Although many banks have lowered the proportion of real estate lending, four banks in the statistics still have the ratio of real estate lending on total outstanding loans exceeding 10 percent, including Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), Vietnam Technological and Commercial Joint Stock Bank (Techcombank), Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank), and Kien Long Commercial Joint Stock Bank (Kienlongbank).
Statistical data presented in the audited financial statement and quarterly report in the fourth quarter of 2017 of 20 banks showed that three banks provided summarised financial reports, including Orient Commercial Joint Stock Ban (OCB), Nam A Commercial Joint Stock Bank (NamABank), and Saigon Commercial Joint Stock Bank (SCB). Notably, OCB has only published summarised audited financial report for many years.
Of the 17 banks providing detailed financial reports, Viet A Commercial Joint Stock Bank (VietABank) presented its lending structure by sector rather briefly. The bank only included data for four major industries which accounted for 32.54 percent of the total outstanding loans, including agriculture and forestry, trade, manufacturing and processing; and the remaining were personal loans and lending to other sectors.
However, the analysis of the lending structure by customers of VietABank showed that personal loans and other customers only accounted for 13.72 percent of the total outstanding loans. This means that over 50 percent of the total outstanding loans to economic organisations were not classified by VietABank in the notes to the financial report.
Similarly, Vietnam International Commercial Joint Stock Bank (VIB) only provided detailed credit data of four sectors, which accounted for 36.19 percent, and the 63.81 percent of the total outstanding loans were personal loans and lending to other sectors. In addition the notes to the lending by customers pointed out that 63.49 percent of the outstanding loans of VIB were for individual customers and other loans.
For the remaining 15 banks, as of December 31st 2017, the total outstanding loans to real estate sector reached over 163.160 trillion dong, up by about 2.033 trillion dong compared to 2016, accounting for over 4.3 percent of the total outstanding loans of these 15 banks. Two banks including Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) and Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) recorded insignificant outstanding real estate loans and that was presented with the data for other sector lending.
Concerning the data of 13 banks which presented the outstanding loans to real estate sector, the total average real estate lending accounted for 6.7 percent of the total lending to sectors and individuals, down compared to 2016 (7.9 percent).
The top five banks recording high proportion of lending to real estate business included Sacombank (17.6 percent), Techcombank (12.6 percent), LienVietPostBank (11.6 percent), Kienlongbank (10.1 percent), and Vietnam Prosperity Commercial Joint Stock Bank (VPBank, 8.5 percent).
Among these five banks, except for LienVietPostBank which saw slight increase in real estate lending, four other banks posted strong decline in the proportion of lending to real estate business. Particularly, VPBank managed to pull this ratio to below 10 percent instead of 11.7 percent in 2016.
Three other banks also recorded increase in the proportion of lending to real estate business but kept it under 10 percent, including An Binh Commercial Joint Stock Bank (ABBank), Hochiminh city Development Commercial Joint Stock Bank (HDBank), and Saigon Hanoi Commercial Joint Stock Bank (SHB).
Previously, BizLIVE has provided statistics on the short and long-term outstanding loans of 76 real estate firms listed on the stock market. As of June 30th 2017, this number reached 96.242 trillion dong.
