Customers make transactions at a Techcombank’s office in Hanoi. (Source: cafef.vn)

Despite difficulties of the market, many domestic commercial banks increased capital in 2024, bringing the total charter capital of 28 banks as of December 31, 2024 to 823.52 trillion VND (33 billion USD), an increase of 15.23% compared to the end of 2023.

Of 28 banks, 16 banks had a charter capital of more than 1 billion USD, one more than in 2023, according to the banks' financial reports.

Up to 20 out of 28 commercial banks increased their charter capital in 2024. Of which, two banks, including NCB and Techcombank, recorded the strongest growth in charter capital compared to 2023, at 110% and 100%, respectively.

Specifically, NCB's charter capital surged from 5.6 trillion VND to 11.78 trillion VND, while Techcombank's charter capital increased sharply from more than 35.2 trillion VND to nearly 70.66 trillion VND. The rise helped NCB improve its position from the 23rd in 2023 to within the top 20 banks with the largest charter capital in 2024.

Techcombank also took a big step forward, from 11th to second place among the banks with the largest charter capital in the country’s banking system.

In addition to NCB and Techcombank, other banks with the highest growth rate in terms of charter capital includes VietBank (up 49.46%), PGBank (up 40%), MSB (up 30%) and Nam A Bank (up 29.73%).

Although VPBank did not increase its charter capital last year, it still maintained its position as the number one bank with a charter capital of nearly 79.34 trillion VND. Of which, 13 individual shareholders and 4 institutional shareholders hold 1% or more of VPBank's charter capital.

The top ten commercial banks with the largest charter capital currently include VPBank, Techcombank, BIDV with nearly 68.98 trillion VND (up 21%), Vietcombank with 55.89 trillion VND (unchanged), VietinBank with 53.67 trillion VND (unchanged), MB with 53.06 trillion VND (up 1.77%), Agribank with 51.62 trillion VND (up 25%), ACB with nearly 44.67 trillion VND (up 15%), SHB with 38.07 trillion VND (up 1.16%) and HDBank with more than 35.1 trillion VND (up 20.72%).

According to experts, the need to raise charter capital stems from requirements of improving the capital adequacy ratio (CAR), increasing the risk provision ratio, rising medium and long-term capital sources and promoting investment in technology.

Banking analyst Nguyen Tri Hieu said though the CAR of Vietnamese banks has improved, it still hasn't reached international standards and the average level comparative with the banking industry in the region, with the CAR of Vietnamese banks still below that of other banks in the region.

Hieu said, many banks in Vietnam have not fully implemented the pillars of international banking standard Basel II, while some countries in the region have applied Basel III or part of it, so increasing charter capital is considered necessary to improve financial capacity and ensure the stability of the Vietnamese banking system.