Which bank is maintaining the bad debt coverage ratio...

First of all, it can be seen that at the end of the first quarter of 2025, many banks witnessed a significant increase in bad debt ratio compared to the beginning of the year. The main reason is still due to the instability of the global trade market, the real estate market, restructured debts in 2024 and tax and monetary policies.

According to BIDV Chairman Phan Duc Tu, asset quality will continue to be a top priority in 2025, in the context of global trade fluctuations that may affect the cash flow of export enterprises. When a business's revenue is disrupted, its ability to repay bank loans will be affected, leading to an increased risk of bad debt.

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Another aspect, according to MBS Securities experts, is that bad debt risks in 2025 may arise more from the retail banking sector – which is currently the main driver of credit growth – than from corporate credit. MBS forecasts that provisioning costs of the banking group they monitor will increase by an average of 16.9% over the same period this year.

According to FiinRatings, banks with higher ratios of bad debt, potentially risky debt and restructured debt according to Circular 02/2023/TT-NHNN than the industry average will continue to face great pressure on credit risk control. This pressure not only affects profitability but also requires banks to strengthen provisions and enhance risk management capacity to protect their balance sheets.

Accordingly, bad debt has increased again, specifically: In the latest report, analysts of SSI Securities said that in the first quarter of 2025, the bad debt formation rate of banks in the research scope increased to 2.46% (compared to 0.55% in the fourth quarter of 2024) and nearly reached the peak of 2.58% in the first quarter of 2023. At the same time, overdue loans increased by 11.6% compared to the previous quarter, coming from both Group 2 debt (up 2.8% compared to the previous quarter) and bad debt (up 20.4% compared to the previous quarter).

According to statistics from Wichart, by the end of March 31, 2025, the average bad debt ratio of 27 listed banks reached 2.16%. Some banks with notable bad debt ratios include ABBank (3.8%), BVBank (3.43%) and SaigonBank (3.28%).

However, many banks still maintained bad debt ratios below 2% and bad debt coverage ratios lower than the same period, with a few banks maintaining coverage above 100%. Names with bad debt ratios below 2% include state-owned giants and some private banks such as SeABank (1.84%), LPBank (1.73%), BacA Bank (1.26%), and Techcombank (1.17%).

In addition, by the end of the first quarter of 2025, the total risk provisions of the listed banking group increased by only 2.33% compared to the end of 2024, reaching VND 212,460 billion - an increase much lower than the bad debt growth rate of nearly 17%. As a result, the bad debt coverage ratio of the whole system decreased sharply in the first quarter, from 91.4% to 80%.

Accordingly, out of 27 listed banks, 21 banks recorded a lower bad debt coverage ratio compared to the same period. Currently, only a few banks have maintained a coverage level of over 100%, such as Vietcombank, VietinBank and Techcombank. Notably, Vietcombank continues to lead in this safety index with a coverage ratio of up to 216.11%./.

Source: https://baodaknong.vn/ngan-hang-nao-dang-duy-tri-duoc-ti-le-bao-phu-no-xau-tren-100-252308.html