Update on Q2 banking results: Techcombank and ACB report record profits

Double- to triple-digit growth

As of the morning of July 23rd, five banks have released their Q2 financial results, the majority of which reflect profit growth compared to the same period last year. Techcombank reported a notable double-digit profit growth of 39%, whereas LPBank exhibited an impressive triple-digit increase of 244% in Q2.

During an investor meeting for Q2/2024, Asia Commercial Bank (ACB - Code: ACB) announced a pre-tax profit of VND 10,500 billion for the first half of the year, marking a 5% increase year-on-year, and achieving approximately 47.7% of its annual target. In Q2 alone, the bank's profit amounted to VND 5,600 billion, representing a 15.9% rise from the same period last year.

On the afternoon of July 22nd, Vietnam Technological and Commercial Joint Stock Bank (Techcombank - Code: TCB) revealed its H1/2024 financial performance, with cumulative pre-tax profits reaching VND 15,600 billion, an increase of over 30% compared to the same period last year.

Techcombank's profit growth is primarily driven by a significant rise in net interest income (NII), which increased by more than 40% year-on-year, reaching VND 18,000 billion. Specifically, in Q2, NII surged by 50.6% year-on-year to VND 9,500 billion.

In Q2, Techcombank recorded an unprecedented VND 1,000 billion in investment banking service fees. Cumulatively, H1 investment banking service fees totaled VND 1,792 billion, a remarkable 199% increase year-on-year.

Fees from card services amounted to VND 1,022 billion, reflecting a 2.7% increase compared to the same period last year. Meanwhile, fees from insurance services reached VND 384.5 billion, a 32.5% rise year-on-year.

Last week, three other banks also disclosed their Q2 financial results, including LPBank, PGBank, and BaoViet Bank. LPBank is at the forefront in terms of growth rate, with a 205% increase.

Fortune Vietnam Joint Stock Commercial Bank (LPBank - Code: LPB) reported a profit of VND 3,302.5 billion, nearly 3.5 times higher than the same period in 2023. For H1, cumulative profits reached VND 5,918.88 billion, a 142% increase year-on-year.

For 2024, LPBank has set a target pre-tax profit of VND 10,500 billion, representing an increase of nearly 50% from 2023. Consequently, after six months, the bank has accomplished more than 56% of its annual target.

In Q2/2024, LPBank achieved notable results due to a 48.8% increase in net interest income (nearly VND 1,200 billion), amounting to VND 3,645 billion. Additionally, net service income grew by 247.5% (VND 617 billion), reaching VND 866 billion. Furthermore, operating expenses decreased by 15.8% year-on-year, bolstering LPBank's profitability.

Prosperity and Growth Commercial Joint Stock Bank (PGBank - Code: PGB) recorded its first quarter of profit growth since the new shareholder group associated with Thanh Cong Group emerged. Specifically, Q2 pre-tax profits reached VND 151.5 billion, a 0.7% increase from the same period in 2023.

Cumulatively, H1 pre-tax profits reached VND 267.5 billion, reflecting a 6.9% decrease year-on-year. Thus, after six months, the bank has achieved more than 48% of its annual target.

Conversely, Bao Viet Joint Stock Commercial Bank (BaoViet Bank) reported a 1.8% decline in Q2 pre-tax profits year-on-year, decreasing to VND 17.5 billion. For H1, cumulative profits amounted to VND 25.8 billion, a 4.4% increase year-on-year.

According to BaoViet Bank, H1 total operating income reached VND 1,034 billion, marking a 50.4% increase year-on-year. However, profits did not experience significant growth due to relatively high operating and provision expenses.

BaoViet Bank stated that H1 operating expenses increased by 22% year-on-year as the bank continued to focus on investing in information technology projects to drive digital transformation.

Source: vietnambiz

Compiled by Vietnam Business Information