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Bank deposits of businesses at banks increased within 1 month

Friday 24, 07 2020
More than VND 166,000 billion of corporate deposits returned to the banking system in just one month, indicating a certain recovery of businesses after the Covid-19 pandemic was controlled in Vietnam since the end of April.
Bank deposits of businesses at banks increased within 1 month

The latest deposit data from the State Bank shows a noticeable reversal: for the first time this year, deposits of economic organizations grew positively compared to the beginning of the year.

Specifically, as of the end of May 2020, deposits of economic organizations increased by 0.26% over the beginning of the year, reaching over 3.97 million billion dongs. Previously, deposits of economic organizations decreased by 3.94% in the first 4 months of 2020.

In May alone, VND 166,675 billion of deposits from economic organizations returned to the banking system.

This signal is in line with the deposit cycle of economic organizations (in 2019, deposit growth of this group also reversed from negative to positive in May), and showed a certain recovery of businesses after the Covid-19 pandemic was under control in Vietnam from the end of April.

Table: Monthly bank deposit growth compared to the beginning of 2020
Table: Monthly bank deposit growth compared to the beginning of 2020

Meanwhile, people's deposits into the banking system recorded a third straight month of increase. Specifically, by the end of May 2020, people's deposit growth was at 4%, thereby officially surpassing the VND 5 million billion mark.

Previously, April and March recorded growth rates of 3.37% and 3.24%, respectively, compared to the beginning of the year.

Generally, total deposits in the market 1 (residents and economic organizations) reached nearly VND 9 million billion by the end of May 2020, an increase of 2.32% compared to the beginning of the year, equivalent to an increase of over VND 203,568 billion. In May alone, it increased by VND 197,282 billion.

Statistics of VietnamFinance from the consolidated financial statements of banks show that 4 state-owned commercial banks including Agribank, BIDV, Vietcombank, and VietinBank own nearly half of the total customer deposits in the system. Bank.

In which, Agribank ranked first, estimated at over 1.2 million billion dongs. BIDV also owns customer deposits surpassing the million VND billion, reaching VND 1.1 million billion in 2019. Next is Vietcombank with over 928,000 billion VND and VietinBank with over 892,000 billion VND.

Looking back, in 2013, VietinBank's customer deposits exceeded BIDV and Vietcombank. After that, BIDV surpassed the race, while VietinBank remained "on the basis" of Vietcombank until 2018.

However, in 2019, Vietcombank's customer deposit increased by 15.8%, while VietinBank's increase was only 8.1%, thereby surpassing. The reason is that VietinBank has a low credit growth limit (due to capital adequacy ratio), so the capital demand is also more limited.

Bank deposits of businesses at banks increased within 1 month

With private commercial banks, SCB is headed by customer deposits of over 438,000 billion dong. Ranked right after is Sacombank with over VND 400,000 billion. Next is ACB with over 308,000 billion dongs.

In 2016 and 2017, ACB was ranked above both SCB and Sacombank. However, despite SCB and Sacombank's difficulties because of the restructuring process, ACB still lagged behind in the "race" for customer deposits compared to these two banks. However, this helps ACB to optimize deposit costs and this is one of the reasons why ACB's profitability is superior to SCB and Sacombank.

Some other banks also own customer deposits of over VND 200,000 billion, including MB with over VND 272,000 billion, SHB with over VND 259,000 billion, Techcombank with over VND 231,000 billion and VPBank with over VND 213,000 billion.

Banks with customer deposits of over VND 100,000 billion include Eximbank, LienVietPostBank, HDBank, and VIB.

SeABank, TPBank, MSB, BacABank, NamABank ... are in the group of less than VND 100,000 billion. In which, the lowest among domestic private banks are Saigonbank with only VND 15,600 billion, although 9 years ago (in 2011), customer deposits of this bank were much larger than many other banks (such as TPBank), NamABank, OCB, Kienlongbank ...).

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Interest rates decreased but deposits in banks still increased sharply

Source: Vietnam Finance

Categories:
Banking & Finance

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