State Treasury’s Deposit Balances at VietinBank and BIDV See Significant Increase in First Quarter; Business Results for Major Banks Mixed

The first quarter of the year saw a significant increase in the State Treasury’s deposit balances at three state-owned banks. VietinBank and BIDV each recorded more than 45,000 billion VND, with Vietcombank having the lowest balance among the three banks. These banks recently released their first-quarter consolidated financial statements, showing a substantial increase in the State Treasury’s deposit balance during the first three months of the year.

The State Treasury comprises all cash at Treasury units, with state funds available in Treasury accounts opened at the State Bank and commercial banks. Idle state funds are used in order of priority, including lending to the State budget, repaying principal, and making advances. These funds are deposited for a term at commercial banks through a bidding process for interest rates and term repurchase of Government bonds to maximize benefits. By the end of 2023, nearly 7.8 million VND of idle money from the State Treasury was deposited for a term at commercial banks, earning interest of 25,100 billion VND.

In terms of business results for the first quarter, Vietcombank’s profit slightly decreased while BIDV and VietinBank saw increases. Vietcombank, with the highest profit in the system, maintained its lead with a pre-tax profit of over 10,700 billion VND, down slightly over the same period. BIDV reported a pre-tax profit of nearly 7,400 billion VND, an increase of 7% compared to the first quarter of 2023, with revenue from foreign exchange trading doubling. VietinBank recorded a net interest income increase of over 15,100 billion VND while operating costs rose by 10%, resulting in a pre-tax profit of 6,200 billion VND up by 4% from last year’s profits.

Overall