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Tuesday, June 25, 2024

Many banks report handsome profits in Jan-Sept

By Dung Nguyen

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HCMC – Many local banks have released their business results in the January-September period of this year, with many of them reporting high profits.

Specifically, the Saigon-Hanoi Commercial Bank (SHB) recorded a pretax profit of nearly VND5.1 trillion in the nine-month period, surging 93.9% year-on-year and meeting 86% of the target for this year.

Similarly, HCMC Development Joint Stock Commercial Bank (HDBank) put its pretax profit at nearly VND6 trillion, soaring 36% over the same period last year, exceeding the figure in 2020 and meeting 82% of the target for this year.

In addition, the pretax profit of Tien Phong Bank (TPBank), the first bank to report its business results in the third quarter of the year, was VND4.35 trillion in January-September, up over 43% year-on-year.

Small-scale banks recorded high growth in their profits.

Specifically, at KienlongBank, the pretax profit in the nine months rose nearly VND734 billion or over five times the figure reported in the same period last year.

According to the bank, it recorded a handsome profit as it had coordinated with customers to settle mortgaged assets and complete the collection of the principal and interest of loans mortgaged with Sacombank’s shares.

At the National Citizen Bank, the pretax profit reached nearly VND80 billion in the third quarter of this year, much higher than the VND5.3 billion in the same period in 2020. The figure reached over VND205 billion from January to September, 7.2 times higher than that of the same period last year.

According to Fiingroup, a provider of financial data, Vietcombank and VietinBank would report profit growth of 1% and 5% last quarter, respectively, as they had increased their contingency budgets.

Many banks also registered slower growth in the third quarter as a result of the fourth wave of Covid-19 in the southern region. For example, TPBank posted growth of 36%, lower than the 48% in the first half of the year. HDBank’s growth reached 20% last quarter, far below the 44% in the first six months.

Analysts of Maybank Kim Eng Securities Company said that the slower growth of banks in the third quarter was normal and their growth this year would still be positive thanks to their growth in the first half of the year, the economic recovery in the last quarter and support policies.

Yuanta Securities Vietnam, in its latest report, estimated the average profit of banks in the third quarter fell 19% over the second quarter due to low credit growth and increasing contingency budgets.

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