Up to now, 10 joint stock commercial banks have released their financial statements for the third quarter of 2019. Remarkably, the results show a positive growth in both net interest income and profit before tax. Even, many banks also have outstanding growth in the past quarter.
Prominent among this group is Saigon Bank for Industry and Trade (Saigonbank) when the bank reported profit before tax of the third quarter of 2019 reached 132.4 billion dong, 12.7 times higher than the profit achieved in the same period of last year.
This result was mainly contributed by the net interest income of 210.2 billion dong, up 36 percent and provision for credit losses only accounted for 10.7 billion dong, down sharply from 80.7 billion dong in the third quarter of 2018.
The large growth in profit in the third quarter also points to An Binh Commercial Joint Stock Bank (ABBank), VietNam Asia Commercial Joint Stock Bank (Viet A Bank) and National Citizen Commercial Joint Stock Bank (NCB) with growth of of 193%,153 percent and 107 percent respectively.
For ABBank, the profit before tax in the third quarter of 2019 reached 338 billion dong, though not as high as the preceding quarter, but compared to the same period last year, this interest rate soared.
The biggest contribution to the result of this period was not from net interest income or service activities, but thanks to the bank’s gain in foreign exchange and investment securities trading. Net profit from these two activities was 71.2 billion dong and 195.6 billion dong, three times and 35 times higher compared to Q3/2018, respectively.
Besides, unlike the loss of more than 3.5 billion dong from other activities, this segment brought over 45 billion dong of profit to ABBank in the period, helping the bank’s profit increase strongly despite the increase in credit risk provisions from 90.2 billion dong to 143.2 billion dong in Q3.
Meanwhile, for VietABank, the net interest income and non-interest income decreased, which led to the fall in the net profit in the third quarter of 2019 to195.8 billion dong, down 12 percent compared to the same period. However, thanks to the provision reduction for credit losses from 195.4 billion to 125.9 billion dong in the period, the bank still recorded profit before tax of 69.8 billion dong, up 152%.
NCB is the lowest profitable bank among the three banks with pre-tax profit of only 3.1 billion dong. However, compared to the profit of only 1.5 billion dong achieved in the same period last year, this rate is relatively high.
