The rise of private banking

The total charter capital of 28 domestic commercial banks (including Agribank and 27 joint stock commercial banks) as of December 31, 2024 is VND 823,522 billion (equivalent to about USD 33 billion), an increase of 15.23% compared to the end of 2023. Of which, there are 16 banks with a charter capital scale of over USD 1 billion (in 2023 there will be 12 banks).

Up to 20 out of 28 commercial banks will increase their charter capital in 2024. Of which, NCB and Techcombank recorded the strongest growth in charter capital compared to 2023, at 110% and 100%, respectively.

Specifically, NCB's charter capital increased from VND5,600 billion to VND11,780 billion, while Techcombank's increased sharply from VND35,225 billion to VND70,658 billion.

Thereby, NCB has improved its position, from 23rd in 2023 to Top 20 banks with the largest charter capital in 2024. Techcombank has also taken a big step forward, from 11th to Top 2 banks with the largest charter capital in the system.

Although VPBank did not increase its charter capital last year, it still maintained its position as the Top 1 with a charter capital of VND79,339 billion. Of which, 13 individual shareholders and 4 institutional shareholders hold 1% of the bank's charter capital.

In addition to VPBank and Techcombank, the Top 10 commercial banks with the largest charter capital currently include BIDV with VND 68,975 billion (up 21%); Vietcombank with VND 55,891 billion (unchanged); VietinBank with VND 53,670 billion (unchanged); MB with VND 53,063 billion (up 1.77%); Agribank with VND 51,616 billion (up 25%); ACB with VND 44,666 billion (up 15%); SHB with VND 38,073 billion (up 1.16%) and HDBank with VND 35,101 billion (up 20.72%).

The remaining banks all have charter capital of less than 30,000 billion VND.

Of which, 7 banks have charter capital under 10,000 billion VND. In order of the banks with the smallest charter capital, they are: Saigonbank 3,388 billion VND (up 10%); KienlongBank 3,653 billion VND (unchanged); PGBank 4,200 billion VND (up 40%); Viet A Bank 5,400 billion VND (unchanged); BVBank 5,518 billion VND (up 10%); VietBank 7,139 billion VND (up 49.46%) and Bac A Bank 8,959 billion VND (up 7.5%).

Notably, the Top 10 largest banks in 2024 have the addition of two names: Techcombank and Agribank.

LPBank did not increase its charter capital last year, so it lost its position in the Top 10 and fell to 15th place in the ranking of banks with the largest capital scale.

The group of banks with the highest growth rate, in addition to NCB and Techcombank, also includes: VietBank (up 49.46%); PGBank (up 40%); MSB (up 30%) and Nam A Bank (up 29.73%).

Notably, PGBank has had a strong breakthrough in charter capital after the participation of a new group of shareholders.

In the list of shareholders owning 1% of PGBank's charter capital, there are 16 shareholders, including organizations and individuals. Of which, the 3 largest legal shareholders are: Cuong Phat International Joint Stock Company 13.541%; Vu Anh Duc Trading Joint Stock Company 13.36%; Gia Linh Import-Export and Trade Development Company Limited, owning 13.099%.

Techcombank (21).jpg
Techcombank recorded strong growth in charter capital. Photo: Nam Khanh

State-owned banks are about to have a breakthrough

There are 8 banks that did not change their charter capital, including two state-owned banks, VietinBank and Vietcombank. The remaining 6 banks include: LPBank, VPBank, Sacombank, ABBank, Viet A Bank and KienlongBank.

However, the position of the top banks will change significantly when Vietcombank recently announced its plan to issue nearly 2.77 billion shares, with an issuance rate of 49.5% for shareholders on the list at the time of closing rights. The total expected issuance value is 27,666 billion VND.

Capital source is from remaining profit after tax, after setting aside accumulated funds up to the end of 2018 and remaining profit in 2021 (VND 27,702 billion, equivalent to 49.564% of charter capital).

After the successful issuance, Vietcombank's charter capital is expected to increase by a maximum of VND27,666 billion, from VND55,891 billion to about VND83,557 billion.

In addition, Vietcombank also plans to issue 6.5% of its capital privately to institutional investors (equivalent to 1.3 billion USD), expected to be completed in the first half of 2025 if market conditions are favorable.

According to the current shareholder structure, state shareholders hold 74.80% of Vietcombank's charter capital. Foreign shareholder Mizuho Bank, Ltd holds 15%, other shareholders hold 10.20%.

At BIDV, the current charter capital is 68,975 billion VND, of which state capital accounts for 80.99% of charter capital, the capital of strategic shareholder KEB Hana accounts for 15%, and the capital of external investors through stock issuance accounts for 4.01%.

VietinBank's charter capital is VND53,670 billion, of which state shareholders hold 64.46%, foreign partner MUFG holds 19.73%, and other shareholders hold 15.81%.

In 2024, Agribank was granted an additional VND 17,100 billion in charter capital from the state budget as planned, raising the total charter capital to VND 51,600 billion.

With a credit growth target of about 16% in 2025, the State Bank has assigned Agribank a credit growth target of nearly 13%, equivalent to an increase of over VND 200,000 billion.

According to Agribank leaders, if annual outstanding debt increases by VND200,000 billion, Agribank needs to add VND15,000-17,000 billion in equity capital.

RANKING OF CHARTER CAPITAL OF BANKS (UNIT: MILLION VND)
STT BANK 2024 2023 CHANGE % CHANGE
1 VPBANK 79,339,236 79,339,236 0 0
2 TECHCOMBANK 70,648,517 35,225,108 35,423,409 100.56
3 BIDV 68,975,153 57,004,359 11,970,794 21.00
4 VIETCOMBANK 55,890,913 55,890,913 0 0
5 VIETINBANK 53,699,917 53,699,917 0 0
6 MB 53,063,241 52,140,841 922,400 1.77
7 AGRIBANK 51,615,833 41,268,833 10,347,000 25.07
8 ACB 44,666,579 38,840,540 5,826,039 15.00
9 SHB 38,073,428 37,638,324 435.104 1.16
10 HDBANK 35,101,423 29,076,321 6,025,102 20.72
11 VIB 29,791,278 25,368,075 4,423,203 17.44
12 SEABANK 28,350,000 24,957,000 3,393,000 13.60
13 TPBANK 26,419,562 22,016,350 4,403,212 20.00
14 MSB 26,000,000 20,000,000 6,000,000 30.00
15 LPBANK 25,576,164 25,576,164 0 0
16 OCB 24,657,891 20,548,242 4,109,649 20.00
17 SACOMBANK 18,852,157 18,852,157 0 0
18 EXIMBANK 18,688,106 17,469,561 1,218,545 6.98
19 NAM A BANK 13,725,506 10,580,416 3,145,090 29.73
20 NCB 11,779,848 5,601,555 6,178,293 110.30
21 ABBANK 10,350,368 10,350,368 0 0
22 BAC A BANK 8,959,336 8,334,266 625,070 7.50
23 VIETBANK 7,139,413 4,776,827 2,362,586 49.46
24 BVBANK 5,518,462 5,016,800 501,662 10.00
25 VIET A BANK 5,399,600 5,399,600 0 0
26 PGBANK 4,200,000 3,000,000 1,200,000 40.00
27 KIENLONGBANK 3,652,819 3,652,819 0 0
28 SAIGONBANK 3,387,991 3,080,000 307,991 10.00
TOTAL 823,522,741 714,704,592 108,818,149 15.23