Vietcombank leads profitability among state-controlled banks

By Trang Nguyen
Mon, July 31, 2023 | 12:05 pm GMT+7

Three of Vietnam's biggest lenders Vietcombank, Vietinbank and BIDV reported the same net interest income in the second quarter this year, but very different profits.

Vietcombank's after-tax profit was 41% higher than VietinBank's and 34% higher than BIDV, although its operating income was only 1-9% higher than both banks.

Vietcombank is one of the 'Big 4' banks in Vietnam. Photo courtery of the bank.

Vietcombank is one of the "Big 4" banks in Vietnam. Photo courtery of the bank.

Vietcombank achieved after-tax profit of VND7.43 trillion ($313.7 million) in Q2, up 25% year-on-year. The figures for Vietinbank and BIDV were VND5.26 trillion ($222.3 million) and VND5.56 trillion ($234.7 million), up 12% and 6%, respectively.

The net interest income of Vietcombank, VietinBank and BIDV reached VND14.02 trillion ($592.1 million), VND12.76 trillion ($538.9 million), and VND13.8 trillion ($582.8 million), respectively.

Another of the "Big 4", Agribank, has yet to announce its Q2 financial statement. Vietcombank, Vietinbank and BIDV are creditors with the state as majority shareholder, while Agribank is wholly state-owned.

Provisions proved to be the difference between the three banks. Vietcombank had to spend only VND2.5 trillion ($105.5 million) on risk provision, while VietinBank set aside up to VND6.48 trillion ($273.7 million) and BIDV VND4.19 trillion ($176.9 million).

Among the trio, VietinBank was the only one to increase its risk provision in Q2, up 10%. In contrast, provisions at Vietcombank and BIDV declined by 8% and 35%, respectively.

Vietcombank had the lowest bad debt, while BIDV had the highest.

As of June 30, 2023, Vietcombank's bad debt had stood at VND9.78 trillion ($413 million), up 25% compared to the beginning of the year and accounting for 0.83% of total outstanding loans.

BIDV's bad debt was over VND25.97 trillion ($1.09 billion), up 47% and making up 1.59% of total outstanding loans. The figures for VietinBank were VND17.3 trillion ($730.6 million), down 9.5% and 1.27%, respectively.

The Big 4 are currently leading in terms of total assets, capital base, and reputation. At the end of Q2, BIDV ranked first in terms of total assets with nearly VND2,125 trillion ($89.75 billion), up 1% compared to the beginning of the year.

Vietinbank ranked second with VND1,860 trillion ($78.55 billion) and Vietcombank third with VND1,704 trillion ($71.97 billion).

The main reason for the decrease in Vietcombank's asset size came from the narrowing of investment securities, deposits at the State Bank and deposits and loans to other credit institutions.

Comments (0)
  • Read More
Flexibility, adaptability key to effective leadership: PepsiCo Vietnam exec

Flexibility, adaptability key to effective leadership: PepsiCo Vietnam exec

In a rapidly changing world, leaders need to develop the skill of being “as flexible as seaweed,” says Nguyen Viet Ha, general director of PepsiCo Foods Vietnam.

Companies - Wed, November 20, 2024 | 3:52 pm GMT+7

Central Vietnam province okays $88 mln automobile part project

Central Vietnam province okays $88 mln automobile part project

Binh Thuan province's industrial zone authority on Tuesday granted an investment registration certificate to a $88 million project invested by Taiwan’s NeoSCM Limited.

Industries - Wed, November 20, 2024 | 3:44 pm GMT+7

Thai packaging firm Thantawan Industry makes inroad into Vietnam

Thai packaging firm Thantawan Industry makes inroad into Vietnam

Thantawan Industry Public Company Limited, a leading Thai manufacturer of premium plastic packaging, has inked a deal for a 30-year factory lease, marking its inaugural investment in Vietnam.

Industries - Wed, November 20, 2024 | 3:34 pm GMT+7

Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC

Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC

Major property developer Novoland has had legal obstacles for its Aqua City project cleared after Dong Nai Chairman Vo Tan Duc approved Tuesday a critical adjustment to the southern province’s urban development plan.

Companies - Wed, November 20, 2024 | 2:29 pm GMT+7

Pegatron to quadruple workforce at $800 mln project in Vietnam

Pegatron to quadruple workforce at $800 mln project in Vietnam

Pegatron Vietnam, a subsidiary of Taiwanese electronics manufacturer Pegatron Corporation, is set to soon quadruple the company's workforce for its $800-million project in Vietnam.

Industries - Wed, November 20, 2024 | 2:03 pm GMT+7

Thailand’s WHA greenlighted to invest $55 mln in central Vietnam industrial park

Thailand’s WHA greenlighted to invest $55 mln in central Vietnam industrial park

WHA Group, a leading Thai provider of fully integrated logistics and industrial facilities solutions, has secured in-principle approval from the Vietnamese government to invest in an industrial park in central Vietnam.

Industrial real estate - Wed, November 20, 2024 | 12:01 pm GMT+7

Indonesia, Brazil sign cooperation deals worth $2.65 bln

Indonesia, Brazil sign cooperation deals worth $2.65 bln

Indonesia and Brazil on Monday sealed cooperation agreements worth $2.65 billion in the areas of renewable energy, sustainable agriculture and technology at the Indonesia-Brazil Business Forum held in Rio De Janeiro, Brazil, on the sidelines of the G20 Summit.

Southeast Asia - Wed, November 20, 2024 | 11:57 am GMT+7

Nusantara not yet feasible as Indonesia’s capital city: authorities

Nusantara not yet feasible as Indonesia’s capital city: authorities

Indonesian Minister of Home Affairs Tito Karnavian said Jakarta still holds the capital status despite the enactment of State Capital Law No. 3 of 2022, adding that the capital city will officially be relocated after the president issues a presidential decree.

Southeast Asia - Wed, November 20, 2024 | 11:55 am GMT+7

Malaysia’s Halal industry to make up 10.8% of GDP by 2030

Malaysia’s Halal industry to make up 10.8% of GDP by 2030

Malaysia’s Halal industry is projected to account for 10.8% of the country's GDP by 2030, with an estimated value of RM231.1 billion ($51.7 billion).

Southeast Asia - Wed, November 20, 2024 | 11:48 am GMT+7

Thailand takes more fiscal measures to sustain growth momentum

Thailand takes more fiscal measures to sustain growth momentum

The Thai government is working on a raft of fresh fiscal measures to sustain an economic recovery, foster new foreign investment, and lower the near-record household debt, says Thai Prime Minister Paetongtarn Shinawatra's top aide.

Southeast Asia - Wed, November 20, 2024 | 11:46 am GMT+7

Indonesia named world's most generous country in 2024

Indonesia named world's most generous country in 2024

Indonesia has been the world's most generous country for the seventh consecutive year since 2017, reported local weekly magazine Tempo.

Southeast Asia - Wed, November 20, 2024 | 11:41 am GMT+7

Work begins on Mitsubishi Estate’s $55 mln logistics facility in northern Vietnam

Work begins on Mitsubishi Estate’s $55 mln logistics facility in northern Vietnam

Logistics facility brand Logicross, under Japan’s Mitsubishi Estate, kicked off the construction of its Logicross Hai Phong ready-built warehouse in Vietnam’s northern city of Hai Phong on Tuesday.

Industrial real estate - Wed, November 20, 2024 | 10:58 am GMT+7

French logistics giant eyes to launch electric barges on inland waterways in Vietnam

French logistics giant eyes to launch electric barges on inland waterways in Vietnam

CMA-CGM Group, a French shipping and logistics company, has plans to deploy electric barges, initially on inland waterways in Vietnam.

Companies - Wed, November 20, 2024 | 10:43 am GMT+7

2025 a turning point for Vietnam stock market: broker

2025 a turning point for Vietnam stock market: broker

Vietnam's stock market has struggled to capture the attention of both domestic and foreign investors in recent months, reflected by persistent foreign capital outflows and a steady decline in market liquidity, but next year will be a turning point for the market, says Chen Chia Ken, CEO of Phu Hung Securities JSC.

Finance - Wed, November 20, 2024 | 7:07 am GMT+7

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