In addition to credit and services, trading of investment securities also contributed a significant proportion to the total profit of banks in the first nine months of 2019.
Q3 financial report of Vietnam Technological and Commercial Joint-Stock Bank (Techcombank) showed that, during the period, the Bank’s net interest income reached 3.622 trillion dong, increased by 16.2 percent over the same period last year.
In which, profit from the trading of investment securities increased sharply, reaching 446 billion dong, while the same period saw a loss of 39 billion dong.
Gains from trading of trading securities reached 111 billion dong, equivalent to the level achieved in the same period. This result contributed to the profit before tax of Techcombank in the first nine months increased by 14 percent over the same period, reaching 8.86 trillion dong, while profit before tax in Q3 reached 3.198 trillion dong, increased by 24 percent.
In case of Orient Commercial Joint Stock Bank (OCB), the securities trading segment brought in 341 billion dong in Q3/2019, more than two times higher than the same period in 2018 (reaching 167 billion dong). However, due to the less favourable trading of securities in the first two quarters, the accumulated nine months profit from this activity was still seven percent lower than the same period.
However, in Q3/2019, OCB’s profit before tax increased by 51.6 percent over the same period, reaching 825 billion dong (of which, the parent bank’s interest was 824 billion dong) and accumulated in the first nine months reached 1.942 trillion dong. Profit before tax increased by 15.3 percent.
At Vietnam Prosperity Joint-Stock Commercial Bank (VPBank), except for foreign exchange business losses, the remaining businesses had positive results, even growing by times, such as trading of business securities, investment securities. VPBank recorded received interest of 145 billion dong and 200 billion dong respectively, rising by 248 percent and 172 percent over the same period of 2018.
The surge in the securities business segment has partly helped VPBank to offset the shortage of the insurance segment during the period when it no longer recorded high profits as in the same period. As a result, VPBank’s consolidated profit before tax for Q3/2019 reached 2.856 trillion dong, an increase of 63 percent, and that of the first nine months of 2019 reached 7.199 trillion dong, an increase of 17.5 percent over the same period of 2018.
In particular, FE Credit’s profit was nearly 3.5 trillion dong, contributing approximately 49 percent to the consolidated bank profit.
At Military Commercial Joint Stock Bank (MBBank), trading of business securities in Q3/2019 recorded a net profit of nearly 161 billion dong, while the same period saw a loss of over 48 billion dong, increasing the accumulated nine-month profit from this activity to 421 billion dong, increased by 50 percent over the same period of 2018. Together with service activities (interest of 2.312 trillion dong, an increase of 37 percent), foreign exchange trading (profit of 472 billion dong, an increase of 56 percent), and so on, had created a nine-month pre-tax profit of 7.616 trillion dong for this bank, an increase of 26.6 percent over the same period of 2018.
Of course, not all banks get bright results from the securities business. For example, at Asia Commercial Joint Stock Bank (ACB), ending the first nine months of 2019, the securities trading segment recorded a profit of 77 billion dong, declined 44.2 percent compared to the same period of 2018.
Thanks to a decrease in provision (76 percent) and growth in service activities (31 percent), ACB’s nine-month profit increased by 16 percent to 5.561 trillion dong.
Interest from securities trading activities of Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) in the past nine months reached 262 billion dong, decreased by 61.5 percent over the same period. The investment securities suffered a loss of 266 billion dong.
However, many other businesses saw good results like profit from other activities increased by 25 percent to 3.592 trillion dong. The income from capital contribution of share purchase reached 177 billion dong, surpassing by 24 percent, and so on, contributing to BIDV 7.028 trillion dong of profit before tax in the last nine months.
Similarly, Kien Long Commercial JointStock Bank (Kienlongbank)’s investment securities trading only gained 42 billion dong in the first nine months of 2019, decreased by 60 percent compared to the same period of 2018. However, accumulated nine months’ profit before tax increased by six percent, reached 236 billion dong.
In general, the business results in the first nine months of this year were bright, even though there were not positive activities, including securities business. Many banks achieved high-profit growth, increasing compared to the same period last year.
In particular, many banks had joined the trillion-profit club, like ACB, VPBank, OCB, etc.
