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‘The big five’ in Vietnam’s banking system

The big five are state -owned banks Agribank, BIDV, VietinBank and Vietcombank, and Saigon Commercial Bank (SCB), a joint stock bank with the fifth largest total assets in the system.

By the end of the second quarter of 2018, the Bank for Investment and Development of Vietnam (BIDV) had total assets of VND1,268 trillion, staying firmly in the first position in the banking system in total assets.

The second position belongs to Agribank with VND1,197 trillion and the third position to VietinBank, with VND1,131 trillion.

SCB is the fifth largest bank with total assets of VND477.591 trillion, higher than other joint stock banks, including Sacombank (VND400.686 trillion), Asia Commercial Bank or ACB (VND309.968 trillion), SH Bank (VND303.929 trillion) and Techcombank (VND300.404 trillion).

SCB also ranks fifth in the system in terms of outstanding loans and deposits with VND298.381 trillion and VND362.929 trillion, respectively. The figures are much higher than that of the other four big joint stock banks.

However, of the five top banks, Agribank has the biggest amount of deposits, VND1,053 trillion, followed by BIDV with VND964,542 trillion, while VietinBank and Vietcombank are third and fourth, respectively.

Regarding lending, BIDV is leading in outstanding loans, with VND929.167 trillion, followed by Agribank VND925.217 trillion, VietinBank VND858.976 trillion and Vietcombank VND606.052 trillion.

Vietinbank has the most charter capital, Vietcombank most profitable

As of June 30, 2018, VietinBank was the bank with the most charter capital, VND37.234 trillion, while the lower positions belong to Vietcombank with VND35.977 trillion, BIDV VND34.187 trillion and Agribank VND30.377 trillion.

However, analysts believe that the order may change as banks are rushing to raise their charter capital to satisfy the requirements of Basel II Accord.

BIDV, VietinBank and Vietcombank have urged the government to allow them to increase capital. If their proposal gets approval, their capital will soar sharply, leaving other banks, with VND11-25 trillion in charter capital, far behind.

Notably, Vietcombank is not the largest bank in terms of total assets and outstanding loans, but it can make the biggest profit.

The bank earned VND8.016 trillion worth of pre-tax profit in the first half of 2018. BIDV and Vietinbank had profits of over VND5 trillion, while Agribank had VND3.796 trillion.

SCB has lowest bad debt ratio

The Q2 finance report of SCB showed that the bank had bad debts accounting for 0.51 percent only of its total outstanding loan, of VND1.525 trillion.

Meanwhile, Agribank had the biggest NPL ratio, 2.18 percent (VND20.16 trillion).

According to the State Bank, the top five banks have total assets accounting for 48 percent of the entire banking system.