Third quarter banking business results: 16/28 banks saw a decline in profits

ANTD.VN - 16/28 banks saw their profits decline in the quarter compared to the same period last year, of which NCB recorded a loss. The main reason was a decrease in net profit and an increase in risk provisioning costs.

Vietcombank still stands firmly at the top of profits

Up to this point, all 28 listed banks have announced their financial reports for the third quarter of 2023.

Of which, Vietcombank is still the bank recording the highest profit in the whole system with 9,051 billion VND in pre-tax profit in the third quarter, up 20% over the same period. Accumulated in the first 9 months of the year, Vietcombank achieved 29,550 billion VND in pre-tax profit, up 18% over the first 9 months of last year.

In second place is MB with pre-tax profit of VND7,284 billion in the third quarter and VND20,019 billion in the first nine months of the year, up 16% and 10% respectively.

The next two banks with the most profits are BIDV and Techcombank with VND5,893 billion and VND5,843 billion respectively. However, both banks witnessed a decline in profits of 12% and 13% respectively compared to the same period last year.

In the first 9 months of the year, BIDV still maintained a 12% profit growth (reaching 19,763 billion VND), while Techcombank decreased by 18% (reaching 17,115 billion VND).

Đa phần các ngân hàng suy giảm lợi nhuận trong quý III ảnh 1

Most banks' profits declined in the third quarter.

Some other banks also recorded positive business results and positive profit growth, such as: ACB reached 5,035 billion VND in the third quarter, reaching 15,024 billion VND in the first 9 months of the year, growing by 13% and 11% respectively.

HDB achieved VND3,147 billion in Q3, up 16% compared to and VND8,631 billion in 9 months, up 8% compared to the same period. Sacombank achieved VND2,085 billion in profit in Q3 (up 36%) and VND6,840 billion in 9 months (up 54%).

OCB also recorded a profit increase of 49% in the third quarter and 48% in the first 9 months, reaching 1,355 billion VND and 3,915 billion VND respectively...

Some other banks recorded positive profit growth in the third quarter including: MBS, Kienlongbank, SaigonBank...

Why many banks' profits are falling?

Among the 16 banks that reduced profits, NCB was the worst performing bank and the only one with a loss in the third quarter. Specifically, according to the consolidated financial report, despite many positive changes in foreign exchange and investment securities trading activities, NCB still recorded a negative pre-tax profit of more than VND244 billion in the quarter. In the first 9 months of the year, the bank lost VND230.5 billion.

NCB's loss mainly came from operating costs, amounting to more than VND341 billion, up 61% over the same period.

Explaining the loss in the first 9 months of the year, NCB said that due to the general economic fluctuations of the economy, the financial market, especially the corporate bond market, securities, real estate... has significantly affected the operations of businesses and individuals who are customers of NCB, leading to a decrease in net income in service activities and other activities of the bank.

One bank that recorded a sharp decline in profits was Eximbank. Accordingly, the bank's pre-tax profit decreased by 76% in the third quarter, down to only VND307 billion (from VND1,278 billion in the third quarter of 2022). Accumulated in the first 9 months of the year, this bank's profit also decreased by 46% to VND1,712 billion.

According to Eximbank's explanation, the reason for the decline in profits is due to the extremely difficult developments of the domestic economy, which has greatly affected the operations of the Bank's customers.

Accordingly, Eximbank's net interest income decreased by nearly 42%, equivalent to a decrease of VND 625 billion in the quarter. This decline was due to the Bank reducing lending interest rates to support customers, while high capital mobilization interest rates from October 2022 have increased capital mobilization costs.

Along with that, the cost of credit risk provision increased by 466 billion VND, which is also the reason for the decline in this bank's profit.

ABBank recorded pre-tax profit of VND29.5 billion, down 65% compared to the same period last year (nearly VND86 billion). In the first 9 months of the year, this bank recorded pre-tax profit of VND708 billion, down more than 60% compared to the same period last year.

The reason for the decline in profits was that the bank's net interest income decreased by VND576 billion (down 21%), net profit from other activities decreased by 76% to VND262 billion; meanwhile, credit risk provision expenses increased to VND532 billion.

Other banks that witnessed a decline in profits in the third quarter include: VietABank (down 67%), BacABank (down 73%), VietBank (down 66%), PGBank (down 60%), VPBank (down 31%), TPBank (down 26%), SeABank (down 6%), NamABank (down 24%), BaoVietBank (down 6%)...

The reasons, in general, come from the decline in net interest income, due to low credit growth, narrowing net interest margin (NIM) (high deposit interest rates, reduced loan interest rates); while operating costs and credit risk provision costs increase...

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