State-owned banks, including Vietcombank, VietinBank, and BIDV, have recently released their first-quarter financial statements, showing a significant increase in the State Treasury’s deposit balances. During the first quarter of the year, deposit balances from the State Treasury at these banks more than doubled, each recording over 45,000 billion VND.
In terms of business results, Vietcombank saw a slight decrease in profit while BIDV and VietinBank both recorded an increase. Despite this decrease in profit for Vietcombank, they still maintained the lead with a pre-tax profit of over 10,700 billion VND. BIDV reported a pre-tax profit of nearly 7,400 billion VND and VietinBank recorded a pre-tax profit of 6,200 billion VND.
The State Treasury’s idle funds are currently deposited for a term at commercial banks to maximize 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.
Overall these positive financial performance showcases that state-owned banks have successfully managed their resources and have contributed positively to the economy by providing loans to priority sectors such as government spending and infrastructure development projects among others.
