Banks make big profits from gold trading

From the group of state-owned banks participating in gold stabilization to commercial banks licensed to trade in gold, all are making big profits from gold in the context of increasingly high gold prices.

In 2024, there will be bank State-owned banks including Agribank , Vietcombank, BIDV, Vietinbank are allowed to sell SJC gold bars to stabilize the market according to the policy of the State Bank. This group of banks only sells and does not buy, and is allowed to earn a profit of 1 million VND/tael, which has helped these banks earn a significant profit. In the context of gold prices continuously increasing from 2024 to now, surpassing the mark of 102 million VND/tael, making banks earn large profits.

According to the 2024 financial report just released by Agribank, pre-tax profit reached VND 27,575 billion last year, up 7.5% over the previous year. In 2024, many of Agribank's main business segments recorded positive growth results such as lending, services and foreign exchange. Specifically, net interest income reached VND 66,554 billion, up 19.3%, leading the entire banking industry.

Similarly, net profit from service activities increased by 10.1% to VND5,026 billion, while the gold and foreign exchange trading segment earned a profit of VND4,539 billion, double that of last year.

Banks all make big profits from selling gold (photo: Nhu Y).

Vietcombank in 2024 achieved profit after tax over 33,850 billion VND, an increase of 2.2% compared to 2023. Of which, revenue from gold sales alone reached nearly 48 billion VND, while in 2023 there was no such category. Profit from gold revaluation reached over 16.7 billion VND. In total, the gold-related items alone helped Vietcombank add more than 64 billion VND to its total profit.

Similarly, BIDV reported after-tax profit in 2024 reaching more than VND 25,600 billion, an increase of 16.5% compared to 2023. Of which, revenue from gold business reached more than 46.7 billion VND (in 2023 there is no such item).

Vietinbank will achieve after-tax profit of more than VND25,480 billion in 2024, a sharp increase of over 27% compared to 2023. Of which, revenue from gold trading contributes more than VND860 billion to the bank's profit, but down from the revenue of nearly VND1,400 billion in 2023.

Outside the banking group State-owned and some commercial banks licensed to trade gold also make big profits over the years.

For example, MSB Bank recorded more than VND 1,070 billion in net profit from foreign exchange trading in 2023. Of which, the bank combined "revenue from spot foreign exchange and gold trading" to reach more than VND 1,200 billion, up 20% compared to 2022 and accounting for 20% of total income from foreign exchange trading. In 2021, revenue from spot foreign exchange and gold trading reached nearly VND 475 billion, up 96% compared to 2020.

At TPBank, in 2023, revenue from spot foreign currency and gold trading will reach more than VND 876 billion, down 17% compared to 2022, accounting for 32% of total income from foreign exchange trading activities.

In the 2019-2023 period, revenue from spot foreign currency and gold trading at TPBank continuously grew, from more than VND 470 billion in 2019 to VND 1,058 billion in 2022, but by 2023 it suddenly decreased to more than VND 876 billion.

At Eximbank, revenue from gold trading in 2012 reached more than VND 830 billion. This is considered the largest profit to date. In the period 2019-2023, revenue from gold trading at Eximbank fluctuated below VND 200 billion per year. The lowest in 2023 was only over VND 38 billion, down 72% compared to 2022, accounting for only 0.41% of total income from foreign exchange trading activities.

Eximbank and MSB are among the banks participating in the session. gold auction in 2024 of the State Bank.

Source