AsemconnectVietnam - Vietnam Export-Import Commercial Joint Stock Bank (Eximbank, code EIB) announced its financial report for the second quarter of 2023 with negative results when many activities decreased.

Accordingly, in the second quarter of 2023, main activities decreased by 23% over the same period, earning only VND1,094 billion in net interest income.
The reason for the decline as explained by Eximbank was that the Bank had to reduce lending interest rates to support customers according to the Government's policy. In addition, the high interest rate on capital rising leads to an increase in the cost of capital. At the same time, the profit from buying and selling investment securities decreased by 95%, to more than 4 billion dong due to unfavorable business conditions for valuable papers such as government bonds and bonds of credit institutions.
Eximbank's net profit from other activities in this quarter also decreased by 73%, to nearly VND74 billion, mainly due to the slow implementation of debt collection and liquidity and the transaction situation in the real estate market slower than the same period.
In addition, Eximbank's profit from service activities in the second quarter of 2023 was approximately the same period at VND124 billion. Profit from foreign exchange trading is a rare source of income that grew in the quarter when it increased by 55% to nearly VND185 billion.
Eximbank's operating expenses this quarter decreased by 4% to nearly VND769 billion, mainly due to a reduction in staff costs. However, because most of the business segments went backwards compared to the same period, the net profit from business activities of Eximbank in the second quarter of 2023 decreased by 42%, to just over VND712 billion.
In the second quarter of 2023, Eximbank deducted nearly VND178 billion for risk provision, up 37% over the same period. According to Eximbank, individual and corporate customers faced difficulties, leading to the loan balance shifting to a higher debt group, including a part of CIC's debt group being transferred from other credit institutions.
As a result, Eximbank's pre-tax profit in the second quarter was only nearly VND535 billion, down 51% over the same period.
In the first 6 months of 2023, although the provision was reduced by 6% to only VND270 billion, because net profit from business activities was only VND1,675 billion (down 24%), Eximbank only achieved pre-tax profit VND1,405 billion, down 26.1% over the same period last year, just completed 28% of the year plan (VND5,000 billion).
As of June 30, 2023, Eximbank's total assets reached VND190,301 billion, up 2.8% compared to the end of last year, of which customer loans increased modestly at only 1%. This is also part of the reason why the bank's net interest income declined in the first half of the year.
Eximbank's customer deposit balance reached VND154,278 billion, an increase of 3.8% compared to the end of last year and equal to 117% of the loan balance.
In terms of asset quality, the bank's bad debt balance increased sharply by 54.5% to VND3,625 billion, bringing the bad debt ratio from 1.8% at the end of last year to 2.75% at the end of the second quarter of 2023.
N.Nga
Source: VITIC/Tinnhanhchungkhoan