Bancassurance revenue plunges by half

By Minh Son   June 4, 2023 | 04:00 am PT
Bancassurance revenue plunges by half
A cash transaction is seen at a bank in Hanoi. Photo by VnExpress/Giang Huy
Banks saw revenues from insurance dropping by half year-on-year in the first quarter after years of high growth.

TPBank posted VND116 billion ($4.94 million) in revenue from selling insurance packages, while VIB recorded VND118 billion in the same category; both declined by around 50%.

SeABank also saw a similar decline, while the figure dropped 10% at MB.

The drop in insurance revenue also brought down services revenue of many banks.

MB recorded VND700 billion in revenue from services, down 36% year-on-year. The figure fell by 47-57% at Vietcombank, SeABank and Sacombank.

The sale of bancassurance has been booming in recent years as banks partner with insurance companies to sell policies to their customers.

Premiums from bancassurance in the first half of last year accounted for 41% of revenue from new insurance contracts. The figure is forecast to reach 50% in the near future.

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