Bank tellers and customers in Hanoi (Photo: VNA)The financial statements in Q1 2022 of many banks published recently showedthat besides the rapid growth of credit, revenue from services contributedsignificantly to the banks’ positive business results in the period.
Typically, in Q1 2022, the Commercial Joint Stock Bank for Foreign Trade ofVietnam (Vietcombank) gained 2.58 trillion VND of net profit from services and 1.52trillion VND of net profit from foreign exchange trading.
For Vietnam Technological and Commercial Joint Stock Bank (Techcombank) and SaigonThuong Tin Commercial Joint Stock Bank (Sacombank), the service revenue in Q12022 reached 1.79 trillion VND and 1.53 trillion VND, up 35 percent and 83 percentcompared to the same period of last year, respectively.
Many other private joint-stock banks such as Vietnam Prosperity CommercialJoint Stock Bank (VPBank), HCM City Development Commercial Joint Stock Bank(HDBank), Military Commercial Joint Stock Bank (MB), Asia Commercial JointStock Bank (ACB), Vietnam International Commercial Joint Stock Bank (VIB),Maritime Commercial Joint Stock Bank (MSB) and Saigon Hanoi Commercial JointStock Bank (SHB) also recorded many positive results from service activities inQ1 2022.
MB, for example, saw an increase of 4.8 percent to nearly 1.12 trillion VND inthe profit from services thanks to a large contribution from bancassurancechannel. The bank’s profit from foreign exchange trading grew by 98 percent to 467billion VND.
Meanwhile, MSB also achieved more than 335 billion VND of net profit fromservice activities in Q1 2022, up nearly 175 percent over the same period of2021, mainly thanks to the segments of credit cards, insurance services andpayment activities.
For VIB, the non-interest income was 650 billion VND, contributing 16 percentto the bank’s total operating income.
Among the service activities of banks, bancassurance channels accounted for afairly large proportion in Q1 2022 and contributed considerably to the servicerevenue structure of many banks. The income is expected to further increasenext time.
Vice-chairman of Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank)Pham Doan Son said the bank is negotiating with its partners aboutbancassurance as the insurance contract between the bank and Dai-ichi Lifeexpires in May 2022.
Banking expert Nguyen Tri Hieu said that diversifying revenue sources is one ofthe targets that many banks have focused on for the past few years, especiallyin the past two years when the traditional source of revenue from creditactivities has slowed and posed higher risks due to the pandemic.
“Increasing revenue from services has helped banks operate more healthily andsustainable, and minimise risks. The change will also contribute to graduallyrealising targets set out in the development strategy of the banking industry,”Hieu said./.
VNA
