Mon. Jun 17th, 2024

Figures released by the State Bank of Vietnam have shown that at the
end of 2012, the total assets of the entire domestic banking system
recorded a growth of 2.54 percent compared with 2011.

It meant that last year’s total for the entire system rose by nearly 126 trillion VND (6 billion USD).

The data also shows that most of these assets were contributed by
State-owned commercial banks, which saw a rise of 232 trillion USD (11
billion USD), or 11.78 percent.

In contrast, the total assets of joint stock banks declined 102 trillion VND (4.8 billion USD) compared with 2011.

The State Bank also said that the equity of the banking system rose
more than 35 trillion VND to nearly 8.97 percent. Compared with 2011,
the equity capital of most credit institutions increased.

However, financial companies have seen both equity and charter capital
decrease compared to 2011. Figures from commercial banks included the
total charter capital of credit institutions reached 392 trillion VND by
the end of last year, a rise of 11.24 percent.

The year 2012 was
considered a turbulent and challenging period for the entire banking
sector as many issues arose relating to credit quality, bad debt and
cooled credit. The banking system witnessed soaring bad debts while
profits declined dramatically.

According to a source from the
State Bank, the total banking profit last year stood at 28.6 trillion
VND, a decrease of nearly 50 percent compared with 2011. While the
profits of large scale state-run commercial banks remained stable,
profits of join stock banks are estimated to have dropped by half.

Last year, Return on Assets (ROA) and Return on Equity (ROE) of the
banking system reached 0.79 percent and 10.34 percent respectively.-VNA

By vivian