In the first six months of 2021, Vietcombank's credit growth reached nearly 9% (nearly double the industry average). Vietcombank is one of the largest and most effective banks, with a credit target assigned by the State Bank at a higher level than the industry average and higher than other state-owned commercial banks. In 2020, this bank's credit growth was at 14% and became the bank with the highest credit growth scale.
Techcombank announced stable profit growth in the second quarter of 2021 with 5,671 billion VND of pre-tax profit, up 2.8% compared to the first quarter of 2021, and up 56.8% over the same period in 2020. In the first six months of 2021, Techcombank's profit is expected to reach more than 11,000 billion VND. Techcombank's profit for 2021 is forecasted to grow from an 18% increase to a 29% increase compared to 2020, while the compounded growth in provisioning profit for the period 2022-2025 is almost unchanged. Pre-tax profit in 2021 is expected to reach VND 20,437 billion, an increase of 9% compared to the previous forecast.
From January 23, 2020, to the end of June 2021, VietinBank has lent 583 trillion VND to 7,200 customers facing difficulties due to the impact of the COVID-19 pandemic. The bank supported reducing interest rates, exempted or reduced lending fees for businesses and people affected by the pandemic with an interest rate reduction of 2-2.5% a year for 7,500 customers with exempted outstanding loans. By the end of June 2021, VietinBank has 950 customers whose repayment term has been restructured with a structured loan balance of nearly 5,700 billion VND.
Credit balance of Vietinbank by the end of the second quarter of 2021 reached 1.06 million billion VND, the growth rate has improved compared to the same period in 2020. Total individual bank assets of Vietinbank at the end of the second quarter of 2021 reached 1.4 million billion VND. Regarding capital mobilization, by the end of June 2021, it reached VND 1.2 million billion, up 3.4%. The proportion of non-cash deposits (CASA) improved.
The bad debt ratio at the end of the second quarter of 2021 of VietinBank was at 1.38%, quite low compared to the industry average. The non-performing loan (NPL) ratio increased compared to the end of the first quarter this year (about 0.94%) due to many debts that had to be restructured in the second quarter. NPL coverage ratio reached 110%. It is expected that by the end of the fourth quarter of 2021, the maximum bad debt ratio will be only 1-1.2%. The target bad debt coverage ratio is 180%.
Vietinbank’s profit in the second quarter of 2021 reached about 5,000 billion VND, up 10% over the same period in 2020. Banking business results changed positively with good cost control, credit quality, etc., in the context of continuing to support fee and interest exemption and reduction for customers facing difficulties due to COVID-19. The estimated profit in the first months of 2021 is 13,000 billion VND.
With the share dividend at the rate of 35%, the Military Commercial Joint Stock Bank (MB) will surpass Vietcombank, Agribank, Techcombank in terms of charter capital shortly. It is expected that MB has a plan to increase 10,000 billion VND from the residual profit of 2019 to pay a dividend of 8%, bringing the total charter capital to more than 47,325 billion VND. After that, Vietcombank will issue a private placement of 6.5% of charter capital to increase capital to more than 50,400 billion VND.