In the first half, many banks’ profit dropped according to the “scenario”, the bright spot is the strong provisioning increase
admin 23-07-2020, 00:04


In the first half, many banks’ profit dropped according to the “scenario”, the bright spot is the strong provisioning increase

According to Sacombank’s Q2 / 2020 financial report, Sacombank’s total operating income in the second quarter of 2020 reached VND 3,560 billion, an increase of 8% over the same period. Operating expenses plummeted 13.65% to VND 1,973 billion.

But Sacombank has deducted VND 1,147 billion for risk provisions, up 86% over the same period last year. Profit before tax in the period of Sacombank reached VND 440 billion, up 10.13%.

However, in the first 6 months, EBT is 1,428 billion dong, down by 2.2% YoY.

On-June bad debt at June 30 of Sacombank was 6,682 billion dong, up nearly 950 billion dong from the beginning of the year (up nearly 17%). In particular, group 3 debt of Sacombank increased strongly by 185% to VND 851 billion. NPL ratio increased from 1.94% to 2.15%.

Bac A Bank with a profit before tax of VND 175 billion in the second quarter of 2020, down 8.4% from the same period last year.

In the first 6 months, the bank’s profit before tax is 353 billion dong, down by 19% comparing to 436 billion dong achieved in the same period last year and fulfilling 50.4% of the whole year profit plan of 2020.

In 2020, Bac A Bank aims to achieve a pre-tax profit of VND 700 billion, a decrease of 25% compared to the year 2019. The plan to mobilize customer capital reached VND 89,830 billion, an increase of 9% and outstanding loans to customers reached VND 80,220 billion, up 10% compared to the year 2019. NPL ratio is less than 1.5%. Appropriation of VND 340 billion for credit risk provisions.

At the same time, Bac A Bank aims to total assets of VND 115,530 billion, an increase of 7%; and the charter capital of VND 7,085 billion, an increase of 9% compared to 2019.

The main contribution to the profit of the first 6 months of BacABank is still credit activities with interest of 952 billion dong, inching slightly up by 1% over the same period.

The investment securities trading segment also prospered when recording a profit of more than 22 billion dong, compared with a loss of 1 billion dong in the same period.

However, the profit from the service segment decreased by 33.3% to 36 billion dong. Foreign exchange business reported a loss of 14 billion dong while the same period last year was still 7 billion dong.

The bank’s total operating income therefore decreased slightly to VND 1,017 billion. Operating expense for the period was 502 billion dong, up slightly by 5.2%.

The reason for Bac A Bank’s provision expenses increased sharply by 45.6% in the first half of this year to VND 166 billion, making the bank record a sharp decrease in pretax profit in the first 6 months (19%) with same period last year.

As of June 30, the total assets of Bac A Bank reached VND 110.9 trillion, an increase of 2.82% compared to the end of last year. In which, customer loan balance was 74 trillion dong, up by 1.48%. Customer deposits as of the end of June reached nearly 84.3 trillion dong, up by 10.65% compared to the beginning of the year.

Regarding credit quality, by the end of June, the bank has a total of 594 billion dong of bad debt, up 18.6% compared to the beginning of the year. NPL ratio was raised to 0.8% / total loan, compared to 0.69% at the beginning of the year.

SCB also said that SCB’s service activities have grown steadily in recent years, reflecting the restructuring strategy with the goal of reducing the dependence on traditional credit activities.

In the personal financial services provided to customers, SCB made a great impression in the market with the strong growth of Bancassurance activities.

However, with credit activities, SCB was also affected by the impact of Covid 19 epidemic, as shown by the slightly higher percentage of overdue and non-performing loans compared to the beginning of the year, but still within the allowed limits, respectively 1.23% and 0.67%.

But SCB has set aside VND 2,174 billion of credit risk provision expenses, raising the total risk reserve fund to nearly VND 14,000 billion, this is a financial provision buffer, helping the Bank’s business activities be stable in next time.

At SCB, the bank also saw a modest profit of VND 28.9 billion in the first 6 months because the Bank prioritized provisioning credit risk.

Similarly, Kienlongbank’s provision for credit losses in the first 6 months was 3.2 times higher than the same period, recording VND 79 billion, mainly due to the specific provision of loans for a group of customers with collaterals being stocks of another bank under the debt settlement plan approved by the State Bank.

As a result, profit before and after tax in the first 6 months of Kienlongbank decreased by 31% compared to the same period last year, only VND 103 billion and VND 82 billion. The plan set for 2020, Kienlongbank expects to reach a profit before tax of 750 billion dong.

In fact, due to the Covid-19 epidemic, not only small and medium-sized banks, but also large banks such as Vietcombank, profit in the first 6 months decreased by nearly 3%, debt needs to be increased 3 times.

Specifically, Vietcombank has just released its financial statements for the second quarter of 2020 with pre-tax profit of 10,981 billion dong for six months, noticeable debt increase significantly while cheap capital advantage is gradually diminishing.

Source: tinnhanhchungkhoan.vn

TAG: