CORPORATE PROFITS SOAR IN Q1 2025, LED BY BANKING SECTOR

According to statistics from Yuanta, market-wide revenue and post-tax profit rose by approximately 20.1 per cent and 50.8 per cent year-on-year respectively, buoyed by the low comparative base of 2024.

Market-wide revenue and post-tax profit rose by approximately 20.1 per cent and 50.8 per cent year-on-year respectively — VNA/VNS Photo

HÀ NỘI — As of April 28, a total of 685 listed companies, representing 40 per cent of market capitalisation across Việt Nam’s three stock exchanges, had released their first-quarter financial results, revealing a broad-based surge in profits.

According to statistics from Yuanta, market-wide revenue and post-tax profit rose by approximately 20.1 per cent and 50.8 per cent year-on-year, respectively, buoyed by the low comparative base of 2024.

Notably, several sectors reported encouraging results, with media, real estate and retail as standouts, while sectors covering personal goods continued to face challenges.

The banking sector remained the main driver of market growth, with post-tax profits of 13 out of 27 listed banks rising by an average of 21 per cent, despite the low interest rate environment early this year. Some banks reported exceptional growth, including SSB (190.7 per cent), MBB (44.3 per cent), STB (37.2 per cent), HDB (35.6 per cent) and VPB (25.2 per cent).

The securities sector exhibited a clear divergence in performance. Despite the VN-Index gaining 3.2 per cent year-to-date as of March 31 and margin lending across the market reaching VNĐ257.5 trillion (US$9.9 billion) up 36.3 per cent year-on-year, the sector’s post-tax profits fell by 4.2 per cent.

Large brokerages, such as MBS, VCI, VIX, CTS, and FTS, continued to record solid results, supported by proprietary trading and margin lending, while many smaller firms struggled.

The information technology sector posted a 19.8 per cent increase in post-tax profits, largely driven by FPT, which reported a 20.1 per cent rise. However, many other IT firms saw less positive outcomes.

Meanwhile, the media sector delivered a remarkable surprise, with post-tax profits skyrocketing by 12,364 per cent, thanks to VEF’s extraordinary contribution from the transfer of the Vinhomes Global Gate project and increased financial incomes.

While concerns over tariffs may impact business activities directly or indirectly throughout 2025, the majority of companies remain optimistic, setting high revenue and profit growth targets. Sectors such as securities are projected to grow profits by 20.9 per cent, automotive parts by 77.8 per cent, retail by 30.8 per cent and banking by 17.6 per cent this year.

Previously, MBS Securities had forecast that overall market profits in Q1 2025 could increase by 17 per cent year-on-year, supported by low interest rates and a strong rebound in consumer spending.

The banking sector was expected to achieve 15 per cent profit growth, driven by accelerating credit growth from the start of the year. Several other sectors also reported impressive profit increases, such as real estate (up 719 per cent), industrial parks (up 61 per cent) and energy (up 41 per cent).

Nonetheless, some industries saw declines. Aviation profits fell by 46 per cent due to the absence of exceptional gains recorded last year, while oil and gas profits dropped by 27 per cent as global oil prices cooled.

The first-quarter earnings season indicates that the market is steadily recovering from a volatile 2024, laying a solid foundation for strong growth expectations throughout 2025. — VNS

Source: VNS