba after 8-year struggle to export

Vietnamese firm lands first $1 mln order on Alibaba after 8-year struggle to export

After five months of operating a virtual storefront on Alibaba’s B2B e-commerce platform, Sukavina Co., Ltd., a Binh Duong province-based manufacturer of metal tables, chairs, and beds, secured its first international order, marking a significant milestone in the company’s eight-year journey to global markets.

Companies - Fri, May 30, 2025 | 2:37 pm GMT+7

AgriS partners with IFC: Optimizing environmental and social management system, accelerating net zero 2035 goal

AgriS partners with IFC: Optimizing environmental and social management system, accelerating net zero 2035 goal

TTC AgriS (Thanh Thanh Cong-Bien Hoa JSC or AgriS) and International Finance Corporation (IFC) - a member of the World Bank Group - has signed an MoU to strengthen sustainable development governance in alignment with global standards.

Companies - Fri, May 30, 2025 | 2:30 pm GMT+7

Vietnam's stock market attractively priced: Finnish fund PYN Elite

Vietnam's stock market attractively priced: Finnish fund PYN Elite

Vietnam’s stock market is attractively priced, with a price-to-sales (P/S) ratio of 1.3, said Petri Deryng, portfolio manager at Finnish investment fund PYN Elite.

Finance - Fri, May 30, 2025 | 2:09 pm GMT+7

S Korea's SK Group eyes 3 LNG power projects in Vietnam: chairman

S Korea's SK Group eyes 3 LNG power projects in Vietnam: chairman

SK Group, South Korea’s second-largest chaebol, is exploring several LNG-fueled power projects in Vietnam, including three proposed to be included in the country's green growth project portfolio, said chairman Tae-Won Chey.

Energy - Fri, May 30, 2025 | 1:37 pm GMT+7

Vietnam's Hoa Phat Group to become Southeast Asia’s first producer of steel rails for high-speed railways

Vietnam's Hoa Phat Group to become Southeast Asia’s first producer of steel rails for high-speed railways

Hoa Phat Group, a top steelmaker in Vietnam, on Thursday signed an agreement with Germany’s SMS Group under which the latter will provide the former technology and production lines for manufacturing steel rails and shaped steel, with an annual capacity of 700,000 tons.

Companies - Fri, May 30, 2025 | 11:48 am GMT+7

Vietnam's telco giant Viettel signs deal with France’s John Cockerill Defense

Vietnam's telco giant Viettel signs deal with France’s John Cockerill Defense

Viettel High Tech, the core military and civilian R&D arm of Vietnam’s military-run telecom giant Viettel, has signed a cooperation agreement with John Cockerill Defense, a leading weapon designer and manufacturer in France.

Companies - Thu, May 29, 2025 | 9:14 pm GMT+7

MB showcases comprehensive financial solution Biz MBBank at Digital Transformation Day event

MB showcases comprehensive financial solution Biz MBBank at Digital Transformation Day event

Vietnam's leading bank MB on Thursday introduced its latest digital technology solutions, notably the Biz MBBank digital financial platform, at the "Smart Digital Ecosystem in the New Era" event organized by the central bank.

Companies - Thu, May 29, 2025 | 8:02 pm GMT+7

Vietnam's auto distributor TMT to launch $3.8 mln charging station firm

Vietnam's auto distributor TMT to launch $3.8 mln charging station firm

Vietnamese auto distributor TMT Motors has announced the establishment of a charging station company with a charter capital of VND100 billion ($3.84 million).

Companies - Thu, May 29, 2025 | 4:45 pm GMT+7

US's Excelerate Energy affirms intention to turn Vietnam into LNG hub for ASEAN

US's Excelerate Energy affirms intention to turn Vietnam into LNG hub for ASEAN

Excelerate Energy wants to make Vietnam a center for LNG distribution to the ASEAN region, president and CEO Steven Kobos told Prime Minister Pham Minh Chinh at a meeting in Hanoi on Thursday.

Energy - Thu, May 29, 2025 | 4:33 pm GMT+7

Bourse shifts to heat up Vietnam's banking stocks

Bourse shifts to heat up Vietnam's banking stocks

Several Vietnamese banks are planning to move their shares from the Unlisted Public Companies Market (UPCoM) to the Ho Chi Minh Stock Exchange (HoSE) this year, creating new momentum for banking stocks, long dubbed the “king” group.

Finance - Thu, May 29, 2025 | 2:48 pm GMT+7