Private bank profit tops $1B

By Quynh Trang January 31, 2023 | 03:00 am PT

An employee counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy

After the four state-run banks announced profits of around the US$1-billion mark for 2022, private lenders Techcombank and VPBank have followed suit.

Top private bank Techcombank reported a 10% rise in pre-tax profits to VND25.6 trillion ($1.08 billion) to rank second behind only public sector giant Vietcombank.

Its net interest income rose by 14% to VND30.3 trillion and income from services like payments, cash, insurance, and letters of credit by 25% to VND9.7 trillion.

Operating expenses surged by 20% to VND13.4 trillion. Its bad debt provisioning fell to VND1.9 trillion.

VPBank reported pre-tax profit of more than VND21.2 trillion, up nearly 50% and the fourth highest in the banking industry.

Net interest income rose by 19% to VND41 trillion, and operating expenses and provisioning by 31% and 16% to VND14 trillion and VND22.4 trillion.

Techcombank’s bad debts to total assets ratio rose from 0.66% to 0.9% even as assets rose by nearly 23% to VND699 trillion.

VPBank’s consolidated bad debts ratio soared from 4.57% to 5.73% as of the end of last year.

The four state-run banks are Vietcombank, BIDV, VietinBank, and Agribank.