What is the ranking of total assets of Vietnamese banks today?

24-Aug-2019 Intellasia | Tri Thuc Tre | 6:02 AM Print This Post

Currently, 11 banks had total assets of over $10 billion, but also nearly 15 banks with total assets of less than 100 trillion dong. For nearly a decade, the scale of banks’ asset size changed dramatically.

2020 is considered to be of great significance to the banking system. For many banks, this is the last year ending the period of restructuring bad debt which was proposed five years ago. 2020 is also the deadline for 10 pilot banks to meet Basel II standards in Circular 41/2016-TT-NHNN. This is also a time for banks to enter a new race, with further goals such as listing in the international market.

For nearly a decade, from the period of strong development, crisis of bad debt, process of restructuring, the position of banks in the system had many big changes.

When considering the scale of assets, according to the statistics of the State Bank of Vietnam (SBV), by the end of April 2019, the total assets of the credit institution system reached 11.21 quadrillion dong. Compared to 10 years ago, this figure was estimated to increased more than four times.

According to statistics, as of June 30, 2019, total assets of 29 commercial banks (not including three “zero-dong” banks and DongA Joint Stock Commercial Bank (DongA Bank), Vietnam Public Joint-stock Commercial Bank (PVcomBank), Bao Viet Joint Stock Commercial Bank (BaoVietBank)) reached over 9.6 quadrillion dong.

11 banks had total assets of over $10 billion

In particular, four state-owned commercial banks (Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Vietnam Bank for Agriculture and Rural Development (Agribank), Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank)) exceeded 1 quadrillion dong. BIDV and Agribank reached this milestone since 2016, VietinBank was 2017 and Vietcombank just reached this milestone in 2018.

Total assets of these four banks reached over 5 quadrillion dong, increased nearly four times in 10 years and accounted for nearly 45 percent of the total assets of the whole credit system. Compared to 10 years ago, in terms of credit scale and deposit size in the economy, the influence of these four banks remains in a position where it is difficult for private banks to replace.

In addition to the above 4 banks, there were seven other banks that had assets of over $10 billion (equivalent to over 232 trillion dong), respectively Sai Gon Joint Stock Commercial Bank (SCB), Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank), Military Commercial Joint Stock Bank (MBBank), Vietnam Technological and Commercial Joint-Stock Bank (Techcombank), Asia Commercial Joint Stock Bank (ACB), Saigon Hanoi Commercial Joint Stock Bank (SHB) and Vietnam Prosperity Joint-Stock Commercial Bank (VPBank).

In particular, SCB was a private bank with the largest total assets, reached over 530 trillion dong, equal to half of the four state-owned banks. Following that, Sacombank and MBBank respectively had total assets of more than 402 trillion dong and 439 trillion dong. The remaining four banks had total assets of over 300 trillion dong.

HCM City Development Joint Stock Commercial Bank (HDBank) had total assets of over 210 trillion dong. If maintaining the current development momentum, the bank will soon join the $10 billion “group” in the future.

The whole system had 35 commercial banks, but the size division was huge. At the present time, there were still nearly 15 banks with total assets below 100 trillion dong. Banks like Saigon Bank for Industry and Trade (Saigonbank) and Petrolimex Group Commercial Joint Stock Bank (PGBank) were only over 21 trillion dong and 28 trillion dong respectively, which was only 1/65 time the largest banks.

How the top 10 changed dramatically?

Over the last 10 years, the ranking of banks’ total assets changed dramatically. There were names that disappeared after the M&A period and some banks suddenly jumped up to the high rankings after the merger.

At the beginning of 2010, 10 biggest banks were Agribank, BIDV, Vietcombank, VietinBank, ACB, Sacombank, Techcombank, MBBank, Vietnam Export Import Commercial Joint Stock Bank (Eximbank) and SCB.

At the end of 2009, Agribank’s total assets at that time were over 480 trillion dong, far from BIDV with nearly 300 trillion dong. However, by the end of 2018, BIDV officially exceeded Agribank when it reached 1.3 quadrillion dong.

SCB from the last position jumped to become a private bank with the largest total assets (replaced ACB). The reason was that in 2011, SBV allowed the voluntary merger of three banks of SCB, Ficombank, TinNghiaBank.

With only total assets of over 27 trillion dong in 2010, VPBank rapidly grew to climb to the Top 10. Eximbank dropped to 14th from the nineth position.

Among the top 10 banks, VPBank was also the fastest growing bank in the last 10 years (total assets increased by more than 12.5 times). Meanwhile, banks such as Agribank and ACB grew much slower, only 2.7 and 2.1 times higher in a decade.

Each bank had its own story in the development process over the past 10 years, and the change of bank positions was obvious. This change in the future will probably continue, because at the moment, the advantages and difficulties of each bank have been different.

Many large banks will be forced to grow slowly due to problems with bad debts and capital constraints. Private banks have strong charter capital potential, new and different directions will be more and more breakthrough.


Category: Finance, Vietnam

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