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The bank won big, the profit was trillions of dong

Profit picture of bank in the first quarter

The shareholders’ meeting season is entering its peak. Many business plans of banks are gradually being revealed. Up to now, a number of banks have not held their general meeting of shareholders, so the actual data of the whole industry has not been announced. However, preliminary estimates from securities companies show that, based on published meeting documents, there are quite a few bright colors on the profit picture of banks.

According to estimates by SSI Research, average profit before tax will grow from 9 to 11% compared to the same period in 2021. However, there is a clear differentiation between banks, the group of banks with state capital will have a higher level of profit. growth will be slower due to its large scale and high growth rate in 2021. Joint stock banks will have a higher average growth rate, from 25-27%. There are even banks with 3-digit growth.

The bank won big, the profit was trillions of dong - Photo 1.

In the first quarter of this year, banks are still the group with positive profit growth. (Illustration image – Photo: Investment Newspaper)

According to Yuanta Securities, the profit of 27 listed banks in the first quarter is expected to increase 11% over the same period, but compared to the fourth quarter of 2021, up 28%.

Profits of many banks have high growth

Notably, the difference is that every year, credit usually grows slowly at the beginning of the year, after Tet. However, this year reversed, the high capital demand from the beginning of the year helped many banks make big profits from lending activities.

VPBank earned nearly 11,150 billion dong in pre-tax profit in the first quarter, nearly 3 times higher than the same period last year. This is the highest increase ever.

“Contribution from basic business activities increased by 65% ​​and the rest came from support fee transactions and insurance contracts. The growth from basic activities came from growth of products and services, in That has more than 10% credit, twice as high as the whole industry,” shared Ms. Le Hoang Khanh An, Chief Financial Officer, VPBank.

In addition to credit, many banks also seek to diversify their revenue sources. As VIB bank has earned more than 1,800 billion dong, up to 68%. In which, revenue from service fees accounts for a relatively high proportion, such as revenue from insurance, payment guarantee…

“VIB’s non-credit fees are among the highest in the banking industry, especially fees from banca, bancassurance and non-credit fees from credit cards, which account for nearly 80% of service fees.” Ms. Tran Thu Huong, Strategy Director cum Head of Retail Banking Division VIB, said.

SSI Research estimates that, in 12 out of 13 banks that disclose information, profit growth ranges from 14% to over 170%.

“Credit growth in the first quarter was quite high above 5%, much higher than the same period in 2021. Banks maintained a stable profit margin and handled bad debts quite well, so we estimate Banks’ profits increased by about 26%”, said Mr. Pham Luu Hung, Chief Economist, SSI Securities Joint Stock Company.

Increase charter capital – improve operational capacity for the bank

During this year’s shareholders’ meeting season, many banks are also actively looking for ways to improve capacity and improve operational quality, for example, by finding ways to meet higher capital adequacy standards according to basel 2 and basel. 3, the most obvious one is the plan to increase charter capital.

Aiming to increase charter capital to VND 10,400 billion this year, from over VND 9,400 billion, ABBank will spend capital to invest in technology infrastructure and improve operational efficiency.

The bank won big, the profit was trillions of dong - Photo 2.

In addition to credit, many banks also seek to diversify their revenue sources. (Illustration image – Photo: Investment Newspaper)

“With the increased capital, we will invest in digital solutions to have the best experience for customers. We have a product that sells customers what we have, now we have to research customers to design Design solutions that are suitable for customers’ needs to sell what customers need,” said Mr. Dao Manh Khang, Chairman of the Board of Directors of An Binh Commercial Joint Stock Bank ABBank.

A series of other banks are also planning to increase capital such as VPBank, Seabank, TCB…, mainly through the plan of paying dividends in shares, paying bonus shares or issuing additional shares to existing shareholders.

“The plan to increase capital of banks is stronger than in previous years through the form of selling capital to foreign investors or paying dividends in shares instead of in cash. The driving force behind the capital increase move. of banks comes from the fact that the banks’ capital ratios themselves are relatively low, compared with banks in the region in the context of the risk of bad debt increasing this year because the economy is affected. severely affected by the COVID-19 epidemic last year,” said Nguyen Quoc Hung, General Secretary of the Vietnam Bankers Association.

“Inherently, our credit institutions develop in a healthy, efficient way and gradually improve their position, they also need to increase their financial capacity, increasing finance is increasing additional capital. The third is to supplement operating capital, so there is a basis to consider and adjust to support interest rate reduction”, said Mr. Tran Duc Anh, Director of Macroeconomics and Market Strategy, Securities Company. KBSV securities, share.

With the group of state-owned banks, the State Bank has also allowed four state-owned banks to increase their capital to meet higher capital adequacy standards, while creating opportunities for banks to expand their operations. lending action.

In the first quarter of this year, banks are still the group with positive profit growth. So where does the profit come from and how can the bank maintain its profit growth this year? Will the rising deposit interest rates at some banks affect the profit margins of banks in the coming time? What will banks have to do to ensure profits from lending activities?

The above questions will be answered in the Highlights of the Financial Flow program (April 23), with the participation of Mr. Le Chi Phuc, General Director of SGI Capital Investment Fund Management Joint Stock Company, who has more than 15 years of experience in portfolio management, conducting investment activities in businesses and banks on the stock market.

* Invite readers to watch programs broadcast by Vietnam Television on TV Online and VTVGo!

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