Vietnam Prosperity and Development Joint Stock Commercial Bank (PG Bank) has just announced its financial report with a loss of VND 4.6 billion in the fourth quarter of 2023, while in the same period of 2022 it had a profit of VND 118.6 billion.
The first bank to report a loss in the fourth quarter of 2023
The reason for the poor business results in the fourth quarter of 2023 was due to losses in many non-credit activities, while risk provisioning costs increased sharply. Specifically, service activities reported a loss of VND 10.3 billion, in contrast to the profit of VND 26 billion in the fourth quarter of 2022. Foreign exchange trading activities also suffered a loss of VND 4 billion; investment securities recorded a loss of VND 3.5 billion, higher than the loss of VND 2.4 billion in 202. Meanwhile, net profit from other business activities decreased by more than 80.4%, down to VND 10.8 billion, and risk provisioning costs increased sharply by 75% to VND 91 billion...
According to PG Bank, the decrease in profits was mainly due to the reduction in lending interest rates to customers according to the Government 's policy, while the cost of mobilization has not decreased due to the delay and PG Bank's credit growth is concentrated in the last month of 2023. In addition, PG Bank pays remuneration to collaborators who introduce customers to borrow to promote credit, causing service operating costs to increase.
However, the bank still achieved a cumulative profit after tax of VND 283.5 billion in 2023, down 29.8% compared to 2022. By the end of 2023, PG Bank's total assets reached VND 55,495 billion, up 13.3% compared to the beginning of the year, of which customer loans increased by 21.6%. Previously, at the end of the third quarter of 2023, the bank's total assets decreased by 2.4% compared to the beginning of the year, while customer loans increased by only 4.9%.
According to the bank's announcement, the average income of employees in the fourth quarter of 2023 was 22 million VND, down 4.3% compared to the same period in 2022...
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