Banks saw profit spike in Q4

Techcombank's Q4 results saw a 21.6 per cent jump on-year in pre-tax profit to reach $$44.7 million. Its pre-tax profit came to over $966 million for the whole year, higher compared to its full-year projection of $928 million.

LPBank saw its Q4 pre-tax profit soar by 287 per cent to $141.4 million. Pre-tax profit for the whole of 2023 grew by 24 per cent to reach $297 million.

Four of the biggest state lenders, Agribank, Vietcombank, VietinBank and BIDV, also made their 2023 profits public with billion dollar figures.

Vietcombank took pole position at an estimated $1.7 billion in pre-tax profit, surging 10.2 per cent on-year.

BIDV came second, with pre-tax profit of $1.12 billion and consolidated pre-tax profit reaching $1.15 billion, up 19 per cent on-year.

At Agribank, pre-tax profit came to $1.07 billion, meanwhile VietinBank took in more than $1 billion in pre-tax profit, exceeding projections and showing a 20 per cent jump on-year.

As for commercial joint-stock banks, MB Bank posted nearly $1.04 billion in pre-tax profit, up 22 per cent on-year, and its consolidated profit reached $1.1 billion, surging 15 per cent on-year.

Ho Chi Minh City-based VIB reported pre-tax profit of $451.4 million, up slightly by 1 per cent compared to one year ago and equal 88 per cent of the full-year projection.

Seven banks have so far posted profits exceeding the VND10 trillion ($422 million) mark, Vietcombank, BIDV, MB, VietinBank, Agribank, Techcombank, and VIB.

It is likely that four other banks might join that list, ACB, VPBank, HDBank, and SHB.

With such an upbeat profit picture, many banks are considering a cash dividend payment for their shareholders.

For instance, Techcombank envisages proposing a cash dividend payment annually equal to at least 20 per cent of its total profit.

Techcombank CEO Jens Lottner said that the bank had accelerated operational efficiency in Q4 of last year and surpassed all the set targets.

Similarly, at the 2023 annual shareholders meeting in late April, VPBank’s senior executives unveiled that the bank shall provide the shareholders with cash dividend payment in five consecutive years.

Last year, VPBank spent over $337.5 million on dividend payment for shareholders.

Several other banks are also contemplating dividend payments, partly in cash, for their shareholders, such as ACB, HDBank, and MB.

At it its 2023 general shareholder meeting in April, it is reported that ACB plans to deduct $409 million from its profit for dividend payment, with 15 per cent in stock and 10 per cent in cash.

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Banks saw mixed 2023 Ho Chi Minh City-based lender Sacombank became the first bank to make its 2023 business results public last December, with an estimated pre-tax profit of $400.8 million, a 50 per cent jump on-year. Its total deposit volume surpassed $24.2 billion and its outstanding balance touched $20.5 billion.

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