Multiple banks recorded prosperous business results in the first nine months of 2021 despite the negative impacts caused by the COVID-19 pandemic, with some even exceeding business targets for the whole year.

Viet A Commercial Joint Stock Bank (VietABank) reported 9-month pre-tax profit of VND522 billion (US$22.9 million), up three times over the same period last year. The profit from securities trading increased sharply, up 4.7 times over the same period in 2020 with VND107.6 billion.

The total accumulated banking income in nine months still decreased by 6.3 per cent year-on-year, while operating expenses increased by 5.1 per cent. As a result, the bank's net profit before provision expenses decreased by 12.3 per cent compared to the same period in 2020, reaching only VND747 billion.

VietABank sharply reduced provision expenses in the past nine months, from VND864 billion in the same period last year to VND225 billion by the end of the third quarter of 2021. The sharp decrease in provision expenses was partly because the bank had settled all bonds at the Viet Nam Asset Management Company (VAMC) since August, thus reducing the pressure on provisioning for VAMC bonds. In the third quarter of 2021 alone, the risk provision was only VND19 billion, while in the third quarter of 2020, this number reached VND476.5 billion.

Bac A Commercial Joint Stock Bank (BacABank) announced 9-month pre-tax profit of VND702 billion, up 34 per cent year-on-year, mainly thanks to the provisioning for risks which decreased by 70 per cent over the same period last year.

In the third quarter, BacABank recorded profit of VND94 billion from securities activities, nearly 12 times higher than the level of the same period in 2020.

Petrolimex Group Commercial Joint Stock Bank (PG Bank) recorded pre-tax of VND272 billion in nine months, up 107 per cent over the same period last year, completing 88 per cent of the yearly plan. Provision expense dropped sharply by 64 per cent year-on-year, to VND93 billion.

However, bad debt increased by 13 per cent compared to the beginning of the year to VND708 billion, bringing the ratio of bad debt to total outstanding loans from 2.44 per cent to 2.75 per cent.

Lien Viet Post Bank Joint Stock Commercial Bank (LienVietPostBank)’s total operating income reached VND7.01 trillion in nine months of 2021 and increased 35 per cent year-on-year, of which net interest income increased by 33.8 per cent, profit from service activities increased by 52.9 per cent and profit from forex trading increased by 86 per cent.

Although LienVietPostBank's risk provisioning increased by 2.76 times over the same period last year, the bank's pre-tax profit still reached VND2.8 trillion, up 61 per cent over the same period in 2020 and nearing the target of VND3.2 trillion for the this year.

Orient Commercial Joint Stock Bank (OCB) recorded 9-month pre-tax profit rising by one and a half times against last year, reaching VND3.77 trillion, reaching 68 per cent of the year’s plan.

OCB said that the bank focused on the strategy of promoting asset quality rather than scale, taking advantage of quality long-term capital with lower capital costs from investment trusts and issuing valuable papers.

Total net revenue of OCB in the third quarter of 2021 increased by 23.3 per cent against last year, reaching VND6.24 trillion. The bad debt ratio decreased from 2.15 per cent from last year to 1.51 per cent at the end of the third quarter.

Viet Nam Technological and Commercial Joint Stock Bank (Techcombank) announced 9-month profit of VND17.1 trillion, up 60 per cent compared to the same period last year, completing 86 per cent of the whole year’s plan. In third quarter alone, Techcombank's pre-tax profit reached VND5.56 trillion, up 40 per cent over the same period last year.

The bank also has the highest current account savings account (CASA) in the banking industry with 49 per cent at the end of the third quarter of 2021, up from 46.1 per cent in the previous quarter. CASA at Techcombank has increased by 59.1 per cent in the past 12 months and reached VND155 trillion; in which deposits of individual and corporate customers increased by 27 per cent and 114.8 per cent respectively over the same period last year.

Beyond the annual plan

Setting a target of VND135 billion in pre-tax profit for this year, Saigon Industrial and Commercial Joint Stock Bank (Saigonbank) has just announced its 9-month pre-tax profit of VND194 billion, up by 9.6 per cent over the same period in 2020, exceeding the yearly plan by 44 per cent.

The latest report of Viet Capital Bank also recorded a 9-month pre-tax profit of VND385 billion, up 181 per cent year-on-year, higher than the yearly target of VND290 billion.

Maritime Commercial Joint Stock Bank (MSB) reported VND4.1 trillion of pre-tax profit in nine months, which has far exceeded the yearly plan of VND3.2 trillion. Compared to the same period of 2020, MSB's profit increased more than 2.5 times.

Southeast Asia Commercial Joint Stock Bank (SeABank) announced 9-month pre-tax profit of VND2.53 trillion, up 123 per cent over the same period in 2020 and exceeding 5 per cent of the yearly plan. Particularly in the third quarter, the bank's pre-tax profit was VND974 billion, up 110 per cent over the same period last year. VNS