The Government has just sent a report to the National Assembly on investment, management and use of state capital in enterprises nationwide in 2023. It includes an assessment of the financial situation and operations of the state-owned commercial banking sector.

Based on the audited consolidated financial statements of the State-owned commercial banks, including Vietcombank, Agribank, VietinBank and BIDV and reports sent to the State Bank as of December 31, 2023, it shows that the business performance of the Big4 banks achieved positive growth; capital safety indicators are still guaranteed, capital mobilization increased rapidly.

Specifically, by the end of 2023, the total liabilities and equity (total capital) of the State-owned commercial banking sector will reach VND 8,218,023 billion, an increase of 7.9% compared to the end of 2022.

Regarding capital use, deposits at the State Bank reached VND 173,201 billion, down 28.3% compared to the end of 2022.

Deposits and loans to other credit institutions reached VND 1,111,458 billion, up 14.5% compared to the end of 2022.

Customer loans of 4 state-owned commercial banks by the end of 2023 reached VND 5,938,588 billion, an increase of 12.9% compared to the end of 2022.

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Bad debt in 2023 of the big4 banking group increased by 10.5% compared to the end of 2022. Photo: Hoang Ha.

According to the report, credit quality is guaranteed, bad debt compared to total outstanding debt in 2023 is 86,000 billion VND, an increase of 10.5% compared to the end of 2022; the bad debt ratio in 2023 is 1.29% (in 2022 it is 1.32%).

The total bad debt of State-owned commercial banks handled in 2023 through the following forms: Customers repaying debts, selling assets, setting aside provisions... is VND 174,338 billion, an increase of 45.8% compared to the end of 2022; of which, the use of risk provisions is VND 50,641 billion, a decrease of 19.1% compared to the end of 2022.

In terms of business results, the total revenue of the big4 group in 2023 reached VND 662,987 billion, an increase of 19.3% compared to 2022. Pre-tax profit reached VND 119,682 billion, an increase of 15.1% compared to 2022.

Regarding investment activities, by the end of 2023, the total balance of investment securities of the State-owned commercial banking sector was VND 735,673 billion, down 11.4% compared to the end of 2022.

The return on equity (ROE) at the end of 2023 (according to the consolidated report) reached 18.62%. The return on assets (ROA) at the end of 2023 (according to the consolidated report) reached 1.17%.

According to the Government's report, by the end of 2023, state-owned commercial banks had paid VND 37,238 billion to the state budget, of which Agribank was VND 12,282 billion; BIDV VND 6,448 billion; Vietcombank VND 11,648 billion and Vietinbank VND 6,860 billion.