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PVcomBank witnesses a nearly 60% surge in profits for the first half of 2024
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In the second quarter of 2024, the bank’s core business witnessed robust growth. Due to a significant reduction in deposit interest expenses, PVcomBank earned nearly VND 763 billion in net interest income, a 4.9-fold increase compared to the same period last year.
Concurrently, the bank bolstered its non-interest income streams. Net income from services reached nearly VND 66 billion, a 2% increase year-over-year, attributable to reduced payment, trust, and agency fees.
The bank restructured its income-generating assets and adjusted its investment portfolio of both stocks and bonds, resulting in a substantial 69% increase in net income from securities trading, totaling nearly VND 98 billion.
Notably, enhanced recovery of previously written-off loans contributed to a fourfold increase in other income compared to the same period, amounting to over VND 92 billion.
Consequently, PVcomBank’s net profit from business operations exceeded VND 554 billion, driven by strengthened core business activities and streamlined operating expenses.
Despite impressive business growth in the second quarter, the bank proactively bolstered its precautionary reserves in anticipation of potential economic uncertainties. This led to a credit risk provision of over VND 794 billion, impacting quarterly profits. However, this strategic move will empower the bank with greater risk management capabilities and ensure smoother operations in the upcoming periods.
Coupled with the favorable performance in the first quarter, PVcomBank recorded a pre-tax profit of nearly VND 70 billion for the first six months of 2024, reflecting a remarkable 58% year-over-year increase. As a result, the bank has already accomplished over 64% of its annual profit target within just two quarters.
During this period, despite the economy’s weak capital absorption, PVcomBank remained committed to providing customers and businesses with improved access to capital, thereby stimulating economic growth. As of June 30, 2024, the bank’s credit balance witnessed a nearly 6% year-to-date increase, reaching VND 104,836 billion.
The bank’s proactive debt management and recovery efforts led to a noticeable improvement in loan quality by the end of the second quarter, evident in the significant decline in loans classified under Groups 4 and 5.
To optimize costs, PVcomBank strategically balanced its capital sources, resulting in a slight decrease in its primary market funds to VND 175,583 billion.
