Vietcombank announces 2023 profit, bank transfers weak

In 2023, Vietcombank’s (HM:) credit quality will be well controlled, with a Group 2 bad debt rate of 0.42%. Finance & Banking Vietcombank announces 2023 profit, receives weak bank transfers Tram Anh • {Published Date} In 2023, Vietcombank’s credit quality control was good, with a Group 2 bad debt rate of 0.42%.

2023: Credit growth is 10.6%, and profits reach the set target

On the morning of January 6, at a meeting to summarize the business activities of 2023 and deploy the work tasks of Viet Thong Bank in 2024, President Nguyen Thanh Dong of Viet Thong Bank said that in 2023, Viet Thong Bank successfully completed its annual plan goals.

>> Vietnam Commercial Bank re-appoints Nam Dinh branch president

Specifically, capital mobilization in Market 1 reached VND 1.41 million, an increase of 12.1% compared to the end of 2022, and outstanding credit debt reached VND 1.27 million, an increase of 10.6% compared to the end of 2022.

In particular, bank credit quality control is good, with a bad debt rate of 0.42% for Group 2; the bad debt rate is about 0.97%, which is the lowest level in the system. The balance of risk reserves according to Notice No. 11/2021/TT-NHNN is VND34,338 billion, and the bad debt reserve ratio in Notice No. 11 reaches 185%.

Vietcombank leaders said that in 2023, the bank will complete the profit distribution plan, and the ROAA and ROAE indexes will remain high, at 1.78% and 21.68% respectively.

Viet Tong Bank’s 2023 shareholders’ meeting approved the target of pre-tax profit growth of 15%, with a minimum of nearly 43 trillion VND. The financial report for the third quarter of 2023 shows that in the first nine months of this year, the bank achieved a cumulative profit of VND29.55 trillion. Currently, Vietcombank is the profit champion in the entire banking industry.

Increase profit target by 10% in 2024, implement plan to accept transfers from weak banks

The bank also plans to increase profits by 10% in 2024 and will vigorously implement plans to receive forced transfers from weak credit institutions.

Starting from the beginning of this year, Vietcombank has reduced the interest rate for all customers with existing outstanding Vietnamese Dong (HM:) loans by 0.5%/year.

The leader of Vietnam’s central bank said that the world economic outlook in 2024 is expected to be a “soft landing” as the risk of deceleration still overwhelms growth momentum. Businesses remain concerned about expanding production and operations as existing interest rate risks and cadastral tensions continue to erode international trade. Protectionist barriers that limit the import and export of essential goods also distort international trade.

Against the background of the above-mentioned domestic and international situations, Vietnam Commercial Bank has set a conservative growth target for 2024. Accordingly, total assets must grow by at least 8%, credit must grow by at least 12%, the bad debt rate must be less than 1.5% within the limits set by the National Bank, and pre-tax profits must grow by at least 10%.

It is worth noting that by 2024, Vietcombank aims to complete its plan to receive forced transfers from weaker credit institutions.

Mr. Nguyen Thanh Tung said that when the relevant plans are approved by the competent authorities, the bank will actively take measures.

Previously, in April 2023, Vietcombank also revealed the news that a weaker bank was forced to transfer. As a result, Vietcombank will be involved in restructuring a weaker bank, whose identity has not yet been revealed.

The four weaker banks currently undergoing restructuring include DongABank, and the three VND banks include: CB, OceanBank, and GPBank. At the end of 2022, Standard Chartered Bank will also become a bank under special supervision.

>> If you have little money, how can you deposit it in a bank to get high interest rates?