In the first quarter of the year, deposit balances from the State Treasury at VietinBank and BIDV surpassed 45,000 billion VND each, indicating a remarkable increase in state-owned banks’ financial performance. VietinBank reported a deposit balance of 45,445 billion VND and BIDV recorded a balance of 40,000 billion VND in term deposits and over 5,500 billion VND in demand deposits. This represents a significant rise from their previous year’s balances.
The State Treasury’s idle funds are currently being deposited for a term at commercial banks to maximize their benefits. These funds are used for various priority purposes such as lending to the State budget, repaying principal, and making advances when necessary. By the end of 2023, nearly 7.8 million VND of idle funds from the State Treasury had been deposited at commercial banks, earning an interest of 25,100 billion VND.
In terms of first-quarter business results, Vietcombank saw a slight decrease in profit while BIDV and VietinBank both recorded an increase. Despite this setback, Vietcombank maintained its lead with a pre-tax profit of over 10,700 billion VND. On the other hand, BIDV reported a pre-tax profit of nearly 7,400 billion VND up by 7% from the first quarter of 2023 and VietinBank recorded a pre-tax profit of 6,200 billion VND up by 4% from the previous year.
Overall, these developments showcase positive financial performance from the banking sector as well as successful management practices by state-owned banks in utilizing idle funds to generate revenue while maintaining high levels of liquidity and meeting priority needs.
