Two of Vietnam’s ‘Big 4’ banks report double-digit profit growth

By Minh Hue
Tue, November 7, 2023 | 8:27 am GMT+7

BIDV and VietinBank, both state-controlled banks in Vietnam, recorded respective pre-tax profit growth of 12% and 10% year-on-year in the first nine months of this year.

In the period, interest income of BIDV, listed on the Ho Chi Minh Stock Exchange (HoSE) as BID, reached VND115.27 trillion ($4.73 billion), a year-on-year increase of 32%. But due to a sharp year-on-year rise of 62.7% in interest expenses, the bank's net interest income decreased slightly by 1% to VND41.27 trillion ($1.7 billion).

Profit from services expanded 17% to VND4.96 trillion ($203.5 million), while that from foreign exchange trading rose 56% to VND3.14 trillion ($128.9 million). Securities trading activities also shifted from a loss in the same period last year to a profit of nearly VND294 billion ($12.07 million).

BIDV's Saigon Center Branch in Ho Chi Minh City, southern Vietnam. Photo courtesy of the bank.

BIDV's Saigon Center Branch in Ho Chi Minh City, southern Vietnam. Photo courtesy of the bank.

In the nine months, BIDV's operating costs surged 33% to VND1.38 trillion ($56.7 million). As a result, net profit from business activities decreased by 5% to VND35.17 trillion ($1.44 billion).

Thanks to a 20% reduction in risk provision costs to VND15.41 trillion ($632.9 million), the lender’s pre-tax profit climbed 12% to VND19.76 trillion ($811.79 million).

Its total assets as of September 30 increased slightly by 1% compared to the beginning of the year to VND2,132 trillion ($87.49 billion). Of this, cash decreased 22% to VND10.73 trillion ($438 million) and deposits with the State Bank of Vietnam (SBV) plunged 62% to VND42.65 trillion ($1.74 billion). Its total outstanding loans increased 9% to VND1,650 trillion ($67.35 billion).

Customer deposits expanded 7% compared to the beginning of the year to more than VND1,580 trillion ($64.9 billion). Government and SBV debts decreased sharply by 91% to VND13.24 trillion ($543.89 million).

BIDV's total bad debt as of September 30 was VND26.39 trillion ($1.08 billion), an increase of 50% from the beginning of the year, with doubtful debt 3.4 times higher. The ratio of bad debt to outstanding loans rose from 1.16% at the year’s outset to 1.6%.

All-round growth

Meanwhile, VietinBank, listed on the HoSE as CTG, recorded year-on-year growth in all business segments with a net interest income of VND38.51 trillion ($1.58 billion) in the nine-month period.

Profit from non-interest incomes grew sharply by 39% for services and 43% for foreign exchange trading. However, profits from other activities continued to fall 20% compared to the same period last year.

Customers make transactions at a VietinBank office. Photo courtesy of the bank.

Customers make transactions at a VietinBank office. Photo courtesy of the bank.

The bank's nine-month operating costs and credit risk provisions increased by 9% and 10.7% to VND14.14 trillion ($580.77 million) and VND20.64 trillion ($847.9 million), respectively, resulting in a pre-tax profit of over VND17.4 trillion ($714.77 million), up 10% year-on-year and reaching 75% of the annual plan.

At the end of the third quarter, VietinBank’s total assets increased by 4% from the beginning of the year to nearly VND1,890 trillion ($77.6 billion). Of this, cash decreased 14% to VND9.47 trillion ($388.9 million) and customer loans increased 9% to nearly VND1,390 trillion ($57.1 billion).

Customer deposits expanded 5% to VND1,310 trillion ($53.8 billion). Government and SBV deposits dropped 80% to VND21.58 trillion ($886.3 million), and those from other credit institutions surged 76% to VND247.17 trillion ($10.15 billion).

Total bad debt as of September 30 was VND18.94 trillion ($778 million), an increase of 20% from the beginning of the year. The ratio of bad debt to outstanding loans rose from 1.24% to 1.37%, with doubtful debt three times higher.

On the stock market, BID and CTG closed the Monday session at VN41,800 ($1.72) and VND28,550 ($1.17) per share, respectively.

Comments (0)
  • Read More
Vietnam’s army-backed construction firm proposes 14 offshore wind power projects

Vietnam’s army-backed construction firm proposes 14 offshore wind power projects

Lung Lo Construction Corporation (LLC), under the Ministry of National Defense, has submitted investment proposals for 14 offshore wind power projects with a combined capacity of 9,000 MW.

Energy - Thu, August 7, 2025 | 5:07 pm GMT+7

Vietnam's agri major Hoang Anh Gia Lai fined for bond information disclosure failure

Vietnam's agri major Hoang Anh Gia Lai fined for bond information disclosure failure

Vietnam's agri major Hoang Anh Gia Lai JSC has been fined VND92.5 million ($3,528) for failing to disclose bond-related information as required by law.

Companies - Thu, August 7, 2025 | 4:31 pm GMT+7

Northern Vietnam province accelerates $2.2 bln LNG-to-power project

Northern Vietnam province accelerates $2.2 bln LNG-to-power project

Quang Ninh province will hand over 4.9 hectares of reclaimed land to the Quang Ninh LNG-fuelled power plant project before August 11, local authorities stated at a meeting on Wednesday.

Energy - Thu, August 7, 2025 | 4:17 pm GMT+7

Vietnam's seafood firms ride profit wave ahead of US tariff hike

Vietnam's seafood firms ride profit wave ahead of US tariff hike

Vietnam’s seafood companies reported surging profits in Q2/2025, driven by importers ramping up purchases ahead of new U.S. reciprocal tariffs.

Economy - Thu, August 7, 2025 | 2:21 pm GMT+7

Le Anh Tuan appointed new CEO of Dragon Capital Vietfund Management JSC

Le Anh Tuan appointed new CEO of Dragon Capital Vietfund Management JSC

Dragon Capital Group, Vietnam's largest asset manager, has appointed Le Anh Tuan as CEO of its arm Dragon Capital Vietfund Management Joint Stock Company (DCVFM), starting from October 1, 2025.

Companies - Thu, August 7, 2025 | 2:01 pm GMT+7

Indonesia, Malaysia, Thailand expand local currency transaction network

Indonesia, Malaysia, Thailand expand local currency transaction network

Bank Indonesia, Bank Negara Malaysia, and Bank of Thailand have added new Appointed Cross Currency Dealer (ACCD) participating banks to broaden services for bilateral transactions in local currencies across the three nations, Bank Indonesia said in a statement on Tuesday.

Southeast Asia - Thu, August 7, 2025 | 12:48 pm GMT+7

ASEAN to sign MoU on regional power grid implementation

ASEAN to sign MoU on regional power grid implementation

ASEAN member states are set to sign an MoU on the implementation of the ASEAN Power Grid during the bloc’s Energy Ministers’ Meeting this October.

Southeast Asia - Thu, August 7, 2025 | 12:43 pm GMT+7

Vietnam overtakes Thailand to become world's second-largest rice exporter

Vietnam overtakes Thailand to become world's second-largest rice exporter

Vietnam has outranked Thailand as the world’s second-largest rice exporter in the first half of 2025, Thai PBS reported on August 3, citing the Thai Rice Exporters Association.

Companies - Thu, August 7, 2025 | 12:41 pm GMT+7

Vietnam posts trade surplus of $10.18 bln in 7 months

Vietnam posts trade surplus of $10.18 bln in 7 months

Vietnam’s export earnings grew by 14.8% to $262.44 billion in the first seven months of this year, while its import turnover rose by 17.9% to $252.26 billion, resulting in a trade surplus of $10.18 billion.

Economy - Thu, August 7, 2025 | 12:19 pm GMT+7

Malaysia pledges big purchases, investments with US

Malaysia pledges big purchases, investments with US

Malaysia has agreed to buy and invest over $240 billion (MYR1.02 trillion) in the U.S. to help reduce the trade gap between the two countries.

Southeast Asia - Thu, August 7, 2025 | 12:08 pm GMT+7

Vietnam's leading property developer Novaland to issue 152 mln shares to settle $229 mln debt

Vietnam's leading property developer Novaland to issue 152 mln shares to settle $229 mln debt

Novaland, a major real estate developer in Vietnam, plans to issue nearly 152 million new shares to swap more than VND6 trillion ($228.8 million) worth of bond principal.

Companies - Thu, August 7, 2025 | 10:11 am GMT+7

Vietnam's FDI capital disbursement hits five-year record high despite US tariff turmoil

Vietnam's FDI capital disbursement hits five-year record high despite US tariff turmoil

Disbursed foreign direct investment (FDI) capital in Vietnam reached $13.6 billion in Jan-July, up 8.4% year-on-year, despite U.S. tariff concerns.

Economy - Thu, August 7, 2025 | 9:57 am GMT+7

Malaysia steps up efforts to explore nuclear energy potential

Malaysia steps up efforts to explore nuclear energy potential

Malaysia’s Minister of Science, Technology and Innovation Chang Lih Kang on Wednesday reaffirmed his ministry’s commitment to enhancing cooperation with the Ministry of Energy Transition and Water Transformation (PETRA) in exploring the potential of nuclear energy.

Southeast Asia - Thu, August 7, 2025 | 8:10 am GMT+7

Indonesia's economy grows faster than expected

Indonesia's economy grows faster than expected

Indonesia's economy expanded by 5.12% year-on-year in Q2/2025, up from 4.87% in the previous quarter, exceeding the forecasts of many economic organizations, which had previously projected a rate of less than 5%, according to Statistics Indonesia (BPS).

Southeast Asia - Thu, August 7, 2025 | 8:07 am GMT+7

Philippine energy group eyes investment in Vietnam’s power sector

Philippine energy group eyes investment in Vietnam’s power sector

AboitizPower wants to invest in Vietnam’s electricity industry, especially in transmission infrastructure, said Danel Aboitiz, executive director of the corporation.

Energy - Wed, August 6, 2025 | 11:11 pm GMT+7

Vietnam seeks 8.3-8.5% economic expansion for 2025

Vietnam seeks 8.3-8.5% economic expansion for 2025

The Government has requested the State Bank of Vietnam to proactively adjust the credit growth aim for this year in line with a GDP expansion target of 8.3-8.5%.

Economy - Wed, August 6, 2025 | 10:41 pm GMT+7