AsemconnectVietnam - In the first 6 months of 2023, SeABank (SBB) achieved more than VND2,016 billion profit; ACB achieves VND10,000 billion profit; Orient Bank (OCB) earned VND2,560 billion pre-tax profit; SHB reached VND6,073 billion accumulated pre-tax profit; KienlongBank reached VND321.4 billion in consolidated profit after tax; HDBank focuses on a sustainable development strategy, steadfastly pursuing business goals in 2023.

SeABank (SBB)
By the end of the first 6 months of 2023, the total assets of Southeast Asia Commercial Joint Stock Bank (SeABank, stock code: SSB) reached more than VND245,206 billion, an increase of 5.96% compared to December 31, 2022. Profit before tax reached more than VND2,016 billion.
Along with maintaining stable business operations, SeABank also increased its charter capital to VND24,537 billion and implemented many reductions in loan interest rates to support production and business, contributing to economic recovery.
In the business plan for 2023, SeABank remains steadfast with the goal of sustainable growth, continues to focus resources on innovation and digital transformation activities to improve business performance and increase experience of customers with a variety of products and services, flexibility as well as optimization of operating costs.
By the end of June 30, 2023, SeABank achieved pre-tax profit of VND2,016 billion; Total assets are more than VND245,206 billion, an increase of 5.96% and Total outstanding loans are more than VND161,889 billion, an increase of 5.15% compared to December 31, 2022. NPL ratio remained low at 1.73% due to the Bank's good control of credit risk in the context of economic difficulties.
SeABank's total revenue reached nearly VND12,109 billion, up 18% over the same period, of which revenue from traditional business activities grew steadily over the same period; Fee revenue reached VND466 billion, of which fee revenue in the second quarter of 2023 grew 2 times compared to the first quarter of 2023 and tends to increase in the late 2023 period.
In terms of mobilization, SeABank's total deposits from customers in 6 months reached VND144,788 billion, up 5.64%. In particular, having passed the rigorous appraisal and evaluation process from international organizations, SeABank was able to receive additional foreign capital, until June 30, 2023 the total mobilized capital from international organizations reached nearly VND11,772 billion, up 26.15% compared to the end of 2022. This mobilized capital makes an important contribution to serving SeABank's business activities in the trend of diversification and globalization of capital sources.
In addition, in order to accompany customers to overcome difficulties, SeABank has made many adjustments to reduce lending interest rates to support production and business activities, contributing to economic recovery for domestic enterprises.
In June 2023, SeABank successfully issued shares to pay dividends and bonus shares with a total ratio of nearly 20.3% to increase charter capital to VND24,537 billion. Besides, SeABank - stock code SSB also had stable growth in the first 6 months of the year, bringing the bank's capitalization to over 3 billion USD and was approved by the Ho Chi Minh City Stock Exchange. Ho Chi Minh City Stock Exchange (HOSE) selected to include in the basket VN30-Index - the index representing the group of 30 stocks with the highest market capitalization and liquidity listed on HOSE. Previously, SSB was also added by MSCI (Morgan Stanley Capital Index) to the portfolio of marginal market stocks from March 1, 2023.
Along with maintaining business operations, SeABank also implemented many meaningful social security activities such as: supporting the cost of building houses of gratitude for the poor in Ha Tinh and Dien Bien with a total value of VND 30 billion; Organize the annual SeABank Run For The Future (SeARun 2023) to raise funds to award 10 scholarships to Nurture Dreams and plant 25,000 trees, totaling VND1.5 billion; Implement annual charity activities Spring of Love, SeABankers For Children nationwide.
ACB
Although the economy in the first 6 months of 2023 is still facing many challenges, both domestic production and import and export activities are affected, ACB still adheres to its business goals when completing 50% of the profit plan of the whole year.
In the first 6 months of the year, ACB has lent more than VND20 trillion at preferential interest rates up to 3% compared to the interest rate table. As of the end of June, ACB's credit scale reached more than VND434 trillion, up 4.9% compared to the beginning of the year. Particularly in the second quarter of 2023, the growth rate has improved strongly, increasing by 5.5%, equivalent to nearly VND23 trillion compared to the first quarter of 2023.
With high interest rates from the end of 2022, putting pressure on customers' ability to repay debts, it has contributed to the high rate of bad debt in banks. ACB's bad debt was also affected by the general situation of the market, when it increased to 1.07% but still one of the banks with the lowest bad debt ratio in the market.
Deposit scale recorded a better growth than the whole industry, with the scale by the end of June reaching VND432 trillion, up 4.5% compared to the beginning of the year. In which, the CASA ratio, although still low compared to the beginning of the year, has shown positive signs when increasing again after a continuous decrease from the second quarter of 2022. The CASA rate has increased to 20.9% from 19.8% at the end of the first quarter of 2023.
ACB strives to stick to the set business goals when completing 50% of the year's profit plan, reaching 10 trillion dong. A big driver of ACB's profit growth came from non-interest income, which increased by 28% over the same period last year. The contribution of non-interest income to revenue continuously increased from 19% to 22%, reducing pressure on the interest income segment. In which, card services, foreign currency trading and investment activities contributed greatly to income growth in the first 6 months of the year.
In addition to effective business results, ACB always prioritizes compliance with liquidity ratios as prescribed by the State Bank. Specifically: LDR rate reached 79% (below 85% compared to regulations); the ratio of short-term capital for medium and long-term loans accounted for 19% (much lower than the regulated level of 34%); the individual capital adequacy ratio far exceeds the regulatory minimum, at 12.4%. The CIR rate improved to 31%, down from 36% in the second half of 2022.
Thanks to the drastic digital transformation strategy, the number of new customers of ACB in the second quarter of 2023 grew strongly, increasing by 50% compared to the first quarter. In which, the number of customers developed through online channels in the second quarter increased double that of the first quarter.
Orient Bank (OCB)
Orient Commercial Joint Stock Bank (Code: OCB) has just announced its business results for the second quarter of 2023 with positive growth momentum.
Accordingly, at the end of the first 6 months of 2023, OCB achieved a pre-tax profit of VND2,560 billion, up 47.2% over the same period last year. Total net revenue reached VND4,453 billion, up 16.8% over the same period. Notably, OCB's non-interest income doubled to VND884 billion in the first 6 months of 2023, contributing to the bank's positive business results.
Net service revenue grew by 4.2%, reaching VND374 billion thanks to cards and account management services, in line with the bank's revenue diversification orientation. In card products alone, international credit and debit card transaction sales recorded a growth of 142% over the same period in 2022. Products such as JCB Gold credit card, JCB Platinum credit card, credit card Mastercard Platinum… received great popularity from the market when the number of new cards issued in the first 6 months of 2023 increased dramatically over the same period.
Operating costs are also strictly controlled by OCB thanks to the strategy of promoting digital transformation, helping to optimize operations. Accordingly, the cost/income ratio (CIR) improved from 39.7% in the first half of 2022 to 31.9%. Digital bank OCB OMNI grew impressively with the number of transactions increasing by nearly 60% over the same period. As for the online home search and loan platform, Unlock Dream Home has connected nearly 30,000 brokers, added 40,000 properties; successfully put into operation a mobile app for brokers and a mobile app for customers get a loan. As of June 2023, there have been nearly 500,000 approaches and nearly 2,000 applications have been disbursed.
As of June 30, 2023, OCB's total assets reached VND 211,292 billion, an increase of 8.9% compared to the end of 2022. In which, customer lending reached VND 127,573 billion, up 6.5% compared to the end of 2022.
Total disbursement for production and business in the first 6 months of the year reached approximately 140% of the accumulated plan, the balance of production and business increased by 67% over the same period in 2022.
Deposit scale at OCB continued to grow significantly when the total deposit in market 1 reached VND147,218 billion, up 7.2% compared to the end of 2022. Customer deposits alone reached VND110,456 billion, an increase of 8, 1% compared to the end of 2022.
Market 1 credit outstanding increased by 6.8% compared to the end of 2022, reaching VND131,125 billion, higher than the industry average (4.7%).
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. Net interest income ratio (NIM) effectively remained at 3.8%, up year-on-year.
In 2023, OCB sets a target of pre-tax profit of VND6,000 billion, up 37% compared to 2022. With the results of the first 6 months, the Bank has completed 42.7% of the whole year profit plan.
SHB
Saigon - Hanoi Commercial Joint Stock Bank (SHB) has just announced its financial statements for the second quarter of 2023 with the accumulated pre-tax profit in the first 6 months of the year reaching VND6,073 billion, up 5.13% over the same period last year.
Specifically, by the end of the second quarter of 2023, SHB's scale indicators achieved good growth. Total assets of SHB reached VND585 trillion, increased by 6.21% compared to the beginning of the year, equity capital reached VND66 trillion. Deposits from market I of SHB achieved good growth with an increase of 13.7% compared to the beginning of the year, reaching VND462 trillion, credit balance reached VND418 trillion.
On July 25, SHB closed the list to pay dividends in 2022 at the rate of 18%, thereby increasing charter capital to VND36,194 billion, ranking in the TOP 5 of private joint stock commercial banks in terms of charter capital. SHB's pre-tax profit in the first 6 months of 2023 reached VND 6,073 billion, up 5.13% over the same period in 2022.
The safety, liquidity, and risk management indicators of SHB were all better than those of the State Bank of Vietnam and international standards. Since the beginning of 2023, SHB has started to apply Basel III standards in liquidity risk management, with a compliance assessment by an international consulting firm to ensure compliance with good practices and requirements of the Basel Committee under Basel III. Results will be announced in the third quarter of 2023.
In May, SHB completed the transfer of 50% of SHBFinance's charter capital to its partner Krungsri, thereby gaining significant resources to improve capital buffers, strengthen financial capacity and fundamental factors, contributing to business growth.
SHB has been and continues to implement many digital transformation projects, modernizing information technology, contributing to creating motivation to optimize operation processes and enhance customer experience, increase efficiency in development services and modern retail banking strategies.
In parallel with ensuring safe and sustainable business activities, in the first 6 months of 2023, responding to the policies of the Government and the State Bank of Vietnam, SHB continued to implement many interest rate reduction programs and packages preferential interest rate credit for customers to support business recovery. At the end of July, in response to the credit program for forestry and fishery products of the State Bank of Vietnam, SHB was one of 12 commercial banks that registered to participate in a credit package of VND15,000 billion for the field of forest products and seafood.
KienlongBank (KLB)
In the first 6 months of 2023, Kien Long Commercial Joint Stock Bank (KienlongBank, code KLB - UPCoM) recorded positive business results with positive growth momentum.
Specifically, in the first 6 months of the year, KienlongBank recorded a consolidated pre-tax profit of VND402 billion, completing 58% of the year target; consolidated profit after tax reached VND321.4 billion, up 15% compared to the first 6 months of 2022.
In the second quarter of 2023 alone, KienlongBank's consolidated pre-tax profit reached VND199.8 billion, down nearly 12% over the same period last year. This decrease comes from the Bank's implementation of policies to accompany and support customers to borrow capital, and its willingness to share difficulties with people and businesses; strengthen the communication of digital transformation products and services so that customers and people can easily access, increase the utility of using banking products and services, as well as increase remuneration and revenue policies for staff.
KienlongBank's total assets recorded by the end of the second quarter of 2023 reached VND86,408 billion, total capital mobilization reached VND77,571 billion. Also in this period, outstanding credit at KienlongBank reached VND48,554 billion, an increase of 6.72% compared to 2022, focusing on key areas such as agriculture and rural development, infrastructure development, etc. contribute to socio-economic development, change urban appearance.
According to the plan approved by the General Meeting of Shareholders, KienlongBank has completed 100.47% of the plan in terms of total assets; total capital mobilization and credit balance reached 99.45% and 92.48%, respectively.
In addition, thanks to the completion of the application of Basel II standards and the successful transformation of the target business model, the bad debt ratio of the whole line was maintained at 1.4%, below the allowed level of 3% and at the same time ensures compliance with regulations of the State Bank.
In the last 6 months of 2023, the economy still faces many challenges, but with the initiative and flexibility, KienlongBank promotes retail activities with digital products to anticipate and make good use of market opportunities, bringing business activities of the Bank for Sustainable Development. With a vision to become a modern bank by 2025, KienlongBank promises to launch more digital products and services to increase value in one "touch point" with target customers.
HDBank
On August 8, Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank - stock code: HDB) held an Investor Conference to update the first 6 months of 2023 with most of the positive growth indicators, Basel III implementation and comprehensive digital transformation.
Top profitability ratio in the market, HDBank maintains its growth trajectory for the 10th year in a row.
At the conference, Mr. Hoang Thanh Tung - Director of HDBank's Investor Relations Department said that in the first 6 months of 2023, most of the Bank's business indicators grew positively. HDBank's total assets have reached VND483,936 billion. Customer deposits reached VND309,645 billion, up 44%, affirming HDBank's reputation and brand in the market and customers' trust. Total outstanding loans reached VND293,129 billion, up 9.3% compared to the beginning of the year.
Answering investors about the above results, Mr. Pham Quoc Thanh - General Director of HDBank further explained that the Bank accelerated the growth of capital mobilization targets in order to proactively prepare sources for credit activities, grasp the recovery trend of the economy in the second half of 2023, while enhancing the quality of capital to meet the new Basel III standards.
In the updated period, HDBank's cost management efficiency continued to improve with its cost-to-income ratio (CIR) continuing its downward trend in recent years and reaching below 35%.
Another bright spot is that digitalization has brought some positive achievements to HDBank when the number of customers using digital channel in the first 6 months of the year increased by nearly 70%; the number of transactions on digital platforms increased by 116%, corresponding to a 132% increase in transaction value over the same period last year.
Thanks to the continuously decreasing CIR, stable NIM ratio, low bad debts, HDBank's revenue and profit maintained its growth trajectory for the 10th consecutive year. With the profit before tax in the first 6 months of 2023 reaching VND5,484 billion, the return on equity (ROE) will reach 22%, continuing to hold the position of the leading effective commercial bank in the system.
Actively seize opportunities from the recovery trend
Information at the conference, HDBank's Director of Investor Relations Department said that in the context of general difficulties in the market in the first half of 2023, HDBank's individual bad debt ratio was controlled at 1.82%, 2.15% - much lower than the bad debt ratio of the whole industry (about 3.4% at the end of April 2023).
Along with strict control of credit quality, through the first 6 months of 2023, HDBank ensured liquidity indicators and operational safety ratios much better than regulations of the State Bank. In which, the capital adequacy ratio (CAR) reached 12.3%, 1.5 times higher than the minimum level under current regulations; the loan-to-deposit ratio (LDR) is 67.8%, much lower than the 85% limit; HDBank's short-term capital ratio for medium and long-term loans is at the lowest level of 9.2% in the industry, much lower than the maximum allowed level of 34%.
Sharing at the conference, General Director Pham Quoc Thanh emphasized, with the above balances, HDBank has the advantage to grasp the recovery trend in the market and believes that it will achieve positive growth targets in the second half of 2023.
With the recovery trend of the economy when the Government's solutions to remove difficulties come into practice, the SBV's operating policies and interest rates have fallen deeply, credit quality and bad debt handling will be more positive. Accordingly, HDBank aims to sharply reduce the consolidated bad debt ratio to 1.7-1.9% by the end of this year. The bank also expects that the credit growth target will be assigned by the State Bank of 23-25%, associated with the task of participating in the restructuring of the weak bank, thereby creating more bases to fulfill both growth targets of the whole year.
N.Nga
Source: VITIC/Tinnhanhchungkhoan