Vietnam's banking sector has experienced strong profit growth in the third quarter of 2024.
Leading state lender Vietcombank reported a pre-tax profit of over $445 million, marking an 18 percent increase compared to the previous year. Similarly, BIDV posted a pre-tax profit of $270.7 million, reflecting a 10 percent increase year-on-year.
Private banks have also shown remarkable gains. Techcombank reported a pre-tax profit of $950 million, a 33.5 percent increase compared to the previous year. HDBank achieved a pre-tax profit of $527.3 million, marking a remarkable 46.6 percent growth. VPBank recorded a consolidated nine-month pre-tax profit of $577.5 million, soaring 67 percent compared to the previous year. Military Bank (MB) reported a Q3 pre-tax profit of $304.5 million, bringing its nine-month cumulative profit to $864 million.
The State Bank of Vietnam (SBV) has implemented measures to stimulate credit activities, leading to a rebound in credit growth. Total system-wide credit has increased by 10.08 percent compared to the end of 2023. Credit demand is expected to accelerate in the final quarter of the year, driven by a recovering real estate market, increased retail lending, and improved production, exports, public investment, FDI, and consumption.
Despite market volatilities, banks continue to report healthy profits from securities trading. The overall sentiment within the banking sector remains optimistic, with banks confident in achieving their profit targets for the year. The focus on credit growth and efficient management of resources will be crucial in maintaining the positive momentum observed in recent quarters. The interplay between regulatory measures, market demand, and economic recovery will continue to shape the landscape for banks in Vietnam.