Many 'big guys' increase real estate loans

The State Bank of Vietnam (SBV) said that by the end of 2023, outstanding loans for the real estate sector will be about VND2.75 trillion, an increase of about 6.75% compared to the beginning of the year.

Of which, real estate business loans increased by 22%, accounting for about 26% of total outstanding loans in the real estate sector.

A series of solutions by the Government and the State Bank of Vietnam in recent times have been effective, creating conditions to remove difficulties for real estate projects. Thanks to that, the lending rate for real estate business activities at some banks such as: HDBank, Techcombank, VPBank, SHB , MSB, MB, TPBank increased compared to the end of 2022.

Meanwhile, banks that recorded a decrease in real estate lending include: VIB , Kienlong Bank, PGBank, VietBank, BVBank.

Techcombank has the largest proportion of real estate business loans to total outstanding loans among banks that publicly disclose details, with a proportion of 35.22% as of December 31, 2023, while the same period last year was 26.44%.

VPBank ranked second with a real estate lending ratio of 19%, while at the end of 2022 it was 14.39%.

Real estate lending at VietBank also reached 19%, but this rate decreased by 1% compared to the end of 2022.

Some other banks also increased their real estate lending rates sharply, such as SHB from 8.33% to 15.45%; MB from 4.91% to 7.49%.

MSB recorded a slight increase from 8.75% to 8.96% of total outstanding loans, TPBank increased from 6.31% to 7.12%, while this ratio at Saigonbank remained at 6%.

On the contrary, some banks recorded a decrease in this ratio. BVBank recorded a slight decrease from 14.4% to 13%, PGBank decreased from 8% to 6%, KienLong Bank decreased from 6.6% to 4% and VIB decreased from 0.86% to 0.63%.

How do banks divide their lending market share?

Also according to the financial reports of 27 listed banks, customer loans in this group last year reached VND9.8 million billion, an increase of 18% compared to 2022.

This figure does not include loans from Agribank and unlisted banks. However, according to Agribank's preliminary report, the bank's customer loans reached about VND1.55 trillion.

Including Agribank, the total outstanding loans in 2023 of 28 commercial banks will reach VND 11,303 trillion, an increase of 15.95% compared to 2022.

In terms of customer loan growth rate, VPBank leads with an increase of 37%. This rate at MB and HDBank is 32%, TPBank and VietBank 27%, while MSB and Techcombank are 24% and 22% respectively.

In terms of absolute numbers, the group of state-owned commercial banks including BIDV, Agribank, VietinBank and Vietcombank leads in the amount of capital supplied to the economy.

Of which, BIDV lent customers 1.74 quadrillion VND, up 17%; Agribank 1.55 quadrillion VND, up 7.4%; VietinBank 1.46 quadrillion VND, up 15.54%; Vietcombank lent 1.25 quadrillion VND, up 10.75%.

In the group of joint stock commercial banks, MB, Techcombank, VPBank, ACB, Sacombank, SHB are the banks in the Top 10 banks that lend the most to customers.

Of which, MB lent 578,000 billion VND, Techcombank 503,000 billion VND, VPBank 496,000 billion VND, ACB 481,000 billion VND, Sacombank 472,000 billion VND, SHB 425,000 billion VND.

According to the State Bank of Vietnam's report, credit growth in 2023 is 13.5%. This is a great effort by the whole industry in the context of sluggish credit growth in the first three quarters of the year.

In the context of lending interest rates being at their lowest level in recent years, the State Bank of Vietnam has assigned a credit growth target of 15% to banks from the beginning of 2024.

CUSTOMER LOANS IN 2023 OF 28 COMMERCIAL BANKS
STT BANK CUSTOMER LOANS (unit: million VND) GROWTH COMPARED TO 2022 (unit: %)
1 BIDV 1,740,391,368 16.95
2 AGRIBANK 1,500,000,000 (provisional) 7.40
3 VIETINBANK 1,460,764,608 15.55
4 VIETCOMBANK 1,258,405,170 10.76
5 MB 577,862,946 32.78
6 TECHCOMBANK 502.022.401 22.04
7 VPBANK 496,409,738 37.25
8 ACB 481,276,138 17.34
9 SACOMBANK 471,855,680 10.12
10 SHB 424,701,173 16.34
11 HDBANK 327,317,823 32.51
12 LPBANK 275,430,884 16.95
13 VIB 266,345,545 14.83
14 TPBANK 205,262,092 27.50
15 SEABANK 176,077,943 17.99
16 MSB 146,983,622 23.82
17 OCB 144,298,541 20.45
18 NAM A BANK 141,438,441 18.32
19 EXIMBANK 140,448,924 7.62
20 BANK 99,853,975 6.09
21 ABBANK 96,360,678 20.55
22 VIETBANK 80,754,430 26.91
23 VIET A BANK 69,059,041 10.48
24 BVBANK 57,768,233 13.58
25 NCB 55,344,259 15.97
26 KIENLONG BANK 51,783,052 15.84
27 PGBANK 35,335,012 21.63
28 SAIGONBANK 19,967,377 6.70
TOTAL: 11,303,519,094