Thailand Kasikornbank’s Vietnam branch sees 2023 loss widen to $7.4 mln

The Ho Chi Minh City branch of Thailand’s Kasikornbank Public Company Limited (KBank) recorded a post-tax loss of $7.4 million in 2023, tripling from $2.5 million in 2022.

According to the bank’s financial statements for 2023, its net interest income quadrupled year-on-year to $15.9 million, from $3.4 million in 2022.

The HCMC branch also reported net fees and commission expenses of $705,392 in 2023, versus $3.7 million in 2022; and net loss of $209,910 from trading of foreign currencies, nearly triple year-on-year.

As of end-2023, Kasikornbank HCMC branch recorded cash on hand of $436,717; and balances with the State Bank of Vietnam of $9.1 million.

Its loans and advances to customers went up 248% year-on-year to $296.1 million, while its deposits from customers increased 258% to $107.4 million.

The lender’s total assets jumped 237% year-on-year to $770.5 million, while its liabilities grew 225% to $497.4 million, and its equity went up 261% to $274.2 million.

These results are in line with Kasikornbank's expansion plans in Vietnam. In August 2023, the second-largest bank in Thailand said it aimed to invest at least $1 billion in Vietnam by 2027. This move would see its workforce go from 350 in 2023 to 1,700 in 2027.

In May 2023, KBank said it had received the State Bank of Vietnam's approval to increase the capital of its Ho Chi Minh City branch more than 2.5 times to 9.6 billion baht ($285 million) from $80 million, becoming the second largest foreign bank branch in Vietnam by charter capital.

Among other foreign banks in Vietnam, South Korea’s Shinhan Bank Vietnam, earned net profits of VND4.52 trillion ($181.2 million) in 2023, up 22.1% year-on-year, with improvements in all major indicators.

HSBC Bank (Vietnam) Ltd., under London-headquartered lender HSBC, recorded post-tax profits of VND5,189.1 billion ($207.5 million) in 2023, up 40.2% year-on-year, according to the bank’s financial statements.

CIMB Bank Vietnam, under Malaysia-headquartered CIMB bank, reduced its 2023 post-tax loss by 60.6% year-on-year to VND85.9 billion ($3.44 million) .