VietNamNet Bridge - As of September 30, the Bank for Investment and Development of Vietnam (BIDV) had taken the lead for bad debt among the three largest State-owned commercial banks of Vietnam, followed by the Bank for Foreign Trade of Vietnam (Vietcombank) with over VND7,100 billion and the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), with approximately VND4,700 trillion.



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According to a report on the three big banks, by September 30, the non-performing loan ratio (NPL) was 0.95% for VietinBank, 2% for Vietcombank and 2.16% for BIDV.

Vietcombank had a total of VND7,141 billion of bad debts, down by VND300 billion over the same period of 2014, accounting for 2% of the total outstanding loans. The potentially unrecoverable debt increased by 38%, from VND3,571 in the early year to VND4,938 billion billion, accounting for 69% of the total bad debt.

By September 30, Vietinbank’s bad debt was approximately VND4,700 trillion, equivalent to 0.95% of its outstanding loans, which stood at VND500 trillion.

Meanwhile, bad loans of BIDV was up to VND11,924 billion, an increase of nearly VND2,000 billion compared to 31/12/2014. In particular, potentially unrecoverable debts amounted to VND5,631 billion, accounting for nearly half of the total loans.

Bad debts of VietinBank and Vietcombank decreased slightly, while that of BIDV increased slightly compared with the end of 2014 (from 2.03 to 2.16%).

BIDV was merged with MHB and that may be partly the cause for the increase of its NPLs.

The total bad loans in the January-September period of the three largest commercial banks amounted to VND23,825 billion, up 11.2% compared with the end of 2014.

Of these, the potentially unrecoverable debt is VND13,254 billion, accounting for more than half of the total bad  loans.

BIDV earned before-tax profit of VND5,535 billion in nine months, up 24.5% over the same period of last year. After-tax profit was VND4,513 billion, up 27.7% over the same period last year.

For Vietcombank, the figures were VND4,648 billion and VND3,635 billion, respectively, 11% higher than the same period last year.

For VietinBank, the numbers were VND5,725 billion and VND4,461, up 4.4% over the same period of 2014.

Na Son