Overall earnings continued to grow, although several lenders recorded sharp declines.
Eximbank (EIB) reported pre-tax profit of just VND 864 billion (approximately USD 32.8 million) in the first nine months, down 58 per cent year on year. The result meant the lender had achieved only 57 per cent of its full-year profit target after three quarters.
The decline was mainly attributed to weaker revenue from its core business, with customer loans falling by more than 17 per cent from the end of last year. The bank also nearly doubled its risk-provision expenses, from VND 516 billion to VND 997 billion, making this one of the main factors weighing on earnings.
Saigonbank (SGB) had earlier drawn attention after reporting pre-tax profit of nearly VND 66 billion (approximately USD 2.5 million), down 74 per cent year on year. The decline was attributed to lower income from services and foreign exchange activities, as well as high operating costs, particularly provisions for credit risks.
Sacombank (STB) also recorded a decline, with nine-month profit falling more than 46 per cent to VND 5.893 trillion (approximately USD 224 million). The bank had reported a sharp drop in earnings in the previous quarter as well.
Sacombank said the fall reflected its decision to narrow profit margins to reduce lending rates for customers, in line with the Government's and State Bank of Vietnam's policy direction. The lender is undergoing restructuring, amid significant staff cuts and changes in its senior management.
Banking transaction (Photo: Thanh Dong).
Top three unchanged as VPBank overtakes BIDV
Among banks reporting stronger results, the top three remained unchanged.
Vietcombank (VCB) led the sector with pre-tax profit of VND 40.440 trillion (approximately USD 1.54 billion), up 22 per cent year on year. VietinBank (CTG) ranked second with VND 39.557 trillion (approximately USD 1.50 billion), an increase of 34 per cent, while MB (MBB) came third with VND 30.518 trillion (approximately USD 1.16 billion), up 32 per cent.
A notable change this year was VPBank (VPB) moving into fourth place, overtaking state-owned lender BIDV. VPBank posted pre-tax profit of VND 29.911 trillion (approximately USD 1.14 billion) in the first nine months, up 47 per cent. BIDV slipped to fifth with VND 29.483 trillion (approximately USD 1.12 billion), an increase of 25 per cent.
State-owned banks and large private lenders continued to lead in both earnings scale and growth, largely driven by stronger net interest income. However, private banks generally recorded slower growth in this area than the four major state-owned lenders, amid pressure to narrow net interest margins (NIM) and the need for some banks to maintain high deposit rates of more than 9 per cent to ensure liquidity.
Several other lenders also posted double-digit profit growth. Nam A Bank's earnings rose 25 per cent, while Techcombank (TCB) and HDBank (HDB) each grew 24 per cent. TPBank (TPB) reported an increase of more than 23 per cent, and OCB's profit rose 20 per cent.
Among smaller lenders, National Citizen Bank (NCB) recorded one of the strongest increases, with nine-month pre-tax profit reaching VND 1.574 trillion (approximately USD 59.9 million), 2.4 times the figure a year earlier.
BVBank (BVB) reported pre-tax profit of more than VND 825 billion (approximately USD 31.4 million), up 90 per cent year on year. The figure represented 118 per cent of its full-year target of VND 700 billion approved by shareholders.
ABBank (ABB) posted profit of VND 4.301 trillion (approximately USD 164 million) in the first nine months, up 85.5 per cent. BVBank was also reported to have recorded an 89 per cent increase in profit over the same period.