Vietnam Public Joint Stock Commercial Bank (PVCombank) is the only bank reporting a loss in the second quarter of 2024 with a negative consolidated pre-tax profit of VND 239,578 billion, a sharp decrease compared to the pre-tax profit of VND 35,984 billion in the first quarter.

In the first 6 months of the year, PVCombank achieved 69,675 billion VND in consolidated pre-tax profit, up 58% over the same period last year. With this result, PVCombank ranked 27th in 6-month profit among 30 commercial banks that have announced financial reports.

The main reason why PVCombank recorded a loss in the second quarter was that interest income decreased by 13% compared to the same period, down to VND3,859 billion; net loss from foreign exchange trading activities amounted to VND205 billion (same period loss was VND101 billion);...

Accumulated in the first 6 months of the year, interest income and similar income received was VND4,982 billion, down 22% over the same period, while interest expense increased 32% to VND8,255 billion.

Revenue from service activities in the first 6 months of the year also decreased sharply by 36%, reaching only 120 billion VND.

Meanwhile, money spent on employees and public administration activities of PVCombank in the first half of this year increased to VND1,771 billion, up 13% over the same period.

As of June 30, employee expenses increased by 11% to over VND998 billion compared to the same period last year. The average expenditure per capita at PVCombank in the first 6 months of the year was VND25 million/person/month, including salary, bonus and salary-based contributions.

According to PVCombank's explanation, the reason for the negative profit in the second quarter was because the bank restructured its profitable assets and restructured its investment portfolio of both stocks and bonds, so net income from securities activities increased sharply, and at the same time, additional provisions for credit risk increased sharply, so the cost of credit risk provisions increased sharply.

According to the report, PVCombank's customer loans as of June 30, 2024 reached VND 103,836 billion, an increase of 5.54% compared to the end of 2023.

Bad debt has decreased from 4% at the end of 2023 to 3% as of June 30, 2024. However, group 5 debt (debt with the possibility of losing capital) increased by nearly 17% to VND 2,840 billion.

Analyzing outstanding loans by industry, PVCombank prioritizes capital for the real estate sector with outstanding loans of approximately VND 30,000 billion, accounting for 28.8% of total outstanding loans (the proportion of real estate loans by the end of 2023 is 15.6%).

While credit growth was only 5.54%, customer deposit mobilization at PVCombank decreased by 1.45% compared to the end of 2023, reaching VND 175,583 billion. Of which, the CASA ratio, although increasing by 17%, only accounted for 6% of total customer deposits. The low CASA ratio puts PVCombank at a disadvantage compared to its competitors in reducing capital costs.

PVCombank is among the youngest commercial banks in Vietnam, established in 2013 on the basis of the merger between Vietnam Oil and Gas Finance Joint Stock Corporation (PVFC) and Western Commercial Joint Stock Bank.

PVCombank currently has a charter capital of VND9,000 billion, of which the Vietnam National Oil and Gas Group (PVN) contributes 52%. Strategic shareholder Morgan Stanley holds 7% of the bank's charter capital.

The bank has 3 subsidiaries: Petroleum Securities JSC (PVCombank holds 51% of capital), PVCombank Fund Management JSC (99.97%), PVCombank Debt Management and Asset Exploitation LLC (100%).