Eximbank Plans 90% Profit Hike By 2024, Only Achieves 13% In Q1

Eximbank’s net interest income was the only growth item in the first quarter, rising 10% year-on-year to VND1,358 billion.

Non-interest income sources all decreased compared to the same period, such as service revenue (-24%), foreign exchange trading revenue (-58%), revenue from trading investment securities (loss of VND24 billion), and revenue from other activities (-46%).

Although operating expenses were reduced by 10% to nearly VND635 billion, Eximbank’s net profit still decreased by 2% to nearly VND943 billion.

During the quarter, the bank increased its risk provision expenses to VND282 billion, three times higher than the same period last year. As a result, Eximbank’s pre-tax profit was only VND661 billion, down 24%.

Compared to the pre-tax profit plan of VND5,180 billion for the whole year of 2024 approved by the General Meeting of Shareholders on the morning of April 26, Eximbank has only achieved nearly 13% of the target. This plan was questioned by shareholders as being quite ambitious, with an increase of 90% compared to the 2023 results.

As of March 31, 2024, Eximbank’s total assets were close to the beginning of the year at VND203,584 billion. Loans to customers increased by 5% to VND147,021 billion, while customer deposits increased by 3% to VND160,659 billion.

Eximbank’s total bad debts as of March 31, 2024, was VND4,203 billion, an increase of 13% compared to the beginning of the year. Notably, sub-standard debt increased by 85%. As a result, the ratio of bad debts to outstanding loans increased from 2.65% at the beginning of the year to 2.86%.

Han Dong