Vietcombank continues to achieve record profits
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State-owned lender Vietcombank reported record pre-tax profits of VND41.2 trillion (US$1.68 billion) for 2023.
Its previous highest was VND37.4 trillion a year earlier.
It made the bank the most profitable in the industry by a margin of tens of trillions of dong.
Profits before credit risk provisioning were worth VND45.8 trillion, a 2.2% decline.
But halving the provisioning to VND4.5 trillion meant the lender maintained profit growth.
Vietcombank’s bad debts ratio (groups three to five) increased from 0.68% at the beginning of the year to 1% by the end, while loans that require attention (group two debts) surged by 40% to over VND5.55 trillion.
Questions & Answers
Q.How much profit did Vietcombank make in 2023, and how does this compare to the previous year?
How much profit did Vietcombank make in 2023, and how does this compare to the previous year?
Vietcombank achieved record pre-tax profits of VND41.2 trillion in 2023. This figure represents an increase from its previous highest profit of VND37.4 trillion reported a year earlier.
Q.What was the main factor contributing to Vietcombank's profit growth despite a decline in profits before provisioning?
What was the main factor contributing to Vietcombank's profit growth despite a decline in profits before provisioning?
The bank maintained profit growth primarily by halving its credit risk provisioning to VND4.5 trillion. Profits before credit risk provisioning actually saw a 2.2% decline, falling to VND45.8 trillion.
Q.Did Vietcombank's bad debt ratio change during 2023?
Did Vietcombank's bad debt ratio change during 2023?
Yes, Vietcombank's bad debts ratio increased from 0.68% at the beginning of 2023 to 1% by the end of the year. Also, loans requiring attention (group two debts) surged by 40% to over VND5.55 trillion.
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