Banks' profit picture in Q3 creates mixed sentiment

LPBank has just announced its third-quarter (Q3) financial statement, with a 133 per cent hike on-year in its pre-tax profit during the period, reaching $120.7 million.

In the first three quarters of 2024, the Hanoi-headquartered lender counted $367.4 million in cumulative pre-tax profit, marking a 139 per cent jump on-year.

Meanwhile, Eximbank saw a 39 per cent hike in its Q3 pre-tax profit at $17.8 million. Its pre-tax profit came to $79.2 million in the first nine months, up 11 per cent on-year.

Bank profits in Q3 create mixed sentiment. Photo: baodautu.vn

State lender BIDV revealed that its net profit before provisions in the first three quarters of this year amounted to $1.5 billion, up 6 per cent on-year.

Another state lender, VietinBank, reported an upbeat performance in the first three quarters.

Its total asset value surged 9.7 per cent compared to the end of 2023, outstanding credit balances inched up 9 per cent, and total deposit volume expanded 7.9 per cent during the period.

The bank's non-performing ratio was kept at 1.4 per cent, but it has yet to unveil its profit figures.

Looking at the Q3 profit picture, analysts at MB Securities JSC (MBS) expect the banking sector to maintain stable growth for the rest of this year, saying the Q3 credit picture was rosier than Q2’s thanks to revived production and business activities.

While big banks counted tens to hundreds of millions of US dollars, several smaller banks saw dwindling business results during the period.

For instance, despite a 36 per cent jump in its Q3 pre-tax profit to touch $3.2 million, PGBank saw a 4.4 per cent drop in its cumulative pre-tax profit in the first nine months, falling to $14.3 million.

The key driver to the bank’s Q3 profit came from its net income, which shot up 49 per cent compared to one year ago to $17.3 million.

As of September 30, the bank’s total asset value stood at $2.57 billion, up 11.4 per cent compared to the start of the year.

Its total deposit volume surged 6.6 per cent to $1.58 billion. During the period, the ratio of its bad debt over total outstanding loan balances surged from 2.85 per cent to 3.19 per cent.

Similarly, SaigonBank announced that in the first three quarters of this year, the bank counted $8.3 million in pre-tax profit, equal to around 55 per cent of its full-year profit target, compared to the $10.3 million it posted one year ago.

SaigonBank posted $6.9 million in pre-tax profit in the first half of this year, meaning that in Q3, its pre-tax profit amounted to $1.4 million, falling by nearly half compared to one year ago.

SaigonBank explained that the deployment of diverse interest rate support programmes had resulted in a 3 per cent drop in its net income, leading to an 18 per cent fall in profit.

Senior financial expert Nguyen Tri Hieu said that the bad debt volume of listed banks didn’t increase in Q3 compared to Q2 as balances of the corporate customer group continued to lead credit growth during the period.

Bad debt volume, however, might go up in the last quarter of the year.

According to an assessment by FiinGroup- a major Hanoi-based financial data and information services provider, by the end of this year, the banking sector’s net profit margin would remain unchanged or go down, and several smaller banks would struggle to achieve their full-year profit targets.

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