Closing the first quarter (Q1) of 2019, the after-tax profit of Bao Viet Commercial Joint Stock Bank (BaoVietBank) significantly fell by 41 percent compared to Q1 2018, although the bank’s credit risk provision was cut by up to 97 percent.
In the first three months of the year, BaoVietBank’s net interest income and income from other activities increased by respectively 22 percent and 18 percent compared to the same period of last year, reaching 131 billion dong and nearly eight billion dong, respectively. The bank’s net profit from services reaching more than 19 billion dong, doubled the same period of last year.
Meanwhile, the profit from foreign exchange trading and securities trading of BaoVietBank both fell by respectively 88 percent and 90 percent over the same period of 2018, being only one billion dong and 10 billion dong, respectively.
Moreover, the bank’s operating expenses also increased by 24 percent to more than 158 billion dong, leading to the decrease of respectively 47 percent and 41 percent in pre-tax and after-tax profit compared to Q1 2018, reaching nearly eight billion dong and seven billion dong, respectively; although the bank cut the risk provisioning by 97 percent to only three billion dong.
By the end of March 31st 2019, BaoVietBank recorded total assets of nearly 50.945 trillion dong, down by nine percent compared to the beginning of the year; mainly due to the 52 percent decline of deposits at the State Bank of Vietnam and one percent decline of the lending to customers. The bank’s interest and fee receivables increased by eight percent to more than 1.507 trillion dong.
Regarding the mobilisation funds, BaoVietBank recorded 29.439 trillion dong in customers’ deposits, up by nine percent; while the deposits at and lending to other credit institutions dropped by 28 percent to over 13.036 trillion dong and issuance of valuable papers decreased by six percent to over 3.988 trillion dong.
Closing the first three months of the year, the total bad debts of BaoVietBank declined by four percent compared to the beginning of the year, mainly due to the 24 percent decrease in irrecoverable debts, while the under standard debts increased by 66 percent and doubtful debts rose by 23 percent compared to the beginning of the year.
At the same time, the total customer loans of BaoVietBank only fell by one percent compared to the beginning of the year. Therefore, the bank’s ratio of bad debts on customer loans decreased from 3.98 percent to 3.85 percent.
