PGBank announces bleak financial picture ahead of Shareholders' Meeting

Petrolimex Commercial Joint Stock Bank (PGBank, UPCoM: PGB) has just announced its financial report for the third quarter of 2023. Notably, all of the bank's business segments recorded a decline compared to the same period last year.

Specifically, net interest income reached nearly VND 279 billion, down 16% over the same period in 2022. Profit from services decreased by 42% to VND 14.9 billion, profit from foreign exchange trading decreased by 61% to VND 1.6 billion and profit from other activities decreased by 76% to more than VND 7.1 billion compared to the same period in 2022.

While income decreased, the bank's operating expenses continued to increase by 8.7% to VND188 billion. Therefore, although risk provisions decreased by 26% compared to the same period to VND57.2 billion, the bank's pre-tax profit in the third quarter still decreased by 60% compared to the same period, to VND56.6 billion; the corresponding after-tax profit decreased to VND45 billion.

PGBank said the main reason for the decrease in third-quarter profits was a decrease in net interest income. The decrease in this target was due to the difficult general operating situation of the banking industry in the third quarter, leading to low credit growth.

Besides, net profit from service activities decreased by 42% due to the poor general import-export situation of enterprises in the third quarter, leading to a major impact on payment and L/C activities.

Accumulated in the first 9 months of the year, except for the main source of revenue which increased by 10% over the same period, reaching more than 959 billion VND in net interest income, all non-interest sources of revenue decreased. This bank earned 360 billion VND in pre-tax profit, down 7% over the same period.

In 2023, PGBank set a pre-tax profit target of VND530 billion. Thus, after 9 months, this bank has achieved 68% of the year's profit target.

As of September 30, 2023, PGBank's total assets were recorded at VND47,832 billion, down slightly by 2% compared to the beginning of the year. Of which, cash decreased by 35% to VND215 billion, deposits at the State Bank decreased by 50% to VND426 billion and customer loans increased by 5%, reaching VND30,192 billion.

As of this date, PGBank's total liabilities and equity are VND47,833 billion. Of which, customer deposits account for the majority with VND34,098 billion, up 9% compared to the end of 2022.

Regarding debt quality, PGBank's total bad debt at the end of September 2023 was VND796 billion, up 7% compared to the beginning of the year. Notably, substandard debt (group 3 debt) increased by 184%, from VND62 billion at the beginning of the year to more than VND176 billion.

On October 23, PGBank plans to hold an extraordinary general meeting of shareholders in 2023 to restructure its personnel as well as change its trade name and increase its charter capital.

Accordingly, PGBank will consider electing 5 additional members to the Board of Directors, including Mr. Dao Phong Truc Dai, Mr. Pham Manh Thang, Ms. Dinh Thi Huyen Thanh, Mr. Vuong Phuc Chinh and Mr. Nguyen Thanh Lam; and 2 specialized members of the Supervisory Board, including Mr. Tran Ngoc Dung and Mr. Trinh Manh Hoan.

In addition, the bank also increased its charter capital from VND3,000 billion to VND5,000 billion in two forms: issuing shares to increase equity capital and offering shares to the public.

PGBank wants to change its trade name because the old name is associated with its previous major shareholder, the Vietnam National Petroleum Group (Petrolimex). However, Petrolimex has now divested its capital from PGBank and requested the bank to stop using the brands owned by Petrolimex before December 31, 2023.

On the stock market, at the end of the session on October 18, PGB shares decreased 4.04% to VND 26,100/share with a trading volume of 11,660 units .

Thu Huong

Source