Five banks score $1B profit in 2023

By Quynh Trang   February 10, 2024 | 08:30 pm PT
Five lenders, comprising four state-owned and one private bank, posted profits of over $1 billion last year.

Vietcombank led the list, same as previous years, with a post-tax profit of VND41.2 trillion ($1.69 billion) up 10% from 2022 and creating a large gap with its competitors.

The state-owned lender managed to cut its provisions (money set aside for future losses) by half compared to last year.

It was followed by BIDV at VND27.6 trillion, up 20%. The lender also reduced its provisions and saw higher profits from services, currency exchange and stock investment.

Vietinbank and Agribank, both state-owned, also made it to the billion-dollar profit club at the respective places of fourth and fifth.

Vietinbank posted VND25 trillion in profits, up 20%, thanks to an increase in income from loans.

The lender was among a few that managed to reduce its bad debt ratio throughout the year.

Agribank also recorded a profit of VND25 trillion, exceeding its target by 6%.

MB was the only private lender on the list, securing third place with a profit of VND26.3 trillion, up 16%.

Its credit growth was 28% last year, much higher than average. The company focused on disbursing loans in the property sector with VND43.2 trillion approved for property developers by the end of December, doubling from the beginning of the year.

Two banks that almost made it to the billion-dollar club were Techcombank and ACB.

Techcombank saw profits drop 10% to VND22.9 trillion after nearly a decade of continuous growth as it had to increase provisions.

ACB recorded the first VND20 trillion profit thanks to a VND2.6 trillion profit from stock investment. It also managed to cut expenses in the last quarter.

VPBank, which recorded billion-dollar profit in 2022, did not make it on to the list this year as profit plunged by half to almost VND11 trillion amid rising bad debt and declining income from loans.

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