According to statistics from 26 banks, by the end of September, the total bad debts of these banks were over 113 trillion dong, an increase of more than 15 trillion dong compared to the beginning of the year (equivalent to an increase of about 15%).
3 out of 26 banks with reduced bad debts in the first nine months were Vietnam Export Import Commercial Joint Stock Bank (Eximbank) (down 4.6%), Southeast Asia Commercial Joint Stock Bank (SeABank) (down 3.6%) and Saigon Bank for Industry and Trade (Saigonbank) (down 2.3%).
Meanwhile, bad debt increased sharply in many banks. For example, at An Binh Commercial Joint Stock Bank (ABBank), bad debts increased by 79 percent to 1.766 trillion dong, Nam A Commercial Joint Stock Bank (Nam A Bank) increased by 91 percent to 1.496 trillion dong. If the bad debt of NamABank grew and the outstanding loans also increased sharply (up 24%), then at ABBank, the outstanding loans decreased and the bad debts jumped.
Even in big banks including Techcombank, SHB, and MBBank, bad debts also rosed by over 20%. Specifically, in SHB, it increased by 39 percent to 7.227 trillion dong, at Techcombank increased by 32 percent to 3.704 trillion dong, MBBank increased by 30 percent to 3.73 trillion dong.
Or in BIDV, bad debts accelerated by 19%, equivalent to 3.634 trillion dong to 22.436 trillion dong at the end of September. Vietcombank increased by 22.5 percent to 7.625 trillion dong.
Bad debts at VietinBank and Sacombank increased slightly, respectively by 2.7 percent and 2.9 percent to 14.066 trillion dong and 5.809 trillion dong.
Accordingly, the five joint stock banks with the largest bad debts are BIDV, Agribank, VietinBank, VPBank, and Vietcombank. Compared to a year ago, Sacombank has been removed from this list, replaced by Vietcombank.
It can be seen that Sacombank’s efforts to improve asset quality and promote debt settlement have achieved impressive results. Compared to two years ago, this bank’s bad debt has been reduced by more than half.
In the structure of bad debts of 26 banks, the debt with the highest possible loss rate (57%), while doubtful debt is only 21%, substandard debt is 23%. Major banks such as BIDV, VietinBank, Vietcombank, SHB, Sacombank, and Techcombank all have high possible loss debt ratios (over 50%).
Although the number of non-performing loans has increased, the growth rate is much lower than the credit growth. Therefore, bad debt ratio has mostly had positive changes, and currently none of the 26 banks has bad debt ratio exceeding three percent. Statistics also show that, 12/26 banks have bad debt ratio (on total outstanding loans) at the end of September reduced compared to the beginning of the year. In which, the ratio at some banks including SeABank dropped sharply by 0.2 percentage points to 1.31%; Saigonbank decreased by 0.18 percentage points to 2.03%.
Banks with the lowest bad debt ratio (on total outstanding loans to customers) at the current system include ACB (0.67%), Vietcombank (1.08%), BacABank (0.72%), and Kienlongbank (1.07%).
Of course, bad debts have not fully reflected the problem of bad debts at banks. For example, although Sacombank has a bad debt balance of only 5.809 trillion dong (ranked 6th in the system), it has more than 35,000 bad debts at VAMC (the highest in the system). The same for SCB, the bank’s bad debt ratio is only 0.46%, but there are more than 28,000 VAMC special bonds and accrued interest, receivables of over 60 trillion dong (highest in the system).
