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VietABank has recently announced its financial report for the fourth quarter of 2023 with a consolidated pre-tax profit of VND 336 billion, up 12.8% compared to the fourth quarter of 2022. After deducting corporate income tax, the bank’s net profit reached nearly VND 275 billion, up 14.4%.
In the fourth quarter, VietABank’s main source of income was net interest income, which increased by 56.3%, reaching nearly VND 890 billion. Net income from services increased by 63.9%, reaching VND 26 billion. Notably, the securities investment segment brought in over VND 243 billion, 6.7 times higher than the same period in 2022. Net income from other business activities also increased by 280%, reaching approximately VND 123 billion.
Overall, VietABank’s operating income in the fourth quarter of 2023 reached VND 1,185 billion, more than double the fourth quarter of 2022. At the same time, the bank reduced operating costs by nearly 10%, down to over VND 239 billion. As a result, net income from business operations in the fourth quarter of 2023 increased significantly, reaching nearly VND 946 billion (nearly 3 times higher than the same period in 2022).
Thanks to these results, VietABank’s pre-tax and after-tax profits have grown compared to the fourth quarter of 2022, despite a 21-fold increase in credit provision expenses. However, a sharp decline in the first three quarters of the year resulted in a decrease in the accumulated profit for the whole year of 2023 compared to 2022.
Specifically, VietABank’s pre-tax profit in 2023 reached over VND 928 billion, down 16.2% compared to 2022 and only achieved 73% of the set plan. The main reason still comes from a 11-fold increase in credit provisions compared to 2022, while net income from business operations increased significantly thanks to positive performance of key revenue sources.
With this figure, VietABank is the next bank to report a decrease in profit in 2023. Previously, there were 6 banks reporting a decline in profit including Techcombank, TPBank, PGBank, BVBank, ABBank, and Eximbank.
As of the end of 2023, VietABank’s total assets reached VND 112,207 billion, up 6.7% compared to the beginning of the year. Of which, outstanding loans to customers reached over VND 69,000 billion, an increase of 10.4% compared to the beginning of the year, lower than the average of the economy (13.7% growth). Customer deposits were nearly VND 86,700 billion, an increase of 23.5% compared to the beginning of the year.
At the end of December, VietABank’s domestic bad debt stood at VND 1,100 billion, an increase of nearly 15% compared to the end of 2022 but a decrease compared to VND 1,660 billion at the end of the second quarter and VND 1,130 billion at the end of the third quarter. As a result, the bank’s non-performing loan ratio to total outstanding loans has decreased to 1.59%, nearly the same as the beginning of the year (1.53%).
