At the end of the second quarter of 2023, most of the joint stock commercial banks (commercial joint stock banks) recorded a sharp increase in the bad debt ratio compared to the beginning of 2022. The National People’s Commercial Joint Stock Bank ranked first in the system in terms of bad debt ratio. followed by VPBank, ABBank, VietBank…

The fact that the bad debt ratio of banks tends to increase has been predicted by many experts in advance. The reason is that production and business activities of enterprises continue to face many difficulties in the face of negative external impacts, especially due to the effects of difficulties in real estate and consumer finance.


Collected from the financial statements of 27 commercial banks, National Commercial Joint Stock Bank (NCB – code: NVB) has the highest ratio of bad debt to total outstanding loans in the system. Behind NCB is An Binh Commercial Joint Stock Bank (ABBank – stock code ABB) with a bad debt ratio accounting for 4.55% of the bank’s total outstanding loans to customers. At ABBank, bad debt increased sharply in group 3 (substandard debt) and group 4 (doubtful debt), with an increase of 156% and 211% respectively.

Third place is Vietnam Prosperity Commercial Joint Stock Bank (VPBank – stock code: VPB). According to the bank’s separate financial report for the second quarter of 2023, VPB’s bad debt as of June 30, 2023 was VND 16,195 billion, accounting for 3.88%.

Following VPBank closely is Vietnam Thuong Tin Commercial Joint Stock Bank (Vietbank – stock code: VBB) with a ratio of bad debt to total outstanding loans of 3.86%, almost flat compared to the same period in 2022.

Next is Orient Commercial Joint Stock Bank (OCB); Viet Capital Commercial Joint Stock Bank (VBB); Petrolimex Petroleum Commercial Joint Stock Bank (PGB); Import-Export Vietnam (Eximbank – stock code: EIB); Nam A Commercial Joint Stock Bank (NamAbank – NAB); Saigon – Hanoi Commercial Joint Stock Bank (SHB)…

In general, only 2/27 banks that recorded a decrease in bad debt ratio compared to the beginning of 2023 were Kienlongbank and SHB. Specifically, Kienlongbank reduced the bad debt ratio from 1.92% to 1.65%. SHB also reduced its bad debt ratio from 2.81% to 2.58% in the first half of 2023.

According to data from the Vietnam Banks Association (VNBA), by the end of the second quarter of 2023, the bad debt of credit institutions increased sharply compared to before, the potential bad debt is 5.34% so far, many banks have a high interest rate. bad debt ratio increased over 3%, some banks and financial companies with bad debt suddenly increased over 5%.

The higher the bad debt ratio, the greater the risk of affecting the capital flow of commercial banks. This is the main cause of restraining the circulation of credit in the economy.

Many analysts believe that bank bad debts will continue to be under increasing pressure in 2023 in the context of a slow economic recovery, businesses facing many difficulties, the real estate market and corporate bonds nearing the end of the year. like freezing.

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