Q3 earnings surge masks widening divide across financial and non financial sectors

Q3 earnings surged by 45 percent year-on-year, but this growth masked a widening divide between financial and non-financial sectors. Banks and securities firms led the financial sector's performance, increasing profits by 9.9 percent, while the non-financial sector saw an 82.8 percent increase in profits. Banks, particularly the major institutions like BIDV, VietinBank, and MB, drove most of the banking sector's profit growth, with MB's after-tax profit increasing by 42.3 percent.

In contrast, the financial services sector experienced a 45 percent decline in profits, with 35 out of 45 companies reporting lower profits on-year and only 10 recording growth. The divergence extended beyond profit growth, as most banks improved their earnings, while many financial services companies faced declining profits or losses.

The non-financial sector also showed significant concentration of growth, with residential real estate and leading conglomerates like Vingroup contributing the most to the sector's profit increase. Oil and gas, basic resources, and retail sectors also played a part in the Q3 earnings season, contributing positively to the overall growth.