Why are high profits but bad debt susceptible?


Why are high profits but bad debt susceptible?

Artwork. (Well: VNA)

Many banks get a profit

In the last nine months, banks have had a profitable profit due to the more narrower political growth, which was not considered by the State State as it was in previous years (15 – 17% in the whole sector). Next To achieve this result, structural change was an important, greater benefit from service assistance, external interest (credit card, insurance, advising …).

At present, the number 1 still of Vietcombank was 11,683 billion dollars, up 47% over the same period last year. Techcombank reached VND7,774 billion, up 60.6% over the same period last year.

Followed by two banks, such as VietinBank, BIDV and VPBank with a profit of 7.596 trillion dong, 7.254 trillion dong and 6.100 trillion dong.

If the "big ones" stand out of size, the private banks were bustling; better than profit growth. VIB tax surplus exceeds 1.720 billion, 2.7 times greater than the same time; TPBank reached nearly 1,614 trillion trunks, which doubled the number. In the same way, Viet Calc Bank, VietBank, Seabank was also a premium bonus of 3 to 4 hours the same time last year.

In non-interest income items, sustained a service of a stable service and contributed significantly to the overall income.

Service activity increased largely due to the profit-making of insurance agencies and payroll services, card services, dc banks. Usually MBBank, in 9 months, net profit from 1.5 times work is larger than the same time when it reaches more than 1.688 billion. In particular, net profit from work was nearly 860 billion, accounting for 51% and more than 3.2 times the same time.

Similarly, the netest TPBank income for the next nine months was VND440 billion, 3.5 times higher than the same time last year. In particular, business and insurance services interest is around 233 billion, 27 times more than the same time …

Many analysts say that the rapid increase in income from services indicates that banking income is availed of. move in a more complex and sustainable way. As these numbers are not so calm due to economic changes, the risk is much lower than credit. In addition, the growth of this section shows how the best sales channels are, and # 39; help banks increase their profit.

According to Nguyen Le Quoc Anh, General Director of Techcombank, its bank and bank policy is to increase its capacity; proportion of income from non-religious activities, to reduce risk from credit. Techcombank's target is to maintain this ratio at 50% and indeed, a proportion of bank credit activity income has dropped from 53% to 48% at the end of Q3 / 08 .

"In the non-credit department, we will focus more on consumer payments (visa, debts, etc.) to meet the day-to-day needs of our clients. In addition, Techcombank also aims has been a life insurance development, "said Nguyen Le Quoc Anh.

Why are high profits but bad debt susceptible?

Bank activities. (Picture: Tran Viet / VNA)

Bad debts grew dramatically

In addition to the clear locations, in the image of banking business profits in the meantime, a "dark point" came into many commercial banks, tends to increase bad debt, where there are similar debts Capital loss (group 5) quickly.

According to BIDV financial statement, debt VND17,041 billion has a bad debt, up 21% from the beginning of 2018, which is an increase of almost 3,000 billion dollars, of their 5 group debt up by 47%. %. For VietinBank, NPLs stood at VND12,127 billion, up VND3,100 billion or 34.6% from the beginning of the year. At the end of the third season, bad debt from Vietcombank had also reached over 4,000 billion …

For stock trading banks, ACB has over 1,264 billion dollars of debt, up 60% over the end of 2017; MBBank increased by 62% compared to the end of 2017; NPLs in OCB raised 65% in nine months to VND1,429 billion, accounting for 2.66% of all bank-free loans.

At Saigonbank, at the end of September, the NPL was banked up to 6.4%, up 3% at the beginning of the year. An explanation of this, Saigonbank said that it was a temporary result of restructuring his / her; bank related to dealing with bad debts according to its & # 39; Plan agreed with Bank State, the policy does not completely hide bad debt.

A bank finance expert said that the main reason for the debts of some of the banks did not rise due to badly unreliable debts. In addition, bad debts are emerging as banks give hand. This is reflected in the new two quarters of the year, many banks have used the credit boundaries.

Creditualization tends to have a good business because 80% of the bank's benefits depend on credit. But on the other hand, this is one of the reasons that cause bad debts.

As described by many of the banks, a serious bad debt was raised by buying bad debts to the former Asset Management of Vietnam Company (VAMC). This is a norm in a banking business, not a matter of concern, although Group 5 debt is likely to increase the loss of capital, but according to regulations banks are at risk of establishing 100%. The accounting and the result of the bank are more active when considering the balance outside of them; balance at the end of the year.

A Chief State of State State said NPLs should look at provision to determine what kind of debt and potential debt could be. Bad debts include bad debts on a & # 39; balance, bad debt away from the opportunity and group 3, group 4, group 5. Bank State requires credit institutions to assess seriously bad debts and to seek to share debt with customers instead Deferred by debt. Therefore, debt 5 debt organizations are likely to increase. However, the movement that arises from serious but wonderful arrears.

However, many comments expressed that the serious bad debt should be a concern. The joint debt debt is over 2%, largely due to the transfer from the banking system to VAMC. Including bad debts held by VAMC and banks, and bad, higher debts, at around 7% of the total unpaid loans.

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