The financial statements of the first quarter (Q1) published by more than 10 banks recorded a sharp decrease in the deposits at the State Bank of Vietnam (SBV) and money and gold deposits at other credit institutions (CIs) in the same system.
Accordingly, these items fell by a few hundreds of billion dong at small banks to tens of trillion dong at big banks such as Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank), Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank).
In terms of deposits at the SBV, Vietnam International Commercial Joint Stock Bank (VIB) was the one that recorded the largest reduction of 84%. At the beginning of the year, the value of VIB’s deposits at the SBV was about 19.040 trillion dong, but this number dropped to 2.982 trillion dong by the end of Q1, less than one sixth of the value at the early year.
Seeing similar developments, the deposits at the SBV of Tien Phong Commercial Joint Stock Bank (TPBank) and Vietnam Prosperity Commercial Joint Stock Bank (VPBank) in the first three months of the year also fell by more than 58%. Similarly, Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank), Military Commercial Joint Stock Bank (MBBank), Southeast Asia Commercial Joint Stock Bank (SeABank) also recorded a more than half decline in the amount of deposits at the SBV.
Considering the absolute decrease, Vietcombank drew the largest amount of capital from the SBV from the beginning of the year, reaching over 18.114 trillion dong, down by 52%.
Among banks that have announced their financial statements, Asia Commercial Joint Stock Bank (ACB) and VietinBank did not follow this trend as their deposits at the SBV still increased by respectively 22 percent and one percent compared to the beginning of the year.
In addition to withdrawing a large amount of deposits at the SBV, banks also tended to withdraw capital from other CIs. In particular, VPBank withdrew 41 percent of the deposits at other CIs, equivalent to over 6.4 trillion dong from the beginning of the year.
The number at Vietcombank even soared to 65.665 trillion dong when the bank cut the deposits at other CIs by up to 35%. This is also the largest net deposit withdrawal in a quarter of Vietcombank in many years.
The same trend was also witnessed at SeABank and Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) with over 30 percent decline.
In contrast to the withdrawal of deposits from the SBV, VIB from the beginning of the year deposited an addition of over 1.6 trillion dong at other CIs.
Just a few banks increased deposits at other CIs from the beginning of the year, such as MBBank (up by 20%, including loans); Kien Long Commercial Joint Stock (Kienlong Commercial Joint Stock Bank (up by 16%, equivalent to 1.6 trillion dong; ACB (up by seven percent, equivalent to 1.4 trillion dong), and TPBank (up by six percent, up by 1.230 trillion dong).
The reduction of deposits at other CIs of banks led to the decline in CIs’ deposits at banks (liabilities) on the Q1 balance sheet.
In particular, SCB was the one that stood out of the trend of reducing deposits at the SBV and other CIs but recorded sharp fall in other CI’s deposits at the bank. Accordingly, this amount at ACB fell by up to 7.923 trillion dong, equivalent to 48%.
Vietcombank and VietinBank saw the largest decline in other CIs’ deposits from the beginning of the year. In particular, the amount of capital CIs deposited at Vietcombank decreased from over 71 trillion dong to 42.5 trillion dong, equivalent to a decline of 40%. This decrease at VietinBank was more than 10 trillion dong, down by approximately 12 percent of the total CIs’ deposits at the bank in the first three months of the year.
A similar trend was recorded at SeABank, LienVietPostBank, VPBank, etc. when other CIs withdrew trillions of deposits from these banks.
Military Commercial Joint Stock Bank (MBBank) was one of the few banks that posted a sharp rise in the deposits of other CIs. This item at the bank increased to 19.427 trillion dong over the beginning of the year, equivalent to 39%. The value of other CI’s deposits at MBBank is currently 32 trillion dong (11.7%) from the beginning of the year, while this number in the same period of last year increased by 2.288 trillion dong.
MBB was also among banks with the sharpest decline in customer deposits from the beginning of the year. This is the reason why the bank had to withdraw deposits at the SBV and accelerated capital mobilisation and borrowings from other CIs to offset the shortage mentioned in the above.
Statistics also pointed out that banks that mobilised less deposits from customers in Q1 tended to strongly withdraw their deposits at the SBV and other CIs for supplementation.
As at Vietcombank, the bank’s customer deposits in Q1 were only 5.6 trillion dong, up by 0.6 percent over the beginning of the year, while this number in the same period of 2019 was over 36 trillion dong, up by 4.5%.
Similarly, SeABank, LienVietPostBank, VietinBank, etc. all saw decline in customer deposits.
BIDV Securities Company (BSC) said that in the context of the complicated Covid-19 epidemic, banks are having to launch many large-scale credit packages with preferential interest rates. In order to have enough capital for these hundred of trillion dong credit packages, banks have to self-balance their liquidity and capital source to be ready to inject capital into the market.
