Outstanding debt equal to 10 other banks combined

Only 12/27 listed banks published detailed analysis of outstanding loans by business sector in their third quarter financial reports.

According to the individual financial reports of the third quarter of 2023 of the banks, the total outstanding real estate loans of the group of 12 banks as of September 30 was nearly VND 430,000 billion, an increase of VND 144,000 billion compared to the end of 2022.

In order, the banks lending the most real estate as of September 30 are: Techcombank 160,000 billion VND; VPBank 79,500 billion VND; SHB 66,500 billion VND; HDBank 35,600 billion VND; MB 34,500 billion VND; TPBank 13,600 billion VND; VietBank 13,200 billion VND; MSB 12,500 billion VND; VietCapital Bank (BVBank) 7,000 billion VND; KienLongBank 3,000 billion VND; PG Bank 2,000 billion VND; and VIB 1,700 billion VND.

Of which, three banks reduced outstanding real estate loans compared to the end of last year, including: VietCapital Bank (down 381 billion VND), PG Bank (down 220 billion VND) and VIB (down 300 billion VND).

The total outstanding real estate loans of 9 banks including HDBank, MB, TPBank, VietBank, MSB 12,500, VietCapital Bank (BVBank), KienLongBank, PG Bank and VIB reached about 120,000 billion, which is 40,000 billion lower than Techcombank's real estate loans.

As the bank with the largest real estate loan disbursement, Techcombank also leads in the proportion of real estate loans to total outstanding loans.

With more than VND 160,000 billion in loans to corporate customers in the real estate sector, this figure accounts for 34.63% of Techcombank's total outstanding loans as of September 30. Meanwhile, as of December 31, 2022, Techcombank's outstanding real estate loans are VND 109,000 billion, equivalent to 26.44% of total outstanding loans.

However, the real estate lending figures at Techcombank only reflect lending to businesses. Meanwhile, up to 42.6% of the bank's credit is for individual customers (nearly 200,000 billion VND). Therefore, it is possible that many of these people also borrow capital to invest in real estate.

The real estate lending ratio at VPBank also increased compared to the end of last year. Real estate lending turnover for corporate customers reached VND79,500 billion, accounting for 17.71% of total outstanding loans in the first 9 months of the year. This figure has increased compared to the end of last year, from VND52,000 billion, equivalent to 14.39% of total outstanding loans at that time.

However, unlike other banks that “hide” real estate loan information from individual customers, VPBank publicly disclosed an outstanding loan balance of nearly VND 88,500 billion “for personal loans to buy houses, receive land use rights to build houses”. This outstanding loan balance accounts for 19.48% of total outstanding loans (a slight decrease compared to the end of last year, which was 22.93%).

At SHB, outstanding real estate loans at the end of September were VND 66,580 billion, accounting for 16.38% of total outstanding loans. As of December 31, 2022, this figure was only VND 30,419 billion, accounting for 8.33%.

At MB, outstanding real estate loans as of September 30 were VND 34,500 billion, accounting for 6.81% of total outstanding customer loans (as of December 31, 2022, it was VND 21,357 billion, accounting for 4.91%).

At TPBank, loans for real estate business activities reached more than VND 13,600 billion, accounting for 7.58% of total outstanding loans. This figure has increased compared to the end of 2022 when real estate loan turnover was VND 10,165 billion, equivalent to 6.31%.

For MSB, the bank allocated VND12,450 billion (8.87% of total outstanding loans) for real estate loans as of September 30. Meanwhile, as of December 31 last year, outstanding real estate loans were VND10,386 billion (8.75% of total outstanding loans).

Among the banks that announced details of loan balance analysis by business sector, VIB is the bank with the lowest real estate lending, with only VND1,697 billion, equivalent to 0.69% of total outstanding loans, reserved for lending in this sector.

Even the real estate lending ratio at VIB has decreased slightly compared to the end of last year when the real estate lending ratio/total outstanding debt at the end of last year was 0.86%.

It is worth noting that although only VND 1,697 billion was allocated for real estate loans, the value of collateral for real estate-related loans as of September 30 was up to VND 353,000 billion, including assets, valuable papers, mortgages, and discounts and rediscounts.

VIB is a bank that focuses on lending to the field of hiring jobs for households, producing material products and services for household consumption. The credit ratio for this field at the end of September 2023 was up to 83.47%, while at the end of last year it was 87.63%.

Outstanding real estate loans at 12 banks as of September 30 (unit: billion VND)
STT	BANK	September 30, 2023	12/31/2022
1	TECHCOMBANK	160,000	109,000
2	VPBANK	79,500	52,000
3	SHB	66,500	30,400
4	HDBANK	35,600	21,000
5	MB	34,500	24,300
6	TPBANK	13,600	10,600
7	VIETBANK	13,200	13,100
8	MSB	12,500	10,400
9	VIETCAPITAL BANK	7,000	7,300
10	KIENLONGBANK	3,000	2,900
11	PGBANK	2,000	2,200
12	VIB	1,700	2,000

In the Prime Minister's telegram dated October 24 on continuing to resolutely implement solutions to develop a safe, healthy, and sustainable real estate market, contributing to promoting socio-economic development, Prime Minister Pham Minh Chinh requested the Governor of the State Bank of Vietnam (SBV) to direct commercial banks to continue promoting credit lending to the real estate sector, and have appropriate solutions to reduce costs to reduce interest rates.

The Prime Minister requested special credit promotion policies for feasible real estate projects with fast implementation progress, creating momentum for growth and promoting the real estate market.

In addition, preside over and closely coordinate with the Ministry of Construction to carefully review favorable and open lending procedures and conditions, control and speed up the implementation of the 120,000 billion VND credit package.

Source