The banking industry is in the top robust gainers on the stock market. The total gross profit of eight listed banks reached 12.144 trillion dong in the first six months of this year, accounting for 25 percent of the total profit of all listed firms (47.765 trillion dong).
However, together with this spectacular performance, the bad debt ratio of these banks is also quietly rising.
Regarding gross profit, taking the leading position in terms of gross profit amongst listed banks was Vietnam Commercial Joint Stock Bank for Foreign Trade (Vietcombank-VCB) with 2.249 trillion dong, down 7 percent over the same period last year. This is a bulky profit amount while the lender earmarked up to 2.04 trillion dong for its credit risk provision fund, a twofold increase over the same period last year. Following VCB was Vietnam Commercial Joint Stock Bank of Industry and Trade (VietinBank-CTG) with a gross profit of 2.144 trillion dong, down 26 percent on year.
Most listed banks posted year-on-year gross profit growth. Vietnam Export Import Commercial Joint Stock Bank (Eximbank-EIB) and Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank-STB) together posted year-on-year gross profit growth of 12 percent in H1/2012. Notably, Military Commercial Joint Stock Bank (MB-coded MBB) reported its on year growth of up to 63 percent to gain 1.402 trillion dong.
In Jan-Jun, the net interest income of almost listed banks increased compared to the same period last year. The net interest income of these banks was mainly from credit and saving activities.
Particularly, CTG’s net interest income, although falling slightly from the same period last year, reached the highest of 9.039 trillion dong, far exceeding from other lenders.
Capital mobilisation activities of banks also posted on year growth, except CTG with a slight fall of 2%. Commercial JS Bank for Investment and Development of Vietnam (Bidv) reached the biggest deposits with 284.124 trillion dong.
At the same time, Bidv also posted the highest total outstanding loans of 323.117 trillion dong amongst listed banks.
Besides, bad debt ratio of banks is also on the rise. VCB posted the highest bad debt ratio amongst listed banks, at 3.5 percent while Bidv’s bad debt ratio was 2.97%.
STB posted the lowest bad debt ratio with 1.29%.
Amongst listed banks, only MBB saw a 13 percent decline in the irrecoverable debt ratio, to 453 billion dong.