The picture of credit growth of banks shows many bright colors, focusing on the state-owned banking sector. For example, BIDV's financial report recorded credit growth by the end of the third quarter of 2024 at 9.8% compared to the beginning of the year.
VietinBank also had a credit balance growth of 9% by the end of the third quarter of 2024 compared to the beginning of the year. Meanwhile, by the end of the third quarter of 2024, Vietcombank's credit growth reached 10.2% compared to the beginning of the year, mainly driven by lending to corporate customers.
Meanwhile, in the joint stock commercial banking sector, there seems to be a clearer differentiation in the story of credit growth. Many joint stock commercial banks achieved quite high credit growth after 9 months such as Techcombank reaching 17.6%, VIB reaching 11.7%; TPBank reaching 13.5%...
According to data from the State Bank, as of October 31, 2024, system-wide credit increased by 10.08% compared to the end of 2023. Lending activities are still the main driver of profit growth for banks.
In the context of the banking industry's after-tax profit in the third quarter growing approximately 18% year-on-year, slower than the 22% growth in the second quarter, the focus of the banking industry will mainly revolve around the story of credit growth.
Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam (SBV) Ho Chi Minh City Branch, said that credit activities in the area continued to maintain growth in recent months.
In October 2024, credit growth rate reached 0.98% compared to the previous month; in September 2024, it increased by 1.1%; in August 2024, it increased by 0.75%; in July 2024, it decreased by 0.09% and in June 2024, it increased by 2.03%.
According to Mr. Lenh, credit in the remaining 2 months of the year often continues to perform well in supporting businesses and promoting economic growth. The capital mobilized by credit institutions in the area in the 10 months reached 3,855 trillion VND, up 8.9% compared to the end of the year (higher than the credit growth rate), creating favorable conditions to best meet the capital needs at the end of the year. At the same time, credit activities to stabilize the market, contributing to ensuring stable prices of goods, especially essential consumer goods at the end of the year, continue to be organized and implemented.
These figures show that credit is accelerating. Thus, compared to the growth target of 15%, banks still have a lot of room to provide capital in the last two months of the year. Currently, the lending interest rate level is maintained at a low level by banks, in order to stimulate credit demand at the end of the year, achieving the credit growth target of the banking industry.
Achieving the annual growth target of 15% set by the banking industry is not far-fetched. However, according to financial and economic experts, attention must be paid to credit quality, especially when bad debt tends to increase in the second half of this year.
