While a number of private banks experienced a halt in their profit growth trajectories in 2023, state-owned banks maintained robust double-digit expansion rates.
Among the 27 listed banks, 14 witnessed a decline in profits during the initial nine months compared to the same period in 2022. The sluggish capital absorption by businesses contributed to low credit growth, and private lenders, in particular, faced profit erosion due to high bad debt.
Notably, three state-owned banks—Vietcombank, VietinBank, and BIDV (Bank for Investment and Development of Vietnam)—all reported meeting or surpassing their annual profit targets. Vietcombank retained its position as the sector’s top earner, with profits increasing by 10% to VND40 trillion (US$1.6 billion).
While VietinBank did not disclose the exact figure, it indicated that profits exceeded its plan of VND22.5 trillion, a target already set 10.5% higher than 2022. BIDV’s consolidated pre-tax profits experienced a remarkable 19% surge, reaching VND27.4 trillion.
State-owned banks attributed their profit growth to substantial credit expansion, complemented by stable net interest margins (NIM) and well-managed provisions.