Bad debt exceeds $11 billion, a mixed picture across lenders

Bad debt exceeds $11 billion, a mixed picture across lenders

The rise of non-performing loans forced banks to increase total credit risk provisions by 10 per cent to stand at VNĐ86 trillion (US$3.3 billion).

Customers completing a transaction at Vietcombank's branch. Vietcombank is among 12 banks that have reported bad debt ratios below 2 per cent. — VNA/VNS Photo

Bad debt at 29 commercial banks stood at VNĐ294.4 trillion (US$11.3 billion) as of the end of June, representing an increase of more than 13 per cent over the end of 2024, their financial reports show.

Outstanding loans totalled nearly VNĐ14.8 quadrillion as of June 30.

The rise of non-performing loans forced banks to increase total credit risk provisions by 10 per cent to stand at VNĐ86 trillion.

Among 29 commercial banks, 11 reported a decline in bad debt ratios in the second quarter, including National Citizen Commercial Joint Stock Bank (NBC) from 19.54 per cent to 11.35 per cent and Agribank from 1.68 per cent to 1.43 per cent. Other banks included An Binh Bank (ABBank), Viet A Bank, Saigon-Hanoi Bank (SHB) and TPBank.

Lenders with increases in bad debt ratios in the second quarter included PGBank, Viet Capital Joint Stock Commercial Bank (BVBank), BIDV, HDBank, Saigonbank and Nam A Bank.

NCB continued to have the highest bad debt ratio in the banking system, but the ratio decreased significantly in the second quarter, highlighting the bank’s efforts to restructure its debts.

As of the end of June, 21 out of 29 banks reported bad debt ratios under 3 per cent – the threshold deemed safe.

Of these, 12 banks reported ratios below 2 per cent, including as Vietcombank (1 per cent), Viet A Bank (1.11 per cent), Bac A Bank (1.25 per cent), Asial Commercial Joint Stock Bank (ACB) (1.28 per cent), VietinBank (1.31 per cent) and Techcombank (1.32 per cent). 

Bizhub