Compiled from quarter 1/2020 financial statements of 25 banks, total deposits of customers in the first three months increased by 0.32%, reaching over 5.94 quadrillion dong. This increase is much lower than the same period in previous years. In which, 5 out of 25 banks showed the decline in deposits, including Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Military Commercial Joint Stock Bank (MB MBBank), Vietnam Export Import Commercial Joint Stock Bank (Eximbank), Tien Phong Commercial Joint Stock Bank (TPBank), and Saigon Bank for Industry and Trade (Saigonbank).
BIDV is still the bank with the highest deposits, reaching over 1.1 quadrillion dong as of March 31, 2020, but has declined by more than 13.8 trillion dong, or a decrease of 1.24 percent compared to the beginning of the year.
Meanwhile, deposits at MBBank fell by nearly 32 trillion dong to 240.737 trillion dong, or 11.7 percent lower than the beginning of the year. The reason is that the group of corporate customers withdrew money, deposits of economic organisations at this bank decreased by 24.5 percent to more than 115.45 trillion dong. Meanwhile, individual deposits still grew by 4.6%.
Among the top 10 banks with the largest deposits, except for BIDV and MBBank, the remaining banks only increased slightly, such as VietinBank increased by 0.33%, Vietcombank by 0.6%, and VPBank by 0,83%.
While these banks have decreased their deposits or only slightly increased, this sector at some other banks have increased sharply, mainly in small banks.
In terms of growth rates, the two banks with the strongest deposit growth in the first three months were Nam A Commercial Joint Stock Bank (Nam A Bank) and Bac A Commercial Joint Stock Bank (Bac A Bank), respectively increasing by nine percent to 77.096 trillion dong and 8.3 percent to 82.476 trillion dong.
In terms of amount, Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank) and HCM City Development Joint Stock Commercial Bank (HDBank) are the two most attractive banks. In particular, deposits at LienVietPostBank grew by more than 7.1 trillion dong (equivalent to 5.23%) to over 144 trillion dong; deposits at HDBank increased by over 6.8 trillion dong (equivalent to 5.4%) to nearly 133 trillion dong.
The reason for the slow increase in deposits in the first months of the year is probably the income of individuals and the revenue of businesses which are affected by Covid-19 pandemic. Payment deposits at large banks such as Vietcombank, VietinBank, BIDV, MBBank, and Techcombank have all decreased. Not to mention before the Lunar New Year holiday (right in January of the solar calendar), businesses also have to withdraw money to pay salaries to employees and people need cash for Tet spending.
Besides, deposit interest rates have dropped sharply compared to the beginning of the year. Not only the interest rates for less than six month terms but also the long term rates decreased due to the new regulations on the ceiling interest rates. The number of banks that list interest rates above eight percent per year is now only counted on the fingers, and mostly small banks.
