Not only for large banks, many small and medium banks also achieved positive profits in the second quarter as well as the first six months of 2019, but some banks had a profit decline compared to the same period last year such as Saigon Bank for Industry and Trade (Saigonbank), Petrolimex Group Commercial Joint Stock Bank (PGBank), Bac A Commercial Joint Stock Bank (Bac A Bank) and Kien Long Commercial JointStock Bank (Kienlongbank) declined profits
Specifically, Saigonbank’s credit grew by 3.7 percent while its profit decreased by 21 percent compared to the same period last year.
According to the financial statements of Q2/2019, Saigonbank’s profit was over 14 billion dong, down by 24 percent y-o-y. The reason is that net interest income decreased by seven percent to 157 billion dong. The services, foreign exchange trading, trading securities, and other activities all decreased compared to the same period. Although operating expenses decreased by nine percent to 109 billion dong, the bank still reported a decrease of 24 percent to 14.2 billion dong.
For the first six months of the year, Saigonbank recorded net interest income of 316 billion dong, down 3.2 percent compared to the same period last year. Other business activities in the first two quarters also decreased, plus three percent increase in operating expenses, resulting in net profit of only 132.6 billion dong, down 30 percent over the same period.
However, because Saigonbank reduced the provisioning rate from 41 percent in the same period in 2018 to 33.3 percent, equivalent to a deduction of 33 billion dong, the profit before tax only decreased by 21 percent to 88 billion dong.
As of the end of June 30, 2019, Saigonbank’s total assets were 21.291 trillion dong, up by 4.5 percent; outstanding loans were 14.181 trillion dong, an increase of 3.7 percent compared to the beginning of the year; and internal bad debt ratio was 2.25 percent.
Petrolimex Group Commercial Joint Stock Bank (PGBank), in the process of merging HCM City Development Joint Stock Commercial Bank (HDBank), has just announced its Q2/2019 financial statements, recording pre-tax profit of only eight billion dong, down more than half compared to Q2/2018. Accumulated six months, profit reached 94 billion dong, down five percent over the same period.
In the first six months, PGBank’s net interest income decreased by one percent, reaching 430 billion dong; interest from services decreased by 19 percent to 16 billion dong. Foreign exchange gains dropped eight percent to 26 billion dong. On the contrary, the bank recorded other operating gains of seven times over the same period, reaching 55 billion dong. The profit from securities trading increased by 6.5 percent, reaching over 11 billion dong; total operating income was nearly 540 billion dong, up nearly eight percent. Operating expenses were 269 billion dong, not increasing over the same period. However, provision expenses rose by 30 percent, to 175 billion dong, making pre-tax profit down five percent over the same period.
At the end of June 2019, PGBank’s total assets were 28.211 billion dong, down 5.6 percent compared to the beginning of the year. Customer loans increased by 1.2 percent to 22.08 trillion dong; deposits at the State Bank of Vietnam (SBV) decreased by 70 percent to 580 billion dong; customer deposits mobilised decreased by 7.8 percent to 21.519 trillion dong; bad debt was 683 billion dong, up 29 billion dong compared to the beginning of the year; bad debt ratio on total outstanding loans increased from 2.96 percent to 3.06 percent.
PGBank has approved the merger plan of HDBank at the Annual general Meeting of Shareholders in 2018, but so far this deal has not been completed, expected to this end of the year.
At Kienlongbank, the bank achieved 74 billion dong in pre-tax profit in the second quarter of 2019, lower than the 78 billion dong of the same period in 2018. With Bac A Bank, the profit before tax of the second quarter of 2019 was 191 billion dong, decreasing by 15 percent compared to the same period last year.
Vietnam Thuong Tin Commercial Joint Stock Bank (Vietbank) is the only small bank that recorded good growth in profit when the first six months of 2019 reached 250 billion dong, up 24 percent compared to the first six months of 2018. According to VietBank, profit increased not only thanks to some positive activities but also thanks to the reduction of provisioning up to 84 percent compared to the same period last year.
Specifically, in the first six months, the bank’s net interest income reached 590 billion dong, up 8.9 percent. Service activities had a profit of nearly 13 billion dong, doubling compared to the same period last year. Other operating profit increased more than 4.5 times to 59 billion dong. However, foreign exchange and securities trading activities made profit of eight billion dong and 51 billion dong respectively, down 32 percent and 66 percent.
Total operating income was 721 billion dong, slightly down from 725 billion dong in the first six months of last year. Operating expenses of VietBank increased by 17 percent to 450 billion dong, but due to the fall in provision expenses by 84 percent to 21.5 billion dong, it positively impacted the profit target.
At the end of June 2019, VietBank’s total assets increased by 9.5 percent compared to the beginning of the year, reaching 56.603 trillion dong. In particular, customer loans increased by 5.8 billion dong, staying at 37.242 trillion dong. Bad debt ratio accounted for 1.14 percent; deposits of customers increased by 7.3 percent, reaching 42.771 billion dong.
Recently, Hanoi Stock Exchange (HNX) has announced to put VietBank’s shares into Unlisted Public Company Market (UPCoM) market with VBB stock code. The first trading day is July 30, 2019, reference price is 15,000 dong per share. The volume of securities registered for trading is more than 419 million shares, equivalent to 4.19 trillion dong of chartered capital of VietBank.
At Nam A Bank, as of June 30, 2019, total assets reached over 83 trillion dong, fulfilling 97 percent of the plan for 2019. Mobilising from economic organisations, residents and issuing valuable papers was over 66 trillion dong, fulfilling 92 percent of the year plan. Total loans from individuals and economic organisations completed 100 percent of the yearly plan, with total outstanding loans of nearly 60 trillion dong.
Profit before tax reached 442 billion dong, an increase of 36 percent over the same period in 2018 and fulfilling 55 percent of the year plan. The bad debt ratio of Nam A Bank is maintained below three percent as regulated by the State Bank of Vietnam (SBV).
For Ban Viet Bank, Q2/2019 pre-tax profit reached 26 billion dong, accumulated in the first six months reached 48 billion dong. An important contribution to the bank’s business is retail activity with a stable growth in total operating income compared to last year. Loan interest income increased by 26 percent, income from services was three times higher than that of the same period, notably personal lending.
