19.10.2021, 13:48

Bank Stocks: What Will Q3 Bank Earnings Show?

According to the State Bank of Vietnam, as of October 7, the banking sector’s credit expanded 7.42 per cent, higher than in the same period last year (5.48 per cent), but remained level compared to late August 2021. The central bank expects credit to resume strong growth in October and in Q4 this year to reach 12 per cent for the whole year.

Saigon-Hanoi Commercial Joint Stock Bank (SHB) counted VND5.055 trillion ($219.8 million) in profit, reaching 82.5 per cent of its 2021 target of VND6.128 trillion ($266.43 million) in the first nine months of 2021. With this, SHB reported return-on-asset (ROA) and return-on-equity (ROE) ratios of 1.5 and 25.6 per cent, respectively, following constant quarterly improvements.

According to a report by Vietnam Investment Review magazine (VIR), during the same period, National Citizen Bank (NCB) saw a 45 per cent jump in net profit from business activities, reaching VND531 billion ($23.1 million).

As a result, the bank reaped more than VND206 billion ($8.96 million) in pre-tax profit, 7.2 times as much as last year. This year, NCB aims to reach around VND1 trillion ($43.5 million) in net profit. However, during the period, the bank has put nearly VND146 billion ($6.35 million) into its provisioning fund, a sharp jump compared to the VND38 billion ($1.65 million) sum from a year ago.

Meanwhile, Tien Phong Bank (TPBank) reached VND4.4 trillion ($191.3 million) in pre-tax profit, up 45 per cent on-year and equal to 75.76 per cent of its full-year plan. The bank’s ROA and ROE stood at 2.01 and 22.59 per cent, respectively.

Kienlongbank reached 87.85 per cent of its full-year consolidated profit target of VND1 trillion in the first nine months.

Also, by the end of Q3, the bank’s total asset value and outstanding loan balance reached 113 and 80.08 per cent of the full-year targets.

Meanwhile, SeABank has also retained its growth momentum, reaching 99.7 per cent of its full-year plan in terms of total asset value, an 18 per cent jump on-year.

Although SeABank has yet to publish its profit figures in Q3 and the first three quarters, it reached 115 per cent of its fully-ear pre-tax profit target of VND2.41 trillion ($104.8 million) in the first half already.

Ho Chi Minh City-based commercial lender HDBank, in the interim, has reached more than 82 per cent of its full-year profit target in the first three quarters, while its outstanding loan balance rose 16.1 per cent on-year. Its ROE ratio reached 24 per cent, a sharp jump compared to the 21.1 per cent in the same period last year.

Based on estimations by SSI Research, a leading domestic financial institution, HDBank counted VND1.7 trillion ($73.9 million) in Q3 pre-tax profit, up 15 per cent on-year.

SSI Research also estimated that for the full-year, HDBank would reap VND7.7 trillion ($334.8 million) in pre-tax profit, compared to its set target of VND7.281 trillion ($316.57 million), a 25 per cent jump on-year. It also estimated Q3 business results for nine listed banks. Accordingly, Techcombank (TCB) is expected to have the highest results with VND5.2 trillion ($226.1 million) in pre-tax profit, up more than 30 per cent on-year.

Meanwhile, Vietcombank’s (VCB) profit remained level at VND5 trillion ($217.4 million) while other leading performers like MB, ACB, and VPB also showed double-digit growth on-year.

Despite its slowing profit growth in Q3, Vietcombank is forecast to be the champion in profitability with VND24.3 trillion ($1.06 billion), closely followed by Techcombank at VND22.3 trillion ($969.57 million) for the full-year.

MB is also forecast to reach VND3.3-3.4 trillion ($143.5-147.83 million) in Q3 profit, a 10-12 per cent jump on-year. For the whole year, SSI Research expects MB to report a 42.2 per cent jump in 2021 profit, as well as a 21 per cent hike in 2022 profit.

According to the State Bank of Vietnam, as of October 7, the banking sector’s credit expanded 7.42 per cent, higher than in the same period last year (5.48 per cent), but remained level compared to late August 2021.

The central bank expects credit to resume strong growth in October and in Q4 this year to reach 12 per cent for the whole year.

By Thuy Vinh @ VIR

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