Negative Deposit Growth, KienlongBank Posts 6% Pre-Tax Profit Rise in Q1

In the first quarter, the bank’s main operations remained almost the same compared to the same period last year, with an income of nearly 613 billion VND. Service operations also remained stable with an interest income of over 113 billion VND.

Foreign exchange trading became KienlongBank’s fastest growing business, generating an interest income of over 11 billion VND, compared to only 575 million VND in the same period last year.

Other operations were the next growth area, with an interest income of nearly 28 billion VND, 2.1 times higher than the same period, thanks to increased recovery of bad debts that had been covered with risk provisions.

Despite a 2% reduction in operating expenses compared to the same period, KienlongBank increased its credit risk provision expenses by 28%, allocating nearly 112 billion VND. Therefore, the bank’s pre-tax profit was nearly 214 billion VND, an increase of 6%.

Compared to its pre-tax profit target of 800 billion VND for the whole year of 2024, KienlongBank has achieved nearly 27% of its goal after the first quarter.

KienlongBank’s total assets as of the end of the first quarter increased slightly by 1% compared to the beginning of the year, to nearly 87.581 billion VND. While loans to customers increased by 3% (53.972 billion VND), customer deposits decreased by 1% (to 56.239 billion VND).

As of March 31, 2024, KienlongBank’s total bad debts were 1.312 billion VND, an increase of 31% compared to the beginning of the year. All three bad debt categories increased. As a result, the bad debt ratio increased from 1.93% at the beginning of the year to 2.46%.

Han Dong