Total pre-tax profit of Top 25 largest listed banks decreases 3.1%

Total pre-tax profit of the top 25 largest listed banks in the second quarter of 2023 reached about 61.6 trillion VND (2.6 billion USD), down 3.1% over the same period last year, according to a report of VNDirect Securities Company.
Total pre-tax profit of Top 25 largest listed banks decreases 3.1% ảnh 1At a transaction office of Sacombank in Hanoi. (Photo: VNA)
Hanoi (VNS/VNA) - Total pre-tax profit of the top25 largest listed banks in the second quarter of 2023 reached about 61.6trillion VND (2.6 billion USD), down 3.1% over the same period last year,according to a report of VNDirect Securities Company.

In the report, VNDirect said the ratio of net interest income(NIM) of the banks in the second quarter of 2023 decreased by 0.32 percentagepoints year-on-year to 3.41%.

Nineteen out of 25 banks recorded a high decrease in NIM in thesecond quarter of 2023. In the group of medium and large banks, only Sacombank,VIB and VietinBank maintained a higher NIM compared to the same period lastyear. Specifically, VIB and VietinBank succeeded in taking advantage ofinterbank capital (with a sharp decrease in the second quarter of 2023) whenthe ratio of interbank capital to total capital of VIB and VietinBank increasedby 4% and 4.9%, respectively, over the same period last year.

According to VNDirect, Sacombank's NIM improves strongly in 2023when there is no longer pressure on accrued interest. Meanwhile, NIMs ofVPBank, Techcombank, LPBank and TPBank continue to decline the most as the corporatebond and real estate markets still faced difficulties in liquidity.

The current account savings account (CASA) ratio of the entirebanking industry showed an improvement from 17.6% at the end of the firstquarter of 2023 to 18.2% at the end of the second quarter of 2023 when thedeposit interest rate decreased continuously following the central bank’s fourpolicy interest rate cuts.

VnDirect expects the cost of capital to fall more sharply when thethird and fourth rate cut at the end of the second quarter of 2023 will takefull effect from the second half of 2023 onwards. However, VNDirect’s analystsdo not expect an immediate improvement in banks’ NIM as interest rate cutsremain the top priority to boost economic activity.

For the second half of this year, the analysts expect some bankssuch as MB and VIB, which have high personal loan ratios, low loan todeposit (LDRs) and low foreign currency capital to total capital, willhave more opportunities to improve NIM compared to the remaining banks.

Under the report, VnDirect said at the end of the second quarterof 2023, the credit of the whole banking system increased by 4.7% compared tothe beginning of this year. The rise was lower than the growth rate of 9.4% atthe end of the second quarter of 2022, but significantly increased from 3.17%at the end of May 2023.

In the second quarter of 2023, banks, which had a high lendingratio to the real estate industry, such as Techcombank and HDBank showed slowcredit growth when the real estate market was still in a difficult period.Meanwhile, banks, which had a high ratio of retail lending, achieved impressivecredit growth in the second quarter of 2023. It showed slight signs of recoveryfrom consumer demand.

In the second half of this year, VNDirect expects banks, whichhave a high ratio of retail lending, such as VIB and ACB will have manyopportunities to improve credit growth as Vietnam is gradually moving into theinitial recovery phase. In contrast, banks, which have a high ratio of realestate loans, may find it difficult to extend credit when Circular 06/2023(effective from September 2023) will limit the ability to access capital offirms./.
VNA

See more

Consumers shop at the WinMart Vo Thi Sau supermarket in Hanoi's Hai Ba Trung district. (Photo: VNA)

Hanoi keeps CPI well under control

The CPI for the first quarter of 2025 increased by 2.75% compared to the same period last year, indicating that inflation remains well under control.

Vietnam’s KRX trading system is set to go live on May 5. (Photo: VietnamPlus)

Vietnam to launch KRX trading system on May 5

The KRX system is currently in its final testing phase before full implementation. During this period, securities firms are conducting simulated trading sessions as if on a normal trading day.

Vietnam has proactively reviewed and adjust tariffs, particularly on US imports, as part of efforts towards balanced trade relations. (Illustrative photo - Source: VNA)

Vietnam reviews, adjusts import tariffs to promote trade balance

The Ministry of Finance is now working closely with other agencies to evaluate policy options that support businesses. Possible solutions include market diversification, supply chain optimisation, and leveraging opportunities from Vietnam’s existing free trade agreements.

Illustrative photo (Photo: VNA)

Retail petrol prices up in latest adjustment

Under the new pricing structure, E5 RON92 and RON95-III have increased by 341 VND and 495 VND per litre to a maximum of 20,373 VND (0.79 USD) and 20,919 VND per litre, respectively.

The Lumitel brand is being promoted on walls across Burundi. (Photo: Viettel)

Lumitel – A bright spot in Vietnam-Burundi collaboration

After a decade of operations, Lumitel has become the leading telecommunications provider in Burundi and one of the largest contributors to the Burundian government's budget, providing stable employment for over 60,000 workers and indirectly creating around 100,000 jobs.

Belarusian Deputy Prime Minister Anatoly Sivak speaks at the forum. (Photo: VNA)

Ample room remains for Vietnam - Belarus trade cooperation

To further develop the Vietnam-Belarus economic and trade relationship, it is essential to enhance trade promotion and investment initiatives such as trade fairs, forums, thematic workshops, and trade connections, which serve as an important bridge for businesses from both sides to meet, connect, and seek cooperation opportunities.

The 5th Exhibition of Ho Chi Minh City and Friendship Provinces and Cities in Savannakhet takes place from April 2 to 6. (Photo: VNA)

Vietnam, Laos boost trade at Savannakhet expo

Vice Governor of Savannakhet Saensak Soulisak highlighted the exhibition’s role in expanding trade collaboration, enabling businesses to connect, share experience, and explore investment prospects. He also noted its significance in promoting local products to a wider market.

Visitors at the exhibition (Photo: VNA)

Vietnam Expo 2025 opens, spotlighting digital transformation, innovation

This year’s edition, themed “Step together in a digitised world,” has attracted around 400 businesses from 18 countries and territories, with over 500 booths. Alongside traditional networking, it introduces online business-to-business (B2B) matching, enabling year-round connections.

Prime Minister Pham Minh Chinh speaks at the second meeting of the National Steering Committee for building the private economic sector development project (Photo: VNA)

Private sector encouraged to join major national programmes, projects

It must fully unleash the productive capacity and resources of the country through the private sector; mobilise all private resources for national development; harness the effectiveness of internal forces, including human, natural resources, history, and culture, while effectively combining them with external resources such as capital, technology, human resources, and management experience, he said.

At the annual Vietnam-Cambodia business dialogue in Phnom Penh on April 4 (Photo: VNA)

Annual Vietnam-Cambodia business dialogue held in Cambodia

The annual business dialogue in Cambodia attracted around 150 delegates, including Vietnamese businesses and Vietnamese-origin companies operating in Cambodia across various sectors such as finance, banking, insurance, telecommunications, agriculture, construction, interior design, food services, transportation, logistics, trade, healthcare, and tourism.