Bank bad debt "marshal" Chairman Tran Hung Huy increased by more than 50%

The impact of the Covid-19 epidemic caused the bank of "marshal" Chairman Tran Hung Huy to record a bad debt increase of more than 50% in 2021. This bank also had to increase provisioning by more than 3 times compared to the previous year. 2020.

Consolidated financial statements of the fourth quarter of Asia Commercial Joint Stock Bank (ACB) of "marshal" Chairman Tran Hung Huy announced that in the fourth quarter of 2021, income from interest and similar items decreased slightly compared to the same period last year. period to VND 8,455 billion.

However, interest expenses decreased significantly over the same period, so ACB recorded net interest income of VND 4,794 billion, up nearly VND 400 billion compared to VND 4,415 billion in the same period in 2020.

During the period, ACB recorded positive results from foreign exchange business reaching VND 237 billion, net profit from trading investment securities to VND 58 billion, while other operating expenses decreased to only 65 billion VND. copper.

However, ACB's operating expenses in the fourth quarter of 2021 recorded a strong increase to VND 2,417 billion, an increase of nearly VND 700 billion compared to the same period in 2020.

As a result, ACB recorded a net profit from business activities before provision expenses for credit losses reached VND 3,554 billion, slightly up from VND 3,432 billion in the same period in 2020.

In the fourth quarter of 2021, ACB's provisioning increased more than 2 times over the same period in 2020 to 524 billion dong, the bank of the "marshal" Chairman Tran Hung Huy reported a pre-tax profit of 3,029 billion dong, a decrease of 4. 9% over the same period.

For the whole year, ACB's pre-tax profit reached nearly VND 12,000 billion, up 25% compared to 2020. Many business segments of ACB had positive results.

Specifically, net interest income in 2021 increased by 30% to 18,944 billion dong. Non-interest business grew strongly, of which service profit increased by 71% to 2,893 billion dong. Profit from foreign exchange business increased 27% to 871 billion dong. Profit from trading securities increased by 170% to 450 billion dong.

However, investment securities trading activities were less positive, with a profit of only VND 244 billion in 2021, down 66.7% compared to the previous year. Profit from other activities also halved to 139 billion dong.

Accordingly, ACB's total operating income last year reached VND 23,564 billion, up 29.7%. Operating expenses increased by 7.9% to VND 8,230 billion. As a result, pre-provision profit reached VND 15,334 billion, up 45.5%.

The bank's fourth quarter consolidated financial statement also showed that ACB's bad debt in 2021 increased by one and a half times to 2,799 billion dong.