Banks meet Q1 2025 profit plans

Banks meet Q1 2025 profit plans

Bank profits increased in the first quarter of this year, largely due to improved credit.

With Q1 2025 positive results, ACB expects its pre-tax profit target of more than VNĐ23 trillion set for the whole year is feasible. — Photo cafef.vn

 Many banks have achieved profits set for the first quarter of 2025, thanks to positive credit growth, making many confident of hitting their profit targets for the entire year.

The General Director of ACB, Từ Tiến Phát, said that in the first quarter of 2025 (Q1), the bank completed about 20 per cent of the VNĐ23 trillion annual plan.

The bank’s credit and mobilised capital increased by more than 3 per cent and more than 2 per cent, respectively. In the context of increasing bad debts in the banking system, ACB's bad debt ratio in the Q1 decreased slightly to 1.34 per cent, helping the bank increase its operational efficiency.

Phát believes these strong results have laid a solid foundation for ACB to achieve its full-year pre-tax profit target of over VNĐ23 trillion.

VIB posted a first-quarter profit equivalent to 20–22 per cent of its annual target of over VNĐ11 trillion. Chairman Đặng Khắc Vỹ attributed the strong performance to positive credit growth, with outstanding loans rising by around 3 per cent to VNĐ335 trillion as of March 10, and expected to continue increasing in the near future.

According to Vỹ, the first quarter included the Tết (Lunar New Year) holiday when business performance often declined. Therefore, he expects profits will gradually increase in the coming quarters, especially the last quarters of the year, helping the bank’s annual profit target become achievable.

Nam A Bank has just announced its business results for the first quarter of 2025 with pre-tax profit of more than VNĐ1.21 trillion, up 21.52 per cent over the same period last year.

As of March 31, the bank's total assets reached nearly VNĐ263 trillion, up more than 7 per cent compared to the beginning of 2025, while credit and mobilised capital reached nearly VNĐ178 trillion and nearly VNĐ204 trillion, up 6 per cent and nearly 14 per cent year-on-year, respectively.

In terms of asset quality, the bank’s bad debt ratio was at 2.23 per cent and the bad debt coverage ratio was nearly 54 per cent.

Meanwhile, TPBank expected to earn a pre-tax profit of VNĐ2.1 trillion in the first quarter, up nearly 15 per cent over the same period last year and a revenue of VNĐ4.3 trillion by the end of March.

According to the State Bank of Việt Nam’s recent Q1 2025 business trend survey, 74–76 per cent of banks expected better overall performance and higher pre-tax profits compared to Q4 2024, with the positive momentum forecast to continue into Q2 2025.        

Bizhub