Friday, 23 Aug 2019

Total assets of banks in Vietnam top US$480 billion

Updated at Monday, 10 Jun 2019, 16:24
The Hanoitimes - The total assets of commercial banks under state ownership accounted for 44% of the total in the banking sector, followed by joint stock commercial banks with 41%, Vietnam Finance reported.
The total assets of Vietnam’s banking sector reached VND11,200 trillion (US$480.13 billion) as of April 30, up 1.36% compared to the beginning of the year, according to the latest report of the State Bank of Vietnam (SBV).
Illustrative photo.
Illustrative photo.
Total assets of seven state-controlled commercial banks, including three major lenders namely Bank for Investment and Development of Vietnam (BIDV), Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), and Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), were reported at VND4,930 trillion (US$211.34 billion), an increase of 1.37% over the beginning of the year and accounting for 44% of total assets in the banking sector. 

Meanwhile, total assets of joint stock commercial banks were VND4,630 trillion (US$198.48 billion), increasing 1.64% compared to the beginning of the year and making up 41% of the total assets. 

They were followed by joint venture banks and wholly foreign-owned banks with total assets of VND1,120 trillion (US$48 billion), down 1.03%; financial and leasing companies with VND173.84 trillion (US$7.45 billion), up 3.59%; co-operative banks with VND33.17 trillion (US$1.42 billion), up 2.31%; people’s credit funds with VND118.27 trillion (US$5.07 billion), up 4.51%; and Vietnam Bank for Social Policies with VND204.78 trillion (US$8.78 billion), up 4.55%.

As of April 30, total own capital of the banking system reached VND851.79 trillion (US$36.52 billion), up 5.66% against the beginning of the year, equivalent to an increase of VND48 trillion (US$2.05 billion).  

In terms of owner's equity, state-owned commercial banks are behind joint stock commercial banks-VND282.19 trillion (US$12.1 billion) against VND326.96 trillion (US$15.1 billion), posting growth rates of 5.06% and 4.18% compared to the beginning of the year, respectively. 

On the other hand, owner's equity of joint venture banks and wholly foreign-owned banks was VND177.03 trillion (US$7.59 billion), up 8.7%, and that of financial and leasing companies was VND36.31 trillion (US$1.55 billion).

The chartered capital of state-owned commercial banks in the first four months of 2019 saw a slight increase of 0.75% year-on-year to VND149 trillion (US$6.38 billion), while that of joint stock commercial banks reached VND268.87 trillion (US$11.53 billion), up 0.61%. 

With regards to the capital adequacy ratio (CAR), all above-mentioned credit institutions had the ratio above the 9% limit. However, the CAR of state-owned commercial banks is fast approaching the lower limit at 9.61%, while that of joint stock commercial banks is quite high, at 11.2%. 

In terms of short-term capital for mid- and long-term lending, both state-owned and joint stock commercial banks have brought the rate under the acceptable limit of 40% according to law, reaching 30.99% and 31.52%, respectively. 
Ngoc Mai
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