Vietnam Banks Cautiously Announce Bad Debt Ratios
Commercial banks in Vietnam have cautiously announced their bad debt ratio despite comfortably publicizing profits and other business indicators.
Few among tens of banks which announced earning results by the end of November have included the ratio of bad debts, which were lowest at 0.6% and highest at 2.94% at domestic joint stock lenders.
Among them, Saigon Thuong Tin Commercial Joint Stock Bank (STB-Sacombank) reported low bad debt ratio at 0.68% in November on total outstanding loans of nearly VND56 trillion and Techcombank below 1.95% on VND42 trillion.
The State Bank of Vietnam, the country’s central bank, said bad debt ratio of foreign credit institutions in the country were below 1% of their total outstanding loans by end-October.
As of Oct 31, their total deposits and total outstanding loans were up 17.8% and 14%, respectively, as compared to last year-end.
Of which, foreign banks’ branches and 100%-foreign invested banks reported satisfactory business results with a combined pre-tax profit of over VND2.6 trillion and the bad debt ratio accounted for only 0.6%.
As for joint venture banks, the total outstanding loans increased 34.3% against the end of 2008 and the bad debt ratio accounted for 1.8% on total outstanding loans. (Labor)
Vietnamese
