Vietcombank continues to achieve record profits

By Quynh Trang   January 31, 2024 | 10:44 pm PT
Vietcombank continues to achieve record profits
A Vietcombank branch. Photo by Vietcombank
State-owned lender Vietcombank reported record pre-tax profits of VND41.2 trillion (US$1.68 billion) for 2023.

Its previous highest was VND37.4 trillion a year earlier.

It made the bank the most profitable in the industry by a margin of tens of trillions of dong.

But its net interest income barely grew and non-interest income such as from services and foreign exchange transactions also underperformed.

Profits before credit risk provisioning were worth VND45.8 trillion, a 2.2% decline.

But halving the provisioning to VND4.5 trillion meant the lender maintained profit growth.

Vietcombank’s bad debts ratio (groups three to five) increased from 0.68% at the beginning of the year to 1% by the end, while loans that require attention (group two debts) surged by 40% to over VND5.55 trillion.

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