The banking sector has seen a booming year, with the rapid growth of both Hanoi-based banks and HCM City-base, the State Bank of Vietnam (SBV) said in its recent reported.
By the end of October, deposits with Hanoi-based banks jumped by 34.5 per cent to over VND326.6 trillion (US$20.4 billion) and outstanding loans rose by 37.4 per cent to over VND163.8 trillion, the SBV's Hanoi branch reported.
Long-term loans continued to expand at a fast pace, with big proportion to property projects.
Loan as bad debts accounted for 2.5 per cent of the total loans, down 0.3 per cent from last year. However, the ratio was much higher if based on international norms, some lenders in Hanoi said.
Meanwhile, HCM City-based banks had seen deposits rising by 55 per cent this year to VND442.5 trillion and outstanding loans by 51 per cent to nearly VND347 trillion.
Joint stock banks made up 46.3 per cent of the total deposits and 46.8 per cent of loans, followed by state-run banks with 35.3 per cent and 30.8 per cent, respectively.
Banks netted profits of more than VND9 trillion in the first nine months, up 42.6 per cent on year.
In the January-October period, they issued 650,629 new credit cards, bringing total number to 2.5 million at 917 branches and transaction offices in total.
SBV's HCM City office forecasted the city-based banks will have grown 35 per cent-37 per cent in deposits, 32 per cent-34 per cent in outstanding loans, and 35 per cent-40 per cent in earnings next year.
Currently, seven out of eight joint stock banks in Hanoi had a registered capital of between VND1 trillion and VND2 trillion. Four of them had to reduce loans to stock investors to below 3 per cent as required by the central bank. (Young People)
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