Hanoi (VNS/VNA) - Many banks reported negativeresults in securities trading and investment in 2022 due to the interest ratehike, the exchange rate uncertainty, the sharp decline of stock indices and the‘freezing’ of the corporate bond market, cafef.vn reported.

At State-owned VietinBank, most of its main business segments experiencedpositive development in the last quarter of 2022. The bank’s net interestincome rose by 23.6% to 12.85 trillion VND and the net income from serviceactivities increased by 53% to more than 1.78 trillion VND while the net incomefrom foreign exchange trading was 1.123 trillion VND, up by nearly 2.5 timesyear-on-year.

However, VietinBank’s proprietary trading made a loss of 126 billion VND in2022. The result was much worse than the previous year when the bank made aprofit of 720 billion VND in the business segment.

Another State-owned big player Vietcombank was also under the same trend.Though the bank’s net interest income grew by 38.8% to 14.8 trillion VND, its proprietarytrading in 2022 made a loss of 115 billion VND, while it made a profit of 137billion VND in 2021.

Techcombank also had proprietary trading seeing a loss of 241 billion VND in2022, against a profit of 152 billion VND in 2021.

Sacombank also recorded negative results from proprietary trading.Specifically, the bank lost 20 billion VND from the activity in 2022, while inthe previous year it made a profit of 163 billion VND.

TPBank’s pre-tax profit in 2022 was nearly 7.83 trillion VND, up 30% againstthe previous year, but the bank’s net income from proprietary operation fell by70%.

According to the quarterly consolidated financial statement recently releasedby ACB, the bank’s pre-tax profit in 2022 was more than 17.11 trillion VND, up43% year-on-year, thanks to a decrease in credit risk provisions and anincrease in income from service activities (up 22% to 3.53 trillion VND) andfrom foreign exchange trading (up 20% to 1.05 trillion VND). However, thebank’s securities trading segment plummeted by up to 92%.

Many other banks such as VPBank, SHB and ABBank all recorded lower securitiesbusiness results compared to 2021.

Fiin Ratings attributed the banks’ negative results in securities trading andinvestment to the interest rate hike, the exchange rate uncertainty, the sharpdecline of stock indices and the ‘freezing’ of the corporate bond market.

Closing the session at the end of 2022, VN-Index and HNX-Index decreased by32.7% and 56.7%, respectively, compared to the beginning of the year, whichcaused the stock portfolio held by banks and their subsidiaries of whichbusiness results are consolidated on the banks’ financial statements declinedsharply./.