In the first quarter of 2023, banks' profits were clearly differentiated and no longer had the same high growth rate as in 2022. Total pre-tax profit of 28 banks that announced their first quarter’s financial statements recorded a decrease of 3.5% over the same period last year with more than VND 65,800 billion.
Vietcombank continued to hold the top position in pre-tax profit with VND 11,221 billion, up 12.8% over the same period last year. The top three leading banks have changed including Vietcombank, BIDV and MB, while Techcombank dropped to the 5th place following VietinBank. and VPBank to the 10th place.
BIDV rose to the second place with pre-tax profit of VND 6,920 billion, an increase of more than 53% over the same period last year, which is also one of the highest profit growth in the first quarter of the year in the system.
BIDV's profit growth partly came from maintaining the growth momentum of its main business segments, but it was largely influenced by the reduction of more than VND 1,000 billion in risk provision expenses (down 25% over the same period last year).
In terms of growth, the three banks with the highest profit growth in the first quarter over the same period were Vietbank (up 74.3%); Kienlongbank (59.2%) and BIDV (53.3%). In addition, many banks also recorded double-digit growth in profit such as Sacombank, PG Bank, ACB, VIB, Vietcombank, MB, SHB, OCb, Nam A Bank, and Bac A Bank.
In contrast, banks with the strongest profit decline were Viet Capital Bank (down 85%); NCB; and VPBank.
With main business segments all recording a decrease in net profit, Viet Capital Bank’s net profit from business activities decreased by more than 62%. In addition, an increase in risk provision expenses has also made profit before tax to decrease to only more than VND 25 billion while the figure for the same period last year was VND 173 billion.
VPBank, which once achieved the top profit in the first quarter of 2022, recorded a decrease in pre-tax profit to VND 2,550 billion, down 77% compared to the same period last year. This is partly due to the lack of sudden income from prepaid insurance premiums as previously recorded, and also poor business activities.
Source: vietnambiz
Compiled by VietnamCredit
