‘Club’ bank profit tens of trillion dongs is expanding

At the conference with recent banks, Prime Minister Pham Minh Chinh asked the banks to sacrifice a part of profit to lower loan interest rates, support the economy to achieve growth of over 8% this year.

The Prime Minister’s request made in the context of the profitability of most commercial banks last year increased. In the pre -pandemic period – in 2018, the surpassing the profit of VND 10,000 billion could be considered as a phenomenon when only two units achieved, Vietcombank and Techcombank. But after 6 years, if the profit is 10,000 billion, the banks are not sure to reach the top 10 of the industry.

In 2024, the “club” of the bank profit tens of thousands of billion dong with 11 members when welcoming two new names Sacombank and LPBank, but farewell to VIB.

Despite only a growth of about 2% compared to 2023, Vietcombank still maintains the position of the industry’s profitability with the consolidated interest rate of 42,236 billion VND, equivalent to about 1.65 billion USD. However, the gap with the behind group was narrowed in the context of BIDV’s interest, VietinBank grew strong last year.

In particular, thanks to the amplitude increased by more than 27%, VietinBank climbed to the runner -up of the profit runner -up that BIDV held the previous year with the consolidated profit before tax of about 31,758 billion dong. VietinBank said that he achieved positive results thanks to an increase in net profit income by 17.8%, net profit from other activities also increased by more than 45%.

VietinBank credit growth reached 16.8% – higher than the industry’s average. Along with that, analysts assessing the profit of this bank increased sharply thanks to the lower provision costs than expected, the income from the recovery of bad debts has increased sharply.

The remaining two names in the “Big4” banking group – BDIV, Agribank are consolidated before tax more than 31,380 billion and 27,800 billion dong. This result increased by 13.5% and 7.5% compared to 2023.

In the private bank, Military Bank (MB) continued to lead in profit with the consolidated interest of 28,830 billion dong, an increase of about 9.5% compared to the previous year. Last year, MB’s credit growth was in the leading group of 24.7%, about 9.6% higher than the average growth of the whole industry. Vietcombank Securities Company (VCBS) forecasts MB may continue to maintain credit growth of over 20% in 2025 by receiving compulsory OceanBank. At the same time, they also expected to launch profits of the Military Bank this year can exceed 35,800 billion dong.

With an increase of more than 20%, Techcombank chased MB in terms of profits with consolidated profit before tax of about 27,538 billion dong thanks to interest rate growth and effective cost management. ACB also maintained its position in the top of private banks with a profit of over VND 21,000 billion, up nearly 4.7%.

Last year, VPBank also recovered strongly to return to the profit milestone of over VND 20,000 billion. Last year, the consolidated profit before the bank’s bank increased by about 85%, to 20,012 billion dong. VPBank’s credit growth is also in a high group with about 19.4%.

According to VietCap securities, VPBank achieved the above results thanks to the lower operating costs than expected. Along with that, the recovery of FE Credit after the comprehensive restructuring process and the improvement of the bad debt indicators compared to the same period is also better than the expectation also contributed positively.

Sacombank and LPBank for the first time in the banking group of tens of trillion dong for the first time Last year with profit 12,720 and 12,168 billion dong respectively.

According to VCBS, Sacombank is in the final stage of the restructuring process and is expected to enter a strong recovery cycle in the coming years. This unit said that Sacombank would settle all VAMC bonds and complete the processing of all bad debts under the restructuring project in the next 2 years. Sacombank’s profits can continue to increase to more than VND 15,000 billion.

With LPBank, the profit of this bank increased by nearly 73% compared to the previous year. The bank recognized the positive growth after renaming and brand identity since 2023. VietCAP said that LPBank achieved a profit of more than VND 12,000 billion in 2024 thanks to a higher credit growth than expected (20, 20, 4%). At the same time, NIM (net profit ratio from interest) and CIR (income on income) of this bank is also better than the previous plan of the analytical unit.

Business banks must be profitable but in addition to profits, they must bring common benefits to the country, according to Prime Minister Pham Minh Chinh. In fact, the bank is also a group of businesses that contribute greatly to the budget.

Last year, banks also paid tens of trillion dong budgets, of which 10 units had the largest contribution with a total of over 36,000 billion dong.

Along with that, they also reduce loan interest rates to support businesses and people to restore production and business, contributing to maintaining economic growth momentum. After the Yagi storm, the banks had a preferential loan package of trillions to help overcome the consequences and restore production after the historic storm.

According to VCBS’s forecast, in general, the profits of the banks this year will continue to go up, in which the state -owned group may increase 12%, while dynamic private banks can be up to 20%. The company forecasts a credit growth to maintain 14-15% in 2025. When borrowing from home, there are also signs of positive recovery, stable wholesale credit thanks to production and export activities actively, promoting the disbursement of public investment and the real estate market recovering.