The total charter capital of credit institutions in late January increases by 0.7 percent compared to the end of 2023

Meanwhile, financial and financial leasing businesses and cooperative banks maintained the same charter capital as that at the end of 2023, reaching VND45.321 trillion and VND3.030 trillion, respectively. The charter capital of people’s credit funds was VND7.052 trillion, an increase of 0.98 percent over the end of 2023.

These took the total asset value of the entire banking system to more than VND19.545 quadrillion as of January 31, 2024, down 2.63 percent compared to the end of 2023. State commercial banks had a total asset value of over VND8.2 quadrillion (down 1.49 percent compared to the end of 2023), and joint-stock commercial banks had a total asset value of VND8.6 quadrillion plus (down 3.87 percent).

The ratio of loans to total deposits of the entire system was 77.87 percent. State commercial banks reached a ratio of 81.31 percent, and joint-stock commercial banks reached 80.88 percent. As of the end of January 2024, the minimum capital adequacy ratio (CAR) of credit institutions and branches of foreign banks, applied in accordance with State bank of Vietnam Circular 41/2016/TT-NHNN, reached 11.84 percent, with that of state commercial banks reaching 9.72 percent and that of joint-stock commercial banks reaching 11.89 percent.

A number of banks have set a target to increase their charter capital

A number of banks, including Vietcombank, have set targets to increase their charter capital. VietinBank has proposed that the competent authority allow it retain all of the 2023 profit and annual profits from 2024 to 2028 to increase its capital and expand lending. A joint-stock bank, Saigonbank, has been allowed by the State Bank to increase its charter capital by a maximum of VND308 billion through the issuance of dividend payment shares in 2024.

Bac A Bank has recently announced a 7.5 percent dividend payment in the form of shares, while NCB plans to issue 620 million shares to increase its charter capital by a maximum of VND6.2 trillion to VND11.8 trillion, and ACB will propose that its shareholders agree upon a plan for dividend payment in the form of shares.