Banks charter capital surges by 15.23% to USD 33 billion

Banks' charter capital surges by 15.23% to USD 33 billion

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 VND 823.52 trillion (USD 33 billion), an increase of 15.23% compared to the end of 2023.

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Of 28 banks, 16 banks had a charter capital of more than USD 1 billion, 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.

Customers make transactions at a Techcombank’s office in Hanoi. Charter capital at the bank surged from more than VND 35.2 trillion to nearly VND 70.66 trillion

Specifically, NCB's charter capital surged from VND 5.6 trillion to VND 11.78 trillion, while Techcombank's charter capital increased sharply from more than VND 35.2 trillion to nearly VND 70.66 trillion. 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 VND 68.98 trillion (up 21%), Vietcombank with VND 55.89 trillion (unchanged), VietinBank with VND 53.67 trillion (unchanged), MB with VND 53.06 trillion (up 1.77%), Agribank with VND 51.62 trillion (up 25%), ACB with nearly VND 44.67 trillion (up 15%), SHB with VND 38.07 trillion (up 1.16%) and HDBank with more than VND 35.1 trillion (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.

Source: VNA