Despite the economic downturn, large banks have announced excellent results for 2023 and met all the targets they set for themselves.

BIDV’s total assets as of December 31 were worth VNĐ2.26 quadrillion, the highest in the industry.

Its deposits grew by 16.5 per cent to VNĐ1.89 quadrillion, and loans outstanding by 16.66 per cent to VNĐ1.75 quadrillion.

The bad debts ratio was well under control at 1.1 per cent.

The consolidated pre-tax profit grew by 18.8 per cent to VNĐ27.4 trillion.

Agribank also said its total assets exceeded the VNĐ2 quadrillion mark.

Its deposits exceeded VNĐ1.88 quadrillion and loans outstanding were more than VNĐ1.55 quadrillion.

Pre-tax profits are expected to grow by 14.5-15 per cent and all safety ratios fall within the State Bank of Vietnam (SBV)’s mandatory threshold.

Đỗ Thanh Sơn, deputy general director of VietinBank, said the lender's total assets are worth more than VNĐ2 quadrillion, a 12.5 per cent increase.

Its deposits were up 13.7 per cent at VNĐ1.5 quadrillion, and were in line with credit growth to ensure excellent liquidity ratios.

VietinBank's non-interest income also grew and credit quality improved with a bad debt ratio of only 1.15 per cent and high bad debt provisioning of 160 per cent.

Without disclosing detailed numbers, Sơn said the bank’s pre-tax profits met the target assigned by the SBV and shareholders.

Vietcombank, without announcing profit figures, said it has achieved its targets. It had announced a target of a 15 per cent rise in pre-tax profits, and if it indeed achieved it, its profit should be nearly VNĐ43 trillion.

General director Nguyễn Thanh Tùng said deposits had risen by 12.1 per cent to VNĐ1.41 quadrillion, and loans outstanding by 10.6 per cent to VNĐ1.27 quadrillion.

The bank's bad debts ratio was a mere 0.97 per cent and its bad debt provisioning was 185 per cent.

Vietcombank Securities Company forecast a profit growth of around 10 per cent for the banking industry in 2024, but expected a divergence in the performance, saying large banks would see growth but some small ones would continue to see a fall, even have negative growth.

Lending interest rates would continue to decline as banks have to compete to attract quality customers, which would impact profit margins in 2024, it said.

Industry insiders said though banks achieved their targets in 2023, they continue to face many challenges.

Sơn said unpredictable market developments have been making it difficult for VietinBank to control asset quality, recover bad debts and handle risks.

Business activities are shrinking due to a decrease in demand in key markets such as the US and Europe, and so there is a decline in demand for funds.

Though demand deposits increased in the last few months, they remain at a low level, which is putting pressure on capital costs and banks’ efforts to reduce lending interest rates. — VNS