VietinBank announces 20% increase in pre-tax profit and controls bad debt ratio
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In 2023, credit quality will be under control, and the on-balance sheet bad debt rate will be controlled at 1.12%, meeting the National Bank’s targeted goals. Financial Bank Vietnam Bank announced that pre-tax profits increased by 20%, and the bad debt rate was under control Minh Nguyet • {Release Date} In 2023, credit quality was under control, and the on-balance sheet bad debt rate was controlled at 1.12%, achieving the State Bank’s directional goals.
Credit balance increased by 15.6%
On the morning of January 6, Do Thanh Son, deputy general manager of the executive board of the public joint-stock commercial bank, held a meeting in Hanoi to summarize the party’s work, business activities in 2023 and deploy tasks for 2024. Vietnam Commercial Joint Stock Bank (HM:) (VietinBank – Stock Code CTG) said that by 2023, VietinBank has achieved and exceeded its target plan.
Specifically, by the end of 2023, total assets will reach more than 20 billion VND, an increase of 12.5% from the beginning of the year, ranking among the top three in the system. Capital mobilization exceeded VND 15 billion, an increase of 13%, of which demand deposits (CASA) increased by 27%. Among them, credit balance grew strongly, reaching 15.6%, higher than the industry average.
Thanks to positive growth in business activity, the bank’s personal pre-tax profit will increase by 20% in 2023. Among them, service net profit increased by 22%, and foreign exchange trading revenue increased by 19%. Credit quality is under control, with the on-balance sheet bad debt rate controlled at 1.12%, meeting the National Bank’s targeted goal (below 1.8%), and the bad debt coverage rate reaching 160%. During the year, risk disposal revenue reached VND 4.6 trillion, making a positive contribution to profits.
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Du Qingshan spoke at the meeting, summarizing the party’s work and business activities in 2023 and the implementation of tasks in 2024 |
Positive changes in credit structure
Vice President Du Minh Tu commented that in 2023, the Bank of Vietnam played a good leading role and led the market as one of the four major state-owned commercial banks.
The credit structure of Vietnamese banks has undergone positive changes, and credit is directed to production and operation sectors and priority sectors in accordance with government policies (outstanding loans in priority sectors account for 40% of the total outstanding debt of banks). Vietnamese banks continue to prioritize providing growth resources to the retail sector and SMEs, resulting in the average outstanding debt ratio of the retail and SME sectors to total outstanding debt rising from 56.6% in 2021 last year to 62.4% in 2023; Vietnam The bank is also one of the three largest lending banks in the agricultural and rural sectors.
In 2023, the Bank of Vietnam increased its registered capital to more than 53 trillion VND by issuing shares to pay 2020 profit dividends.
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