Notably, Vietinbank has jumped from the 408th position in 2017 to 310th in 2018, becoming one of the top 10 brands improving the most in value, with 51%, stated the report.
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BIDV, on the other hand, saw its rank increase from 401st to 351st, while Vietcombank went from 461st to 368th.
On February 27, Fitch Ratings has upgraded the Long-Term Issuer Default Rating (IDR) of Military Bank to 'B+' from 'B' with a Stable Outlook and its Viability Rating to 'b+' from 'b'. The agency has also upgraded the Viability Ratings of Vietcombank and Vietinbank to 'b' from 'b-'.
The Long-Term IDRs of Agribank, Vietinbank, and Vietcombank have been affirmed at 'B+' with a Positive Outlook. The IDR of ACB has been affirmed at 'B' with a Stable Outlook.
The positive ratings took into account the Vietnamese banking system's enhanced operating environment, with improved economic policy-making from authorities promoting macroeconomic stability and predictability, stated Fitch Ratings in its report.
This has enabled banks to significantly reduce their exposure to legacy problem loans that have long weighed on their balance sheets and offsets, in part, the banking system's long-standing structural weaknesses-such as thin capital buffers and weak profitability-which, according to Fitch Ratings' forecast, will be more adequately addressed over the longer term.
The much improved economic conditions and the banking system's performance have also been reflected through Moody's decision to upgrade Vietnam's outlook to positive.
Vietnamese banks, thus, will reap the benefits from a strong economic growth and enhanced institutional capabilities. On this basis, Moody's placed the ratings of the following banks on review for upgrade, including: ABBank, ACB, Vietcombank, Military Bank, SHB, SacomBank, VietinBank, VIB, and Techcombank.
All these banks will also be under consideration to upgrade their baseline credit assessment (BCA) and counterparty risk assessment (CRA) ratings.
As of October 31, 2017, the total assets of the banking sector reached an all-time high of VND9,400 trillion (US$412 billion), up 10.87% compared to the beginning of the year, according to the State Bank of Vietnam.
In 2017, the after-tax profit of the banking sector increased by 44.5% over 2016, stated the 2017 financial report of the National Financial Supervisory Commission (NFSC). The return on assets (ROA) and return on equity (ROE) ratios are higher than in the previous year, reaching 0.69 and 10.2%, respectively (against 0.56 and 8.05% in 2016).
