In the dynamic landscape of the banking sector, 2023 witnessed notable performances from select financial institutions, with several banks securing billion-dollar profits. Among these, MB emerged as the sole private bank to achieve this significant milestone, alongside four state-owned counterparts.
Despite facing challenges such as increased bad debt and credit disbursement difficulties, the banking sector continued its profitability trajectory, albeit at a slower pace compared to previous years.
Leading the profit rankings is Vietcombank, with a consolidated pre-tax profit exceeding 41.2 trillion VND, marking a 10% increase over the previous year. Following closely is BIDV, with profits surpassing 27.6 trillion VND, indicating a robust growth rate of over 20% year-on-year.
While both Vietcombank and BIDV reported stagnant growth in core credit activities, their profitability was buoyed by strategic measures. Vietcombank’s profit surge was fueled by a significant reduction in risk provision costs, while BIDV leveraged non-credit revenue streams such as services, foreign exchange, and securities trading to drive profitability.
In the realm of state-owned banks, VietinBank demonstrated resilience, achieving a profit of 25 trillion VND, nearly 20% higher than the previous year. Notably, the bank managed to reduce its bad debt ratio, contributing to its overall profitability. Similarly, Agribank exceeded profit targets by 5-6%, amassing around 25 trillion VND in profits, albeit with a continued focus on enhancing profitability to support expansion plans.
Among private banks, MB emerged as the profit leader, reporting a pre-tax profit of 26.3 trillion VND, marking a significant uptick of nearly 16%. Noteworthy was MB’s robust credit growth rate of 28%, notably driven by increased lending in the real estate sector, where outstanding loans to investors doubled over the year.
Techcombank and ACB, two other prominent private banks, also achieved substantial profits exceeding 20 trillion VND each. However, Techcombank reported a slight decrease in profits by 10% compared to the previous year, attributed to reduced credit income and increased provisioning costs. Despite this, the bank maintained a robust profitability stance.
ACB, on the other hand, experienced a landmark achievement, reaching a profit milestone of 20 trillion VND for the first time. This success was propelled by growth in credit revenue and significant profits from investment securities trading, particularly in the fourth quarter, where operational costs were significantly reduced compared to the previous year.
In contrast, VPBank witnessed a sharp decline in profits, halving its pre-tax profits compared to the previous year. Challenges such as decreased credit income and rising bad debt, particularly in consumer lending, contributed to the bank’s fluctuating performance.
In conclusion, despite varied challenges and fluctuations in profitability, these top banks continue to navigate the evolving banking landscape, demonstrating resilience and strategic agility in achieving significant financial milestones.
