Vietcombank reports record profits despite income declines

For the second quarter of 2024, Vietcombank's consolidated pre-tax profit reached over VND 10.110 billion, a 9 per centincrease compared to the same period last year.

Over the first six months of 2024, the bank's pre-tax profit totaled nearly VND 20.835 billion, up 1.6 per cent year-on-year. This performance positions Vietcombank as the top performer in the sector for both second quarter and the first half of the year, achieving a record high for mid-year profits.

Despite these results, Vietcombank experienced declines across most major revenue categories in the first half of 2024. Net interest income decreased by 0.8 per cent to approximately VND 28 trillion.

Net profit from service activities fell by 4.5 per cent to VND 2.941 billion while from foreign exchange trading dropped by 26 per cent to VND 2.359 billion.

Additionally, net profits from securities trading and other business activities fell sharply by 76 per and 60 per cent, respectively, to VND 21.5 billion and VND 532 billion.

Total operating income for Vietcombank in the first half of the year decreased by 5.4 per cent year-on-year to over VND 34 trillion.

The bank's profit growth was largely driven by a reduction in risk provisioning expenses. In second quarter, provisioning costs for credit risk were approximately VND 1.5 trillion, a 40 per cent decrease from the previous year. For the first half of 2024, provisioning costs were down nearly 34 per cent year-on-year, totaling over VND 3 trillion.

As of June 30, 2024, Vietcombank's total assets stood at over VND 1.9 trillion, a 3.6 per cent increase from the end of 2023. Customer loans amounted to nearly VND 1.37 trillion, reflecting a 7.8 per cent increase.

The bank's non-performing loans rose to VND 16.446 billion, a 32 per cent increase from the end of the previous year.