Joint stock commercial banks have already overtook their state-owned counterparts in the race to expand market share in HCM City after ending up the year of 2007 with annual sustainable growth of around 60-120 per cent.
The state-owned commercial banks, meanwhile, reported growth of 20 per cent only.
Last year, joint stock banks mobilized VND204.4 trillion (US$12.7 billion), or 46.9 per cent of the city’s mobilized capital, against the 35 per cent achieved by State-owned commercial banks.
One year ago, State-owned commercial banks mobilized VND112.9 trillion, or 43.5 per cent of the city’s total mobilized capital, compared with VND99 trillion or 35 per cent from the joint stock banks.
Joint stock commercial banks’ total lending until the end of this year is estimated to reach nearly VND159.4 trillion, or 45.9 per cent of the city’s total bank loans. The interest rate charged by State-owned commercial banks is, meanwhile, just 29.4 per cent.
A number of joint stock commercial banks, including An Binh – which has recently moved into the city – achieved lending growth rates of 400 per cent to 800 per cent over the previous year.
Banks reportedly earned pre-tax profit of VND9 trillion (US$562.5 million) in HCM City. Of that figure, joint stock commercial banks accounted for 48.1 per cent, while State-owned commercial banks accounted for 34.2 per cent.
Experts attributed the growth of joint stock commercial banks this year to their flexible policies and diversified investment.
Apart from attractive interest rates and promotional campaigns, joint stock banks have also introduced convenient services such as card and foreign-currency remittance.
Joint stock banks have also saved costs by investing in modern technology and staff training.
Meanwhile, experts said State-owned commercial banks had to deal with bad debts and were preoccupied with equalizations and restructuring.
Currently, 18 commercial joint stock banks have headquarters in the city with a combined capital estimated at VND24.4 trillion at year-end, up 43.1 per cent on-year
Sacombank tops the list with a charter capital of nearly VND4.5 trillion, followed by Eximbank and ACB with VND2.8 trillion and VND2.5 trillion, respectively.
Vietnamese
