The retail segment once again proved its pole role at VPBank in the third quarter of 2022 when credit outstanding balance from individual customers, small- and medium-sized enterprises (SME), and at FE Credit contributed nearly 70 per cent of the bank’s total credit outstanding balance, growing approximately 20 per cent on-year.

The bank's consolidated credit outstanding balance in the quarter reached $19.26 billion.

Meanwhile, credit outstanding balance in retail segment at VIB surpassed $8.69 billion in the third quarter, placing the bank in the group of top performers among private commercial lenders.

By the end of third quarter, VIB’s credit outstanding balance contributed more than 35 per cent of total spending volume by Mastercard holders in Vietnam. Simultaneously, thanks to strong digital transformation, in the first three quarters of 2022 VIB eyed digital bank transaction value more than double compared to 2021 and accounted for 93 per cent of total transactions through digital channel.

Besides the retail segment, income from services of banks has also inched up steadily.

In the first nine months this year, TPBank eyed a 78 per cent hike on-year in services revenue, which touched $81.56 million. Its pre-tax profit during the period amounted $261 million, an increase of $66.6 million, equal 35 per cent on-year, and reaching 72 per cent of full-year projection.

According to Nguyen Duc Thach Diem, CEO of Ho Chi Minh City-based Sacombank, non-interest income contributed 39.4 per cent of the bank’s total income sources in the first nine months.

This was mostly thanks to strong digital drive, from there making positive contribution to bolstering Sacombank’s financial efficiency.

Techcombank CEO Jens Lottner unveiled that the bank posted 21.8 per cent growth in its pre-tax profit in the first three quarters, reaching $904.3 million thanks to efficient business in core fields, with augmented lending in retail segment.

Techcombank’s credit portfolio continues shifting from lending to large corporates to retail segment to mitigate risk and enhance capital usage efficiency.

Particularly, the bank’s loan outstanding balance to retail customers soared 61.2 per cent on-year to reach $967 million, accounting for 49 per cent of Techcombank’s credit portfolio, compared to 36.4 per cent in 2021’s same period.

Techcombank’s loan outstanding balance from SMEs came to $3.07 billion, showing 22.7 per cent jump on-year, meanwhile total credit outstanding balance from large corporates shed 12 per cent falling to $7 billion, making up 35.5 per cent of the bank’s credit outstanding volume, compared to 48.5 per cent level in the third quarter in 2021.

ACB’s credit portfolio is also focused on retail segment, reaching 94 per cent, placing ACB among lenders with efficient operation.

By the end of the third quarter, ACB raked in $587 million in pre-tax profit, fulfilling more than 90 per cent of the full-year projection.

ACB is also one of the top performers in the banking sector in the return-on-equity ratio which reaches 27 per cent.

The analytic division under Agribank Securities (Agriseco Research) made a forecast that the banking sector’s profit picture in 2022 and 2023 would be less upbeat compared to the past two years due to limited space for credit growth, meanwhile banks’ profit margin is under pressure when the deposit rate tends to go up while it is not simple to raise lending rate correspondingly.