Banks reported strong profits in the first quarter of 2022
At the end of the first quarter of 2022, with the credit growth of the whole industry increasing by 5.04% and the increase in non-interest income, which had a positive impact on business results, many banks reported strong profits.
Net profit, services both increased
LienVietPostBank reported pre-tax profit exceeding VND 1,700 billion, up 62% over the same period. The bank’s pre-tax profit increased by 62% y/y to over VND 1,795 billion mainly thanks to the strong growth in net interest income during the period.
In which, net interest income increased by 40% over the same period due to the scale of retail lending, interest recovery of COVID-19 structural loans as customers recovered their business operations.
In addition, the bank said that it has flexibly balanced its capital to match the speed of credit growth, thus optimizing the efficiency of resource use.
Net profit from service activities increased by 34.4%, reaching 217.4 billion VND thanks to services such as insurance, card, digital banking. Other business activities also brought the bank more than 191 billion dong in net profit, increasing many times over the same period.
On the other hand, forex trading and investment securities both recorded a loss of 14.5 billion dong and 9.6 billion dong in the first quarter of 2022, respectively.
At the end of the first quarter of 2022, VPBank’s consolidated pre-tax profit reached over VND 11,146 billion, nearly 3 times higher than the same period last year.
This is the record profit in a quarter that VPBank has recorded so far, contributing to bringing the bank’s equity to over VND 95 trillion and capital adequacy ratio (CAR) according to Circular 41. over 15%.
Notably, the profit growth rate from the core business of the individual bank reached more than 56%, along with the impressive recovery in business activities of FE Credit, promising to create momentum. for VPBank to make a strong breakthrough in 2022.
In the first three months of the year, quality credit growth at VPBank alone reached 10.3%, double the industry average, with the main contribution from strategic segments.
Along with that was deposit growth of 11.5%, helping to ensure the bank’s liquidity ratios well.
In which, although FE Credit had negative credit growth in the previous two quarters, it has caught up with a new growth cycle when it achieved an increase of 1.6% compared to the fourth quarter of 2021.
Consolidated net interest income reached VND9,888 billion, up 8.4% y/y and 16% qoq, with the parent bank increasing by nearly 30% and over 16% respectively.
Consolidated service fee income, meanwhile, grew 26.5% year-on-year. This ratio at the parent bank recorded an increase of nearly 30% and at FE Credit was 4.8% over the same period.
Other incomes grew 9 times over the same period, including support fees from the exclusive cooperation agreement on insurance distribution between VPBank and AIA Vietnam Life Insurance Company.
Income from debt settlement of the consolidated bank also achieved a positive result with VND 714 billion, up 21.3% compared to the previous quarter.
In second place is Vietcombank with an estimated profit before tax of 9,500 – 10,000 billion VND, up 10-16% compared to the same period in 2021. The reason is that Vietcombank’s credit growth remained strong in the quarter (up 6- 6 ). 7%).
BIDV also forecasts profit growth of VND 4,200 billion in the first quarter of 2022.
Sacombank also experienced strong profit growth in the first quarter of 2022 with an increase of 40-50% over the same period (probably reaching VND1,400-1,500 billion in pre-tax profit), mainly thanks to strong operating income and well control contingency costs.
MSB also forecasts an impressive profit growth (up 31%, reaching VND 1,500 billion) thanks to a credit growth of .5% compared to the beginning of the year and a controlled bad debt ratio of less than 1.3. %
TPBank’s pre-tax profit in the first quarter of 2022 reached VND 1,623 billion, up 14% over the same period last year.
The growth driver mainly came from net interest income and service activities, which helped the bank to grow well despite having to sharply increase provision for risks.
The bank’s first quarter net interest income reached VND2,831 billion, up 25% over the same period in 2021.
Notably, profit from service activities increased by 81% to VND 511 billion with the largest contribution coming from payment activities, business activities, and insurance consulting.
The foreign exchange business was also positive, with a profit of 32 billion dong while the same period had a loss of 2 billion dong.
SHB’s profit in the first quarter of 2022 is more than 3,200 billion dong, confident to achieve the plan of more than 11,600 billion dong this year.
In the first quarter of 2022, ACB’s consolidated profit was about VND 4,200 billion, up 35% over the same period.
Credit to the end of the first quarter of 2022 increased by 5.2% compared to the beginning of the year, deposits increased by 1.6%. The rate of CASA reached 27% at the end of the first quarter of 2022.
The service and insurance segments both grew well. Non-interest income is about 1,300 billion VND, bancasurance leads the market. Currently, the Bank’s CASA ratio is about 24%, with the advantage of digital banking, the year-end target of about 28-29% is feasible.
Race to report profits in the first quarter of the year
In the first quarter of this year, ABBank’s main activities grew by 20% over the same period, earning nearly VND828 billion in net interest income.
Some non-interest income sources grew more than the same period last year such as interest from services (+16%) and profit from foreign exchange trading (+81%).
In contrast, securities trading activities lost nearly 58 billion dong while the same period gained nearly 114 billion dong; investment securities trading lost more than 10 billion dong.
Net profit from business activities reached nearly VND 620 billion, up 3% over the same period. Because in this quarter, ABBank reduced the cost of credit risk provision by 63%, only deducting more than 44 billion dong, resulting in a 20% increase in profit before tax, reaching nearly 576 billion dong.
Compared to the plan of VND3,079 billion in pre-tax profit set for the whole year of 2022 approved by the General Meeting of Shareholders, ABBank has achieved 19% after the first quarter of the year.
According to Bac A Bank’s consolidated financial report for the first quarter of 2021, pre-tax profit increased by only 7% over the same period to nearly VND 246 billion, due to a sharp decrease in non-interest income.
Bac A Bank’s main activities still grew by 17% over the same period, earning nearly 531 billion dong in net interest income. Service activities increased by 5%, earning nearly 17 billion dong in profit, thanks to an increase in payment income.
Meanwhile, other non-interest income sources went back compared to the same period last year, such as profits from investment securities trading down 78%, profit from other activities down 63%, foreign exchange trading reported a loss of nearly 10 billion dong. while the same period only lost more than 1 billion dong.
In the first quarter of 2022, Bac A Bank deducted nearly 17 billion dong for credit risk provision and reversed more than 9.4 billion dong, resulting in a pre-tax profit of nearly 246 billion dong, an increase of 7% compared to the same period last year. period.
Compared to the target profit before tax of 1,000 billion dong for the whole year, Bac A Bank has achieved 25% after the first quarter of the year.
Meanwhile, PG Bank said that pre-tax profit reached nearly VND 127 billion in the first quarter of 2022, up 54% over the same period last year and fulfilling nearly 30% of the plan.
In the first quarter of the year, PG Bank’s main activities were not satisfactory when it only earned nearly 235 billion dong in net interest income, down 12% compared to the same period last year.
Profit from services increased by 54% to nearly 11 billion dong, thanks to an increase in revenue from payment services and treasury, as well as the recognition of additional revenue from business and insurance services.
Foreign exchange business earned more than 10 billion dong in profit, up 46%, while trading in investment securities decreased by 47%, leaving just over 29 billion dong in profit.
Notably, other activities brought in a profit of more than 63 billion dong while the same period reported a loss of nearly 44 billion dong.
In the first quarter of 2022, this bank deducted nearly 69 billion VND for credit risk provisions, up 10% over the same period.
Viet Capital Bank also just announced pre-tax profit of VND 173 billion in the first quarter of this year, up 14% over the same period in 2021.
Specifically, the bank’s credit forecast has grown by 6.8% compared to December 2021, net income from business activities will grow by 23%, achieving profit in the first quarter according to the set target with 173 billion VND. VND, up 14% over the same period last year.
According to the recently released consolidated report for the first quarter of 2022, Saigonbank recorded a 43% increase in net interest income compared to the first quarter of 2021, reaching more than VND 212 billion.
The bank’s profit from service activities in the past 3 months increased by more than 11%, mainly due to an increase in payment service revenue and other services. Revenue from treasury services decreased slightly this quarter.
Meanwhile, foreign exchange business had impressive growth, recording a profit of 16.2 billion dong, up 137.5% over the same period last year. Profit from other business activities also increased by more than 154%, at more than 47 billion dong.
Saigonbank’s operating expenses decreased by 10% to VND107.3 billion. Net profit from business activities reached VND 177 billion, up 223.5%.
The bank deducts nearly 78 billion VND for credit risk provision expenses in the first quarter of 2022. Profit before tax reached 98.7 billion dong, up 68.4% over the same period.
According to the latest report from SSI Research, the average profit growth of banks in the first quarter of 2022 will reach one to two low digits.
However, this growth rate will have a divergence among banks and be relatively low compared to the high comparability in the same period in 2021.
Specifically, SSI estimates that the average growth in profit before tax is only about 9-11%. This is largely due to the fact that VietinBank and Vietcombank have reduced profits from a high comparability in the same period in 2021.
Meanwhile, the remaining banks are assessed by SSI to achieve relatively good growth in pre-tax profits, averaging around 25-27% over the same period.
In which, the highest growth in pre-tax profit is expected at SHB, ACB, Sacombank, MSB, VPB and LienVietPostBank.
According to the Pope
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