AsemconnectVietnam - TPBank reached VND1,765 billion Profit before tax in Q1/2023, up nearly 9% yoy; KienlongBank (KLB) aims to reach VND700 billion pre-tax profit in 2023; VietinBank will increase charter capital to VND60,387 billion or over VND66,000 billion; MBBank (MBB) will increase capital to VND53,683 billion; OCB sets target VND6,000 billion profit before tax and increase capital to VND20,548 billion in 2023.

TPBank (TPB)
A remarkable point in TPBank's financial report for the first quarter of 2023 showed that the Bank's bad debt increased by 84% in 3 months to VND2,496 billion.
Tien Phong Commercial Joint Stock Bank (TPBank) has just announced its financial statements for the first quarter of 2023 with pre-tax profit of VND1,765 billion, an increase of 8.7% over the same period in 2022, profit after tax of VND1,413 billion, up 8.7%. Net interest income decreased by 3.34% y/y, at VND2,737 billion due to a sharp increase in interest expenses, especially paying interest on deposits to customers, while interest income from loans increased slightly. However, net profit from service activities increased by 36% to VND695 billion, net profit from foreign exchange business increased by 370% to VND151 billion.
Total operating income in the first quarter of 2023 reached VND3,660 billion, up 1.2% over the same period. Operating expenses increased by 27.6% to VND1,579 billion. Accordingly, net operating profit (before provisioning) decreased by 12.5%, recorded at VND2,079 billion. Notably, provision expense for credit risk decreased by 58% y/y to VND315 billion.
As of March 31, 2023, TPBank's total assets reached VND343,522 billion, up 4.5% compared to the beginning of the year. Outstanding loans to customers increased by 7.3% to VND172,753 billion. Customer deposits increased by 3.1%, reaching VND200,998 billion. Notably, TPBank's bad debt increased by 84% in 3 months to VND2,496 billion. In which, group 3 debt (substandard debt) increased sharply by 212% to VND1,199 billion. Group 4 debt (doubtful debt) increased 64% to VND764 billion. Group 5 debt (debts likely to lose capital) increased by 6% to VND533 billion. As a result, the ratio of bad debt/total outstanding loans to customers at the end of March jumped to 1.45%, while at the beginning of the year, this figure was only 0.84%.
KienlongBank (KLB)
Kien Long Commercial Joint Stock Bank (KienlongBank, code KLB - UPCoM) has just announced the documents of the 2023 Annual General Meeting of Shareholders (AGM), which will take place online on April 27 in Hanoi.
Regarding the business plan in 2023, KienlongBank sets a target of pre-tax profit of VND700 billion, up from the performance in 2022. Total assets are expected to increase to VND86 trillion. Total mobilized capital is expected to reach VND78,000 billion in 2023. Credit balance increased by 15.39%, reaching VND52,500 billion. NPL ratio is controlled below 3%, ensuring compliance with regulations of the State Bank.
At this meeting, in addition to the reports of the Board of Directors, Board of Management, and Supervisory Board on activities in 2022 and expected operation in 2023, KienlongBank is expected to submit to shareholders for approval a number of contents such as: Selection independent audit firm for the year 2023; Consolidated financial statements for 2022; Report on the end of the term 2018 - 2022 and introduce the list of personnel to elect members of the Board of Directors, members of KienlongBank's Supervisory Board for the term 2023-2027; The plan to increase charter capital in 2023 and some other important submissions.
By the end of 2022, KienlongBank has completed the targets set by the General Meeting of Shareholders. Specifically, KienlongBank's pre-tax profit in 2022 reached nearly VND682 billion, completing 103% of the plan. Total operating income increased by VND294.4 billion, up 12.70% compared to the previous year. Net profit from service activities increased by VND140.4 billion, or 54.92% higher than in 2021.
As of December 31, 2022, KienlongBank's total consolidated assets recorded nearly VND85,760 billion. Total capital mobilization reached VND75,843 billion. Total credit balance reached more than VND45,498 billion, up 16.12% compared to 2021. Bad debt ratio continued to be controlled below 1.18%.
VietinBank
On the morning of April 21, Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank - Code: CTG) held a General Meeting of Shareholders in 2023 with many important contents presented to shareholders. In which, it is noteworthy that the charter capital increased by nearly VND12,330 billion, bringing the total capital to VND60,387 billion or over VND66,000 billion.
Responding to shareholders' questions about the business results of the first quarter of 2023, Mr. Tran Minh Binh, Chairman of the Board of Directors of VietinBank said that by the end of the first quarter, total assets increased by 9%, reaching more than VND1.6 million billion. Credit growth of 4.6% is a great effort while the credit growth of the whole industry is only 2%.
“VietinBank is one of the banks with the best credit growth. The bank's focused customer groups include SME, FDI, and large state-owned enterprises," said Mr. Minh Binh.
Also according to the Chairman of VietinBank, the capital growth is appropriate, increasing not much but ensuring liquidity. Besides, interest rates not only did not increase but also actively decreased. At the same time, adjust the capital structure; increase the proportion of short-term capital with low cost.
Mr. Minh Binh said: "Because the data is not official, we have not announced the details, but in general, VietinBank's Q1 results have met and exceeded the plan, the efficiency increased compared to before."
Also related to the business results of the first quarter of 2023, Mr. Tran Van Tan, member of the Board of Directors of VietinBank added: "As of March 31, 2023, the outstanding credit balance (both loans to customers and corporate bonds) ) increased by 4.6%. In which, loans increased by nearly 28,091 billion dong, up 4.61%; corporate bonds fell 1.43%. VietinBank credit room granted in 2022 is 12.47% and 8.7% for the first period of 2023.
Responding to questions from shareholders about Bancassurance activities, Mr. Nguyen Hoang Dung, Deputy General Director in charge of operations shared, 2022 is a pivotal year in bancassurance activities. For the life segment, which is the first year of cooperation with Manulife, and for the non-life segment, VietinBank Insurance Company (VBI) has consolidated senior personnel as well as adjusted the method of operation.
“At the end of 2022, VietinBank ranked 9th out of 25 in terms of cross-selling insurance among banks. The commission gained from the life segment is VND418 billion, and the non-life segment is VND416 billion, contributing 26% to retail fees, "said Dung.
According to Mr. Dung, in the first quarter alone, the situation was difficult, the total fee collection was 263 billion dong, ranking 5th out of 25 banks, of which the non-life segment was VND60 billion.
In 2023, VietinBank sets a rather challenging growth target for the insurance segment with a target of VND4,080 billion in premium revenue, up 30%, and VND809 billion in insurance premiums from Manulife, of which life through Manulife 51% increase.
“VietinBank identifies bancas as a product for the purpose of serving customers, so we are extremely strict in standardizing business processes and training sales staff, and through the internal control apparatus to control and evaluate whether the consultants comply with ethical standards or not. Accordingly, from 2022 to now, we have not received any negative feedback from customers, press agencies or supervisory agencies in this field, "emphasized Mr. Dung.
Mr. Dung added that the Bank will sell combos, not individual sales, so that customers can consider the benefits of thoroughly understanding the product and the benefits they can achieve.
Reportedly, VietinBank aims to increase its total assets by 5-10% compared to the beginning of the year. Credit balance increased according to the limit assigned by the State Bank (SBV) in each period. Mobilized capital grew in line with credit growth, ensuring liquidity safety indicators. The ratio of bad debt/credit balance is controlled below 1.8%.
Individual pre-tax profits as approved by competent State agencies. Dividend payment ratio and payment structure (cash, shares) comply with the approval of the State Agency. The safety ratios comply with the regulations of the State Bank.
Information at the meeting said that VietinBank's pre-tax profit in 2022 reached VND21,113 billion. Net profit from other activities of the bank increased sharply during the year mainly due to speeding up the progress of debt settlement and recovery.
Notably, in 2022, the bank continued to sharply increase risk provision expenses by VND5,781 billion, up 31.5% over the previous year. As of December 31, 2022, VietinBank's total assets increased by 18.1% to VND1.8 million billion. Loans to customers increased by 12.7% to more than VND1.27 million billion. Customer deposits increased by 7.5% to nearly VND1.25 million billion.
The plan to increase charter capital by nearly VND12,330 billion from the issuance of dividends to pay for shares from the remaining profit in 2021 and the remaining profit accumulated until the end of 2016. In case of not completed, increase charter capital from the remaining profit in 2020, the charter capital increased from VND48,057 billion to VND60,387 billion (up 25.6% compared to pre-issuance). In case the charter capital increase from the remaining profit in 2020 has not been completed, the charter capital will increase from VND53,700 billion to VND66,030 billion, an increase of 22.9% compared to before the issuance.
"Increasing capital is the basis for VietinBank to improve its financial capacity, position and competitiveness, ensuring it is consistent with the bank's operational scale," said VietinBank's leader.
Regarding the distribution of profits in 2022, VietinBank said that with a separate profit after tax of VND16,379 billion, the Bank will deduct 5% for the charter capital supplement fund, 10% for the financial reserve fund and more than VND2,300 billion for bonus and welfare fund. After deducting the compulsory funds, the remaining profit of VND11,521 billion will be used to pay stock dividends as approved by the competent State agency.
The Bank also approved the dismissal and election of an additional member of the Board of Directors who is the representative of foreign shareholders of MUFG; listed the bonds issued to the public in 2023 of VietinBank on the Hanoi Stock Exchange (HNX) after the end of the offering.
MBBank (MBB)
On April 25, Military Commercial Joint Stock Bank (MBBank, code MBB - HOSE) held the 2023 Annual General Meeting of Shareholders to submit to shareholders a business plan in 2023 with the target of a 20% increase in charter capital, reaching VND54,363 billion.
Total assets are expected to increase by 14%, reaching VND830,000 billion. Target credit growth is 15%, equivalent to VND583,600 billion according to the credit room of the State Bank. The bad debt ratio is expected to remain below or equal to 2%. The target profit before tax is VND26,100 billion, an increase of 15% compared to the implementation level in 2022.
Notably, the Bank submitted a plan to sharply increase its charter capital to more than VND53,600 billion. According to the statement of profit distribution plan in 2022, MB will pay dividends in cash and shares this year. MB's after-tax profit in 2022 after deducting funds is VND12,151 billion. Total accumulated after-tax profit (including retained earnings from previous years) is VND13,261 billion.
The bank plans to use VND9,068 billion to pay dividends to shareholders. In which, VND6,801 billion is used to pay dividends in shares, equivalent to 15%; and VND2,266 billion is used to pay cash dividend, equivalent to 5%. Expected, the charter capital of MB after completion is VND53,683 billion.
According to calculations, the 15% share dividend will help MB's charter capital increase by VND6,801 billion, equivalent to the number of issued shares is more than 680 million units, expected to be implemented in 2023.
In addition, the bank also plans to increase its charter capital by VND1,542 billion from continuing to implement the charter capital increase plan approved by the 2022 General Meeting of Shareholders and approved by the State Bank.
Talking to the Securities Investment Newspaper, a senior MB executive said that the additional capital (VND8,343 billion) will mainly be used for investment in capacity building (VND7,088 billion to invest in systems and technology solutions, investment in headquarters in Ho Chi Minh City and key areas...), and at the same time supplementing business investment capital (VND1,255 billion).
The information was approved by the General Meeting of Shareholders at the 2022 annual meeting such as the compulsory transfer of a commercial bank, the establishment of a joint venture bank, shares in Cambodia...
MB also continues to offer private shares and issue shares under the employee selection program as approved by the 2022 General Meeting of Shareholders and approved by the State Bank. The implementation period is from 2023 to the second quarter of 2024.
As MB previously announced on personnel issues, the Board of Directors' Resolution on resigning from the position of Chairman of MB's Board of Directors to Mr. Le Huu Duc, elects Mr. Luu Trung Thai to replace the position of Chairman of MB Chairman of the Board of Directors for the remainder of the 2019-2024 term. At the same time, assigning Mr. Pham Nhu Anh the title of Deputy General Director in charge of the Executive Board.
MB also submitted to shareholders the number of members of the Board of Directors and the dismissal of members of the Board of Directors for the remainder of the 2019-2024 term. Accordingly, MB dismissed the member of the Board of Directors for the term 2019-2024 for Mr. Le Huu Duc, according to personal wishes. The number of members of MB's Board of Directors in the remaining period of the term is 10 members.
Sharing with the Securities Investment Newspaper, VNDirect analyst Tran Thi Thu Thao said that with the pre-tax profit plan in 2023 reaching VND26.1 trillion (up 15% over the same period), higher than the forecast. 4% of VNDirect and seems optimistic in the context of cash flow difficulties at some of MB's major customers, showing the goal of showing MB's management confidence in the bank's prospects in the coming year.
OCB
On the morning of April 28, Orient Commercial Joint Stock Bank (OCB – Stock Code: OCB) held the 2023 annual general meeting of shareholders to approve the business plan for 2023 and a number of other important contents.
In 2023, OCB sets a target of pre-tax profit of VND6,000 billion, and plans to issue nearly 685 million shares to existing shareholders, equivalent to a 50% issuance rate. If successful, the charter capital will be increased from VND13,699 billion to VND20,548 billion.
Growth in core business segments in 2022
Speaking at the opening of the meeting, Mr. Trinh Van Tuan - Chairman of the Board of Directors said that in 2022, the domestic and international financial markets will face many unpredictable variables, issues such as wars and exchange rate pressures, high interest rates, etc. have significantly affected the overall operation of the banking industry in Vietnam.
Despite many challenges, the positive point in OCB's business picture is that core activities still maintain double-digit growth.
With full-year credit growth of 18.5%, higher than the industry average, OCB's net interest income maintained a stable growth rate in 2022, increasing by more than 21% year-on-year and reaching over VND6,900 billion. Income from services also increased by more than 29%, bringing in more than VND1,000 billion, of which net profit from foreign exchange business increased by more than 45% to over VND145 billion.
Other fee income segments of the bank also recorded high growth. Specifically, card net fee collection increased by 138% over the same period, card transaction sales increased by 83% compared to 2021. Income from asset management also increased by 55% from VND94 billion in 2021 to VND145 billion in 2022.
Along with that, the bank always focuses on optimizing the structure of profitable assets, reducing the proportion of low yielding assets. As of December 31, 2022, OCB's total assets reached nearly VND194,000 billion, an increase of 5% over the same period in 2021. Market 1 credit loans accounted for 63% of OCB's total assets, a sharp increase from 56% in 2021. Meanwhile, the proportion of investment in bonds and other assets decreased sharply over the same period. Most of OCB's credit portfolio is loans to customers, accounting for 97.6%, corporate bonds only account for a small part of about 2.4%.
In particular, one of OCB's other bright spots in the past year was that it raised NIM from 3.7% in 2021 to 3.9% in the context of the difference in deposit and lending rates in the market narrow. Although NIM growth is not too large and still lower than previous years, this result shows the best efforts of all leaders and employees of OCB in 2022.
The proportion of retail lending (a segment with high profit margins and potential for cross-selling segments) has recorded a significant change from 36% in 2020 to 40% in 2022. OCB's retail loan balance has increased significantly from VND32,100 billion to VND49,500 billion in the last two years. Especially in 2022, the growth of this segment will reach 30% while the corporate customer segment (CIB) will only increase less than 12%.
The bank also promoted the development of new customers through the digital banking channel OMNI, nearly 80% of the bank's new customers were obtained through the digital channel. By the end of 2022, the number of users increased 1.7 times over the same period, increased 63% compared to 2021 and 3.3 times higher than the beginning of 2020; the total number of transactions increased by more than 83%; Over 90% of transactions are done through digitization.
In the capital mobilization structure in market 1, customer deposits were VND102 trilliong, up 3.4%, accounting for 74%, valuable papers were VND32 trillion, up 41.5%, accounting for 23%, capital funding and investment trust is VND3.2 trillion. The structure of customer deposits has shifted towards a sustainable direction, with a sharp increase in deposits from individual customers.
The loan-to-deposit ratio (LDR) is always kept at a conservative level (75.6% at the end of 2022) based on reasonable calculations to optimize costs, cash flow, and balance sources. The ratio of short-term capital for medium and long-term loans has always remained at a safe level, complying with the regulations of the State Bank.
The Bank always maintains a high amount of liquid assets, to ensure immediate liquidity requirements, reflected in the liquidity reserve ratio much higher than the requirements of the State Bank. Therefore, OCB can stand firm against market fluctuations, especially in the fourth quarter of 2022.
In 2023, the pre-tax profit target is VND6,000 billion
Regarding the business orientation in 2023, OCB aims to continue to focus on developing the scale and efficiency of operations, focusing on promoting retail activities according to the 5-year strategy of 2021-2025. Total assets are expected to increase by 25% by the end of the year to VND242,152 billion. Total market mobilization 1 increased 26% to VND173,087 billion; Market 1 debt balance increased by about 20% to VND147,330 billion. The bank also said that the credit balance will be adjusted according to the growth limit approved by the State Bank. OCB has set a target of pre-tax profit of VND6,000 billion, up 37% compared to 2022. The bad debt ratio is under 3%.
Answering the grassroots shareholders to achieve the goal set out this year when the plan was not completed last year, Mr. Nguyen Dinh Tung - General Director of OCB admitted that the 2022 results were not achieved, in the process of development reform. OCB from 2012 to now, the last year 2022 was the only year that did not meet the plan.
But this year, OCB's Board of Management has analyzed and evaluated the development of the 2023 plan. In 2022, the plan is set at the beginning of the year in an optimistic context, the economy has many positive signals after 2 years of COVID, however, during the year, there were many unexpected and unexpected developments. In 2023, set a more modest plan than the 2022 plan.
"The 2023 plan is highly prudent and based on reality. Core business, credit growth of 21% in 2022. Government bond business in 2021 will collect 30%, In 2022, accounting for 25% of total income. VND1,500 billion is the expected income above the government bond business," said Mr. Tung.
When interbank interest rates increased, the government bond business was negative, so the main activity of credit in 2022 was still profitable, and services also achieved the highest growth rate ever. now. This is also the foundation for the development of the 2023 plan. Therefore, the profit growth rate of 2023, according to Mr. Tung, is based on the main activities of credit business and services.
Ending the first quarter of 2023 with many positive points in the context of the volatile global economy. Accordingly, profit before tax and total assets both recorded positive growth, especially efforts to strengthen risk management and focus on digitization. In the first quarter of 2023, OCB recorded a pre-tax profit of VND983 billion, up 18% over the same period.
Total net revenue reached VND2,090 billion, of which net interest income reached VND1,751 billion, accounting for 84% of the total net operating income structure of the bank. NIM remained effective at 3.9%, up year-on-year.
Operating expenses were strictly controlled in the context that total net revenue continued to increase over the same period with an operating expense to revenue ratio of 37%.
By the end of the first quarter of 2023, OCB's total assets continued to grow positively when reaching more than VND199,141 billion, up 6.1% over the same period. In addition, in the context of strong fluctuations in interest rates, the Bank's credit and deposit activities continued to grow.
In which, customer lending reached nearly VND121,914 billion, up 15% over the same period last year, total mobilization in market 1 reached VND143,752 billion, up 15% over the same period. Particularly, customer deposits recorded positive results when growing 7.2% over the same period, equivalent to VND105,564 billion.
The capital adequacy ratio (CAR), credit balance to mobilized capital (LDR) and bad debt ratio are controlled at a reasonable level, ensuring compliance with regulations of the State Bank.
Increase charter capital 2023 to VND20,548 billion
With the plan to grow the business scale continuously every year, the increase of charter capital is necessary to help the Bank improve its financial capacity, ensure the capital adequacy ratio (CAR) according to the regulations of the authorities, specifically: Increasing scale, increasing competitiveness and meeting the plan to expand the trading network; Continue to invest in technology systems to serve the banking modernization, to support the development of new products, to increase the customer service experience; Promote credit activities and capital business more effectively.
Therefore, OCB has VND7,037 billion of residual profit, of which VND2,943 billion is retained profit in 2022 and VND4,094 billion is retained profit of previous years. To serve business activities, OCB proposes to use retained earnings and other sources of equity to increase charter capital.
Specifically, the bank wants to issue nearly 685 million shares to existing shareholders, equivalent to a rate of 50%. If successful, the bank's charter capital will increase from VND13,699 billion to VND20,548 billion. The specific issuance time is decided by the Board of Directors after being approved by the competent authority.
With the proceeds from the capital increase, the bank will use VND6,176 billion to supplement capital for business, investment and lending; VND672 billion for shopping and building facilities. After increasing charter capital, Aozora Bank, Ltd. is still the major shareholder holding 15% of the Bank's capital.
Elect 2 additional members of the Board of Directors for the term 2020 - 2025
At the 2020 Annual General Meeting of Shareholders, the number of members of the OCB Board of Directors is 8 members. Currently, the Board of Directors is missing 1 member. To match the size and needs of governance, the Board of Directors submitted to shareholders for approval to change the number of members of the Board of Directors for the term 2020-2025 from 8 to 9 members.
Therefore, the Board of Directors will elect additional personnel to the Board of Directors with the candidates being Mr. Kato Shin and Mr. Nguyen Dinh Tung.
Besides, in this meeting, OCB's Board of Directors also submitted to shareholders to approve the change of the location of the bank's head office. Currently, the head office is located at 41 (ground floor, mezzanine, 1st and 2nd floors of the building) and 45 Le Duan, Ben Nghe Ward, District 1, Ho Chi Minh City.
To meet the needs of development and expansion of the headquarters area, the OCB Board of Directors found that The Hallmark building, Lot 1-13, Thu Thiem New Urban Area, Thu Duc City, Ho Chi Minh City meets the requirements of OCB, with the location of the building located in the central district area, which is being planned to become the new and largest administrative, commercial and service center of Ho Chi Minh City.
N.Nga
Source: VITIC/Tinnhanhchungkhoan