VietNam Asia Commercial Joint Stock Bank (Viet A Bank) has just released its consolidated financial statements for the third quarter of 2019 with many businesses recording a decline.
Specifically, in the third quarter of 2019, the net interest income of Viet A Bank’s core business was only 336.6 billion dong, down 8.5 percent compared to the same period in 2018. Service activities also brought about losses of more than 1.8 billion dong. In addition, profits from other business activities such as foreign exchange trading, securities and investment securities trading are all very low, below one billion dong.
Because of these business results, Viet A Bank’s net profit from business activities also decreased by more than 12 percent over the same period, to nearly 195.8 billion dong.
However, due to a strong reduction in provision expenses from 195.4 billion dong in the third quarter of 2018 to 125.9 billion dong, the bank’s profit before tax increased by 53.2 percent to 70 billion dong.
Accumulated in nine months of 2019, Viet A Bank’s net interest income plummeted by 12.5 percent to 788 billion dong. Loss from service activities was nearly 8.6 billion dong, while the same period last year it was only 5.7 billion dong; both trading of securities and foreign exchange fell by 15 percent and 63 percent respectively over the same period in 2018.
Investment securities alone rose strongly to over one billion dong and other activities also increased by 272 percent to nearly 35 billion dong.
Similar to the third quarter of 2019, due to the decline in business in all segments, the net profit from the bank’s business operations plummeted by 24.1%. But thanks to a cut of more than 37.3 percent of provision expenses, equivalent to a decrease of 133.7 billion dong, Viet A Bank’s profit before tax still recorded growth and reached 152.4 billion dong.
Total assets of the bank as of September 30, 2019 increased slightly by nearly two percent to 72.68 trillion dong. Loan growth in the period reached 12.8 percent with 42.768 trillion dong. Customer deposit balance increased sharply to 47.589 trillion dong, equivalent to an increase of 15 percent compared to the beginning of the year. In the opposite direction, other assets dropped by over 11.1 percent to only 4.56 trillion dong and receivables dropped sharply by 47.7 percent to only over 760 billion dong.
Notably, Viet A Bank does not publish full financial statements including explanation so there is no information on bad debt situation at this bank.
