In recent years, all banks wanted to reduce the proportion of net interest income and increase non-interest income due to ‘leveraging’ bad debts. However, the fact showed that even when struggling in the lending threshold, the net interest income of most banks still grew positively.
According to VnEconomy, in terms of the income structure of the banking industry in the first nine months, net interest still accounted for 70 percent of the total income. Also, the number of banks recording double-digit net interest income growth was 17 out of 22.
Typically, Southeast Asia Commercial Joint Stock Bank (SeABank) ended nine months, with 2.255 trillion dong of net interest income. While in the same period last year, the bank recorded 1.626 trillion dong. Thus, SeABank was temporarily the leading banks with a net interest income growth of 38.6 percent.
At Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank), business results in this segment also grew sharply when reaching 7.405 trillion dong after nine months, corresponding to an increase of 34 percent compared to the same period last year.
At Tien Phong Commercial Joint Stock Bank (TPBank), by the end of Q3/2019, the bank recorded an increase of 323 billion dong in net interest income, to 1.442 trillion dong. In nine months, the credit segment at TPBank gained 4.13 trillion dong, increased by 32.6 percent.
Some banks also saw double-digit growth of interest income, including Vietnam International Commercial Joint Stock Bank (VIB); Vietnam Maritime JointStock Commercial Bank (MSB); Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank); Military Commercial Joint Stock Bank (MBBank); Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank); Kien Long Commercial JointStock Bank (Kienlongbank); Vietnam Technological and Commercial Joint-Stock Bank (Techcombank); Vietnam Prosperity Joint-Stock Commercial Bank (VPBank); Orient Commercial Joint Stock Bank (OCB); Asia Commercial Joint Stock Bank (ACB); Viet Capital Commercial Joint Stock Bank (Viet Capital Bank); Bac A Commercial Joint Stock Bank (Bac A Bank); An Binh Commercial Joint Stock Bank (ABBank); Vietnam Thuong Tin Commercial Joint Stock Bank (Vietbank).
Besides, in the two banks, Saigon Bank for Industry and Trade (Saigonbank) and Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), although the credit business activity still recorded an increase in profits, the increase was not equal to the above banks. In particular, the net interest income of Saigonbank and BIDV respectively increased by 9.4 percent and three percent.
According to experts, the debit balance was the number following the time. But during the three quarters, banks had made a cumulative net interest income of more than 20 percent, while the interest balance only increased by 12 percent to 15 percent. The net interest income of the bank had expanded quite well, which meant optimally useful input.
However, not all banks’ profit from credit activities increased. In the market, three banks reported a decrease in net interest income over the same period.
For Petrolimex Group Commercial Joint Stock Bank (PGBank), most of the bank’s businesses declined. In particular, net interest income reached 631 billion dong, fell by 1.8 percent compared to the same period last year. Similarly, the National Citizen Commercial Joint Stock Bank (NCB) also recorded a net interest income decrease of 4.8 percent, equivalent to only 704 billion dong.
Vietnam Asia Commercial Joint Stock Bank (Viet A Bank) bank also saw a sharp drop of 12.5 percent in net interest income in the first nine months of 2019 to 788 billion dong. In fact, besides traditional credit, other activities in VietABank also decreased.
