State-owned banks maintain double-digit growth

By Minh Son   January 20, 2024 | 06:26 pm PT
State-owned banks maintain double-digit growth
An employee counts Vietnamese banknotes at a bank in HCMC. Photo by VnExpress/Thanh Tung
While several private banks broke their rising profit streaks in 2023, state-owned banks maintained double-digit growth rates.

Fourteen out of 27 listed banks saw profits decrease over the first nine months against the same period in 2022. Businesses’ low capital absorption led to low credit growth, while high bad debt eroded profits, mostly at private lenders.

Three state-owned banks, Vietcombank, VietinBank and BIDV, said they all fulfilled or exceeded their annual profit targets. Vietcombank continued to be the sector’s largest earner as profits increased 10% to VND40 trillion (US$1.6 billion).

VietinBank did not disclose the exact figure, but reported that profits exceeded its plan of VND22.5 trillion, which was a target already up 10.5% against 2022. BIDV’s consolidated pre-tax profits surged 19% to VND27.4 trillion.

Credit growth was the main profit driver at state-owned banks, alongside stable net interest margin (NIM) and controlled provisions.

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