Big 4 banks represent 41.9% of total credit, 50% of total deposits

Customers make transactions at a Vietcombank office in Hà Nội. The Big 4 banks pumped a total of more than VNĐ684.8 trillion into the economy in 2023. VNA/VNS Photo

HÀ NỘI — Việt Nam’s four largest commercial banks – Vietcombank, BIDV, Agribank and VietinBank (the Big 4) – in 2023 accounted for 41.9 per cent of total outstanding loans and about 50 per cent of the total deposits of the country’s banking system.

According to the latest data from the State Bank of Vietnam (SBV), by December 31, 2023, credit increased by about 13.71 per cent compared to the end of 2022, not significantly lower than the 14.18 per cent increase of the previous year.

In 2023, credit had a slow increase in the first quarters, and even saw a decrease compared to the previous month in July. As of September 30, credit growth only reached about 7 per cent.

However, credit began to slightly improve from the end of the third quarter and surged impressively in the last quarter thanks to drastic efforts in credit growth management by the SBV.

Contributing a significant part to the credit growth of the entire economy in 2023 were the efforts of the Big 4 banks, which are four State-owned banks with total assets, deposits, loans and profits that always lead the country’s banking system.

​Accordingly, the Big 4 banks pumped a total of more than VNĐ684.8 trillion into the economy in 2023, equivalent to 41.9 per cent of the outstanding loans of the entire economy. The largest contribution belonged to BIDV, with nearly VNĐ255.8 trillion, corresponding to credit growth of 16.66 per cent.

VietinBank followed with credit growth of 15.6 per cent, equivalent to nearly VNĐ200 trillion.

Vietcombank and Agribank recorded lower credit growth rates of 10.6 per cent and 7.4 per cent, respectively, equivalent to nearly VNĐ122.6 trillion and VNĐ106.8 trillion, respectively.

In 2023, the raised capital of the Big 4 banks increased by 13 per cent or nearly VNĐ778.9 trillion against the previous year to VNĐ6.7 quadrillion.

As the majority of raised capital is in the form of deposits, it can be estimated that the Big 4 banks accounted for about 50 per cent, or VNĐ13.5 quadrillion, of the total deposits of the entire economy by the end of 2023.

Specifically, BIDV in 2023 raised total capital of VNĐ1.89 quadrillion, an increase of 16.4 per cent compared to the end of 2022, surpassing Agribank to lead the Big 4 group.

Agribank dropped to the second position in terms of capital raising, with VNĐ1.88 quadrillion, up 9.8 per cent against the previous year.

The remaining giants VietinBank and Vietcombank in 2023 raised VNĐ1.52 quadrillion and VNĐ1.41 quadrillion, respectively, an increase of 13.7 per cent and 12.9 per cent compared to 2022. — VNS