The State Bank of Vietnam (SBV) has announced some basic indicators in the operation of the system of credit institutions (CIs) in 2018.
Accordingly, by the end of December 2018, the total assets of the system reached 11,060 trillion dong, up by 2.4 percent compared to November and up by 10.62 percent compared to the figure recorded in the end of 2017.
In particular, the total assets of state-owned commercial banks (including Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank), Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank), Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank), Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV), Vietnam Construction Bank, Global Petroleum Bank, and OceanBank) still accounted for the highest proportion (43.95 percent) with nearly 4,900 trillion dong but recorded the slowest growth among the bank groups with only 6.42 percent increase compared to the end of 2017.
The assets of private joint stock banks increased by 13.07 percent to nearly 4,600 trillion dong, while joint venture banks and foreign banks also achieved a growth of 19.12 percent in assets, reaching 1,100 trillion dong.
The equity of the entire system continued to slightly increase in December. Specifically, by the end of December 2018, the equity of the entire system reached more than 806.1 trillion dong, up by 2.6 percent compared to November and up by 12.89 percent compared to the end of 2017.
The main contribution to this growth was the equity increase of 16.36 percent of the group of private joint stock banks, reaching nearly 338.2 trillion dong; and 14.82 percent of the group of joint venture banks and foreign banks, reaching nearly 162.9 trillion dong. Meanwhile, the equity increase of the group of state-owned banks was only 5.48 percent, reaching nearly 268.6 trillion dong.
In terms of charter capital, the group of state-owned banks had almost no change in the past year with 147.89 trillion dong. Meanwhile, the charter capital of private joint stock banks rose by up to 24.42 percent to 267.2 trillion dong, while that of joint venture and foreign banks was 113.4 trillion dong, up by 3.49 percent, and of finance and financial leasing companies was 26.4 trillion dong, up by 17.24 percent compared to the end of 2017.
The size of charter capital and equity of state-owned banks by the end of 2018 was much lower than private joint stock banks but the total assets were higher. This made their minimum Capital Adequacy Ratio CAR) to reach only 9.52 percent in the end of 2018, much lower than the 11.24 percent of private joint stock banks.
The ratio of short-term funds used for medium and long-term lending of the entire system by the end of the year was recorded at 28.41 percent, in which, that of state-owned banks was 30.7 percent, of private joint stock banks was 32.67 percent, and of finance and financial leasing companies was 34.9 percent.
Meanwhile, regarding the profitability of banks, data updated to the end of the third quarter of 2018 showed that the highest Return on Assets (ROA) belonged to the group of finance and financial leasing companies with 3.02 percent, followed by ROA of Banks for social policies with 1.02 percent.
The ROA of state-owned banks was fairly low at 0.52 percent, only above cooperative banks’ with 0.42 percent and lower than the system’s average of 0.7 percent. The ROA of private joint stock banks was 0.76 percent, and of joint venture and foreign banks was 0.88 percent.
Regarding the Return on Equity (ROE) ratio, the group of finance and financial leasing companies also took the lead with 13.83 percent, followed by the people’s credit funds with 12.95 percent.
The ROE of state-owned banks was 10.21 percent, and of private joint stock banks was 9.88 percent, higher than the average ROE of the system which was 9.06 percent.
