In terms of absolute balance, VPBank, VietinBank and BIDV are the three banks with the highest level of non-performing loans at the end of March.
According to statistics from the financial statements for the first quarter of 2022 of these 27 banks, the total balance of bad debts as of March 31, 2022 increased by 11% compared to the end of the previous year, reaching more than VND 109,600 billion.
VPBank continued to be the bank with the most bad debts in the first three months of 2022, up 11% compared to the end of last year, of which doubtful debt increased sharply by 30%, thereby pulling the bad debt ratio from 4.57% at the beginning of the year to 4.83%.
Of this debt, bad debt of its subsidiary, FE Credit, accounts for about 63%. For the parent bank, the bad debt balance increased by 20% to nearly VND 6,746 billion. NPL ratio also increased from 2.01% to 2.27%.
Coming out second in the ranking is VietinBank with a bad debt scale of VND 15,322 billion, up 7% compared to the end of last year. The “giant” BIDV also ranked right after that in the 3rd place with the amount of bad debt increasing slightly by 1% compared to the end of 2021, to VND 13,730 billion.
Among private banks, LienVietPostBank had a bad debt balance increased by 3.1%, from VND 2,863 billion to VND 2,953 billion, leading to the bad debt ratio increasing to 1.42%.
In addition, the list of top 10 banks with the largest bad debt balance in the first quarter of 2022 also includes Vietcombank, Sacombank, VIB, MB, SHB and ACB. The bad debt balance of these 10 banks alone is worth VND 82,608 billion, accounting for 75% of the total bad debt of the 27 listed banks.
The recent banking industry report of Mirae Asset Securities Company said that the outstanding balance of restructuring loans has reached its peak. The newly formed bad debt may not increase much, but the bad debt on the books may increase due to the bad debt recognition from the restructuring loan when Circular 14 expires.
Banks with a low NPL coverage ratio may have to increase their provision in the near future, while quality banks with a high NPL coverage ratio will not face provision pressure.
Compiled by VietnamCredit