Deposit money in the bank and earn billions of dong in interest every day

(Dan Tri) - FPT Group, Masan and Quang Ngai Sugar have large deposits, earning billions of dong in interest every day. However, Masan is having to bear a higher interest expense than the interest on deposits.

The third quarter 2024 financial reports of many companies so far reveal a rather interesting indicator: bank deposits. Some businesses have deposited thousands of billions of dong in banks and earned huge interest on deposits.

FPT Corporation (stock code: FPT) has 27,373 billion VND in bank deposits as of September 30, accounting for 41% of total assets. Recorded deposit interest is nearly 865 billion VND, equivalent to the company earning more than 3 billion VND in interest each day from depositing money in the bank.

Interest on deposits is also many times higher than the cost of borrowing. In 9 months, FPT had to pay nearly 417 billion VND in interest expense for a financial loan of 14,646 billion VND, as of September 30. The debt/equity ratio is 0.4 times.

Along with the huge deposits, FPT also recorded good business results for the first 9 months, with net revenue increasing by 19%, reaching 45,241 billion VND; profit after tax increasing by 21%, reaching 6,927 billion VND.

Many businesses deposit money in banks (Photo: Manh Quan).

Another company, Quang Ngai Sugar Joint Stock Company (stock code: QNS), also has VND7,064 billion in bank deposits, up 15% compared to the beginning of the year. This amount accounts for 54% of the company's total assets.

Since then, the company has recorded nearly VND175 billion in interest on deposits in 9 months, equivalent to nearly VND650 million in interest per day thanks to depositing money at the bank.

Interest on deposits at the enterprise is higher than interest expense. In 9 months, the company incurred interest expense of nearly 76 billion VND for financial debt of 2,307 billion VND.

In the 9 months, Quang Ngai Sugar also recorded growth results, with revenue increasing by 4% to more than VND 8,069 billion; profit after tax increasing by 14% to nearly VND 1,755 billion.

Masan Group Corporation (stock code: MSN) also earned more than VND1,514 billion in interest from deposits, loans and investment activities in 9 months. Each day, the company earns more than VND5.6 billion in profit. According to the report, Masan has VND12,390 billion in deposits, accounting for 8% of total assets.

However, the large debt makes Masan bear a higher interest expense than the interest on deposits. As of September 30, billionaire Nguyen Dang Quang's company had VND65,739 billion in financial debt, 1.6 times higher than its equity. The company had to bear interest expenses on loans, issued bonds and investment activities of more than VND4,878 billion, equivalent to VND18 billion/day.

Why do businesses not use deposits to serve business activities but have to borrow from banks? Many reasons are mentioned by experts, such as businesses borrowing will benefit from deducting corporate income tax, the deposit will help businesses proactively manage cash flow when needed.

Source: https://dantri.com.vn/kinh-doanh/mang-tien-di-gui-ngan-hang-nam-khong-cung-thu-lai-hang-ty-dong-moi-ngay-20241026072242336.htm