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Banking & Finance

Bank assets on the rise

Released at: 17:37, 17/11/2014

Bank assets on the rise

The total assets of credit institutions have increased to varying degrees.

Total assets in Vietnam’s banking sector as at the end of September stood at more than VND6,160 trillion ($289.5 billion), an increase of 6 per cent since last December and 1.6 per cent against August, and is the highest amount ever recorded.

State-owned commercial banks such as Agribank, Vietinbank, Vietcombank, and BIDV saw assets rise by a total of VND58.6 trillion ($2.75 billion) in September, contributing 60 per cent to overall growth. Assets have increased 6.12 per cent since the end of 2013, the highest on record, while charter capital increased by 5 per cent compared to January, reaching more than VND134 trillion ($6.3 billion).

Joint stock commercial banks followed, with assets increasing by VND31 trillion ($1.46 billion) in September and 5.66 per cent since December 2013. Increases to charter capital, however, have been less than 1 per cent since January.

Conversely, the total assets of joint venture banks (JVBs) and foreign banks have fallen 1 per cent since the end of 2013, to VND698.4 trillion ($32.83 billion). The total assets of financial leasing companies also fell, by 3.7 per cent, to VND63 trillion ($2.96 billion). Compared to August, however, the situation has actually improved.

The Return on Assets (ROA) and Return on Equity (ROE) at State-owned banks are 0.36 and 4.56, respectively, while those of non-government owned banks (NGB) are 0.3 and 3.39. This suggests that SOBs are more efficient than NGBs. Meanwhile, JVBs and foreign banks have the highest ROA, of 0.45, but their ROE is 2.89, the lowest in the sector.

The Capital Adequacy Ratio in the sector is 13.4 per cent, with that at joint-stock banks standing at 12.5 per cent, or higher than the 9 per cent requirement of the State Bank of Vietnam. Credit rate to mobilization capital has declined, from 83 per cent in August to 82.7 per cent.


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