Orient Commercial Joint Stock Bank (HOSE: OCB) has just announced its business results for the first 6 months of 2024, recording a profit of VND 2,113 billion. Although accumulated in the first 6 months of the year, debt groups increased and came mainly from individual customer groups, however, OCB still controlled the bad debt ratio at 2.3%, lower than the 3% control level of State bank.
OCB leaders said that in the last months of the year, the bank will focus on promoting the development of individual customer groups in the middle and high-end segments with "tailor-made" products suitable for each specific need. In addition, apply new and effective policies to increase credit quality, speed up bad debt handling and digital transformation.
“In the first 6 months of the year, with both objective and subjective factors from the market along with proactively offering many policies to accompany customers as well as increasing technology investment costs, personnel costs have caused OCB's second quarter results as well as its 6-month accumulation did not meet expectations. However, with the goal of stable, transparent, sustainable growth, with a clear strategy and specific action plan, I expect that in the last 6 months of the year, the bank will have better results", Mr. Pham Hong Hai, General Director of OCB said.
Halfway through 2024, ACB Bank achieved a pre-tax profit of 10.5 trillion, credit growth of 12.8%, continuing to be in the group of banks with the lowest bad debt ratio in a volatile economic context. The banking and finance industry faces many challenges.
Accumulated in the first 6 months of 2024, the bank's consolidated pre-tax profit reached 10.5 trillion. In the second quarter of 2024, pre-tax profit reached 5.6 trillion VND, growing 16% over the same period thanks to good growth in scale, improved service fees and strict cost control. ACB's ROE ratio continues to remain high at 23.4%, leading the market in terms of efficiency.
Some other joint stock commercial banks also reported profits in the context of improved credit. LPBank reached 3,302.5 billion VND in pre-tax profit in the second quarter of 2024, nearly 3.5 times higher than the same period in 2023. Accumulated in the first 6 months of 2024, the bank's profit was at 5,918.9 billion VND, an increase growth of 142%. Techcombank recorded pre-tax profit in the first 6 months of 2024 of 15,600 billion VND, an increase of more than 30% over the same period last year, mainly thanks to net interest income (NII) increasing by more than 40%, reaching 18,000 billion VND.
Improved credit is said to be a factor boosting the banking industry's profits in the second quarter as well as the first half of the year. However, the second quarter profit growth of the entire industry is expected to not be high and there will be differentiation among banks.
In a recently published analysis report on the banking industry, Rong Viet Securities Company (VDSC) forecast that 2024 will continue to be a year of many challenges for the banking industry, but some credit institutions There will be an improvement in profit growth. Accordingly, VDSC expects that the average after-tax profit growth of banks on the watch list will reach 18% over the same period, with interest income growing by 19%.
Bank profits are forecast to be positive thanks to better credit growth from the second quarter, when lending interest rates are more reasonable and the economy continues to recover, leading to demand for production and business loans, consumption increases. Deposit interest rates have increased but are still quite low, so NIM of the whole industry will recover slightly and contribute to net interest income growth. With total operating income growth recovering, VDSC believes that the bank will have a basis to increase provisions to improve the ability to handle bad debts and control asset quality.
