Financial institutions achieve Q1 2025 earnings objectives
Banks across Vietnam have begun to announce their Q1 2025 earnings, painting a promising picture for the year. Here’s a rundown of some key banks' performances:
1. Vietnam Joint Stock Commercial Bank For Industry and Trade (Vietinbank)
- Q1 Net Income: Approaching VND 5.4 trillion, marking an 8.9% increase from Q1 2024.
- Net Interest Income: Inching upwards to VND 15.5 trillion.
- Total Assets: As of March 31, 2025, hit VND 2,469 trillion, up from VND 2,385 trillion at the end of 2024.
- Analyst Confidence: High, with analysts expressing 12 buy recommendations, zero holds, and no sells.
2. Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank)
- Q1 Pre-Tax Profit: VND 5.35 trillion (approximately $205.8 million), representing a 33% year-on-year increase.
- Total Operating Income: Consistently strong at VND 9.2 trillion.
- Return on Equity (ROE): A healthy 29.62%.
- Total Assets: increased by 18%, reaching VND 711.3 trillion as of March 31, 2025.
3. Vietnam Prosperity Joint Stock Commercial Bank (VPBank)
- Q1 Pre-Tax Profit: VND 5.02 trillion (approximately $193.08 million), soaring nearly 20% year-on-year.
- Full-Year Target: Aims to boost the consolidated pre-tax profit by 26%, reaching VND 25.27 trillion.
- Consolidated Assets: Increased by 8%, hitting VND 994.04 trillion at the end of Q1 2025.
Optimism for the Year Ahead
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
- Vietinbank: The bank's positive growth momentum fosters a sense of optimism for the rest of the year, though specific full-year targets have yet to be revealed.
- HDBank: With its new financial banking group model, HDBank intends to continue growing robustly, however, full-year targets remain undisclosed.
- VPBank: Aggressively targeting a 35% annual credit growth over the next five years, VPBank's strategic focus on digitalization, financial service diversification, and operational efficiency underpins its growth strategy.
These performances suggest a cautious optimism amidst economic challenges, with strategies centered on digital growth, diversified services, and operational improvement. With Q1 profits set, each bank is poised to tackle the rest of the year with determination.
- The AI analysis of the banking and insurance industry shows a noteworthy increase in Vietnam's business sector, with major players like Vietinbank, HDBank, and VPBank creating a significant impact on the country's economy.
- Vietinbank's AI-powered strategies have been effective in driving growth, with Q1 2025 net income approaching VND 5.4 trillion and an 8.9% year-on-year increase.
- HDBank's AI-led financial decisions have resulted in a 33% year-on-year increase in pre-tax profit and a 29.62% return on equity (ROE) in Q1 2025.
- VPBank's AI-based approach to digitalization, financial service diversification, and operational efficiency aims for an annual credit growth of 35% over the next five years.
- In the AI-dominated realm of finance, analysts remain positive about the industry's growth, predicting a feasible pre-tax profit target of more than VND 23 trillion for Vietnamese banks in 2025.
