An employee counts Vietnamese banknotes at a bank in Hanoi.
Photo by VnExpress/Giang Huy. 

Listed companies reported an average year-on-year fall in profits of 30.6 percent in the second quarter, compared to a drop of 58.5 percent in the first. 

The improved figures were mostly due to non-operating income, which doubled and accounted for 20 percent of the profits of non-banking companies, according to a report by financial data provider FiinGroup.

This income includes sale and lease back gains for budget airline Vietjet Air, investment liquidation by conglomerate Vingroup and a divestment by real estate firm Novaland, the report, which compiled data from 1,032 non-bank listed companies that have published their financial statements as of August 18, said.

Non-bank companies have actively diversified their income sources or reversed inventory write-downs to offset revenue shortfalls amidst the Covid-19 pandemic, the report said.

They have also cut operating costs to stay afloat, and been helped by the government’s support policy which resulted in lower interest expenses, it added.

This is the first time since 2016 that non-bank companies’ profits have fallen for two consecutive quarters, indicating the damage caused by the pandemic.

Nine out of 18 sectors saw post-tax profits decline, with the sharpest fall of 200 percent recorded by travel and leisure, followed by oil and gas, telecommunications and property.

The remaining nine sectors posted growth, led by financial services (156.2 percent), insurance, automobiles and parts, media, and basic resources.

The 18 sectors expected their post-tax profit for the year to fall by an average of 20.5 percent. The most pessimistic forecast is by travel and leisure (301 percent), followed by oil and gas (59.2 percent) and personal and household goods (31.1 percent).

The media has the most positive outlook with a forecast of 205.4 percent growth followed by telecommunications (59.6 percent) and basic resources (25.6 percent).