Profits of listed companies gradually revealed

Profits grew strongly

As expected, the securities stocks group continued to have a bumper business quarter, given the positive recovery of the general market in the last two months of 2023 and continuing until now.

The stock market's positive recovery, making transactions more exciting, not only helps the brokerage and margin lending segments of securities companies prosper in the fourth quarter of 2023, but also helps their investment portfolios record large profits or their losses sharply decrease.

Meanwhile, although the banking group still reports large profits, there is a significant difference in growth rate. BIDV's after-tax profit in the fourth quarter of 2023 reached VND 6,083 billion, up 43% over the same period in 2022. LPBank’s profit was 2,628 billion VND, skyrocketing by 293%. Sacombank’s profit was 2,140 billion VND, an increase of 22%. In contrast, Vietcombank's profit was 9,265 billion VND, down 6.7% over the same period in 2022; VIB’s profit was 1,980 billion VND, down 10.7%. Notably, TPBank's profit was 494 billion VND, a sharp decrease of more than 67%.

Diversified credit growth rates, along with the pressure to make provisions for credit risks according to different bad debt developments, are the main factors affecting the profits of banks in the fourth quarter of 2023 in particular, and 2023 in general. Notably, some banks may have proactively set up provisions much larger than the amount needed, in order to increase risk buffers against the challenge of bad debt that may continue to increase in the coming time.

There is a significant differentiation in the group of power generation businesses as some suddenly returned to growth in the fourth quarter of 2023 after a deep decline in the previous three quarters, mainly thanks to expanding profit margins and active mobilization. Quang Ninh Thermal Power’s (UpCom: QTP) profit was 11 times higher than the same period; Bac Ha Hydropower Plant’s (UpCom: BHA) profit was 9.5 times higher than the same period; Pha Lai Thermal Power’s (HOSE: PPC) profit increased 117%, to 150 billion VND; Nhon Trach 2 Thermal Power’s (HOSE:NT2) profit increased by 50%, to 250 billion VND. In contrast, profit of Hua Na Hydropower (HOSE: HNA) decreased by 51%; Se San 4A Hydropower Plant (HOSE: S4A) decreased by 37%; Song Ba (HOSE: SBA) decreased by 30%; even Hai Phong Thermal Power (UpCom: HND) had a net loss of 115 billion VND.

​Some other large enterprises also announced strong growth in profits for the fourth quarter of 2023, such as Hoa Phat (HOSE: HPG) with a profit after tax of VND 2,969 billion, an increase of 249%; Long Hau (HOSE: LHG) recorded a 90% increase in net profit; Industrial Urban Development No. 2 (HOSE: D2D) increased by 69%; Petroleum General Distribution Services JSC (HNX: PSD) increased by 72%; Dong Nai Port (HOSE: PDN) doubled over the same period last year.

Source: thesaigontimes

Compiled by VBI