Many banks "evaporate" hundreds of billions of dong in profits after auditing

According to statistics based on 27 listed banks that have announced their 2023 audited financial statements, 10 banks have reduced after-tax profits compared to their previous self-reported figures.

Profit decrease due to increased provisioning

Of which, there are 5 banks with the largest decrease, including: OCB (-875 billion VND), VPBank (-146 billion VND), SHB (-145 billion VND), VietinBank (-89 billion VND), BIDV (-50 billion VND)...

* Pre- and post-audited profit after tax at 27 listed banks. Banks marked with (*) show changes.

Specifically at OCB, consolidated profit after tax in the self-prepared report reached 4,178 billion VND. But after auditing, this profit was only 3,303 billion VND, down 875 billion VND, equivalent to 21%.

In the audit report, total operating income was adjusted, decreasing by 587 billion VND compared to the self-made figure. In which, the net interest income mainly decreased by 525 billion VND.

Provisions for credit risks also skyrocketed, from VND1,126 billion to VND1,627 billion, an increase of nearly 45%.

OCB leaders said that the bank has adjusted some income items that have actually collected money from customers in 2023 to be fully accounted for in the first quarter of 2024.

VPBank also announced its 2023 financial report with after-tax profit of VND 8,494 billion, a decrease of VND 146 billion compared to its self-made figure.

Some indicators in the business results report changed such as net profit from service activities, net profit from operations... Notably, VPBank had to increase risk provisioning expenses by 150 billion VND, up to 24,994 billion VND.

Net interest income and net interest income from other activities both decreased, while the provision for credit risk was high, VPBank's net profit in 2023 decreased by nearly 50% compared to 2022. In the audit report, the bank's bad debt ratio at the end of 2023 was 5%.

Multiple audited adjusted earnings

At SHB - the bank chaired by Mr. Do Quang Hien (Mr. Hien), the audited after-tax profit was 7,324 billion VND, down more than 145 billion VND compared to the previously published report.

SHB's profit decreased because many indicators on the business performance report were adjusted. For example, net interest income, when this indicator was set independently, reached 19,729 billion VND, but after auditing, it decreased by 444 billion VND, to 19,285 billion VND.

A series of indicators such as net profit from service activities, net profit from trading investment securities, income from capital contributions, share purchases, etc. have also been adjusted.

As a result, SHB's net operating profit decreased by VND380 billion. In return, credit risk provision expenses also decreased by VND374 billion, "saving" SHB's total pre-tax profit.

But because corporate income tax was adjusted after the audit to "increase" by 140 billion VND, SHB's net profit still "evaporated".

The list of reduced profits after auditing also includes VietinBank. Specifically, the audited financial report for 2023 of this "Big 4" bank is 89 billion VND shorter than the self-prepared one. In particular, indicators such as net interest income, net profit from service activities... have changed.

Finally, VietinBank's net operating profit was VND50,104 billion, down VND111 billion. The year before, VietinBank also reported a decrease in after-tax profit of nearly VND140 billion when it released its audited report.