Vietnam Bank for Agriculture and Rural Development (Agribank)’s consolidated Q1/ 2019 financial statements said that at the end of March 2019, the bank’s internal bad debt was 19.824 trillion dong, an increase of 3.384 trillion dong, equivalent to an increase of more than 20 percent compared to the beginning of the year. Non-performing loan (NPL) ratio on total outstanding loan from 1.63 percent at the beginning of the year increased to 1.93 percent.
In particular, all three groups of bad debts increased. Group 3 (sub-standard debts) increased by 60 percent to 4.924 trillion; Group 4 (doubtful debts) increased by 15 percent to 4.252 trillion dong; Group 5 (potentially irrecoverable debts) increased by 10 percent to 10.648 trillion dong. Potentially irrecoverable debts accounted for 54 percent of the total bad debt structure.
While internal NPLs increased, bad debt at Vietnam Asset Management Company (VAMC) had more positive changes. Specifically, the number of special bonds of VAMC decreased by 28 percent to 5.617 trillion dong. In particular, the provision amounted to 6.472 trillion dong. Special bond balances decreased to 855 billion dong.
At the end of March, Agribank’s total assets were 1.3 quadrillion dong, up 1.6 percent compared to the beginning of the year. In particular, customer loans reached 1.027 quadrillion dong, up 2.18 percent. Customer deposits increased by 2.07 percent to 1.126 quadrillion dong.
Agribank had a pre-tax profit of 3.108 trillion dong in the first three months, 2.5 times higher than the same period of 2018.
Specifically, total operating income increased by 21 percent, reaching nearly 13 trillion dong. Profit from foreign exchange and other activities increased the most, increasing by 241 percent and 46 percent, gaining 263 billion dong and 1.532 trillion dong. Meanwhile, operating expense increased by 22.55 percent to 5.782 trillion dong. Risk provision cost decreased 14 percent to 4.085 trillion dong.
