Five banks, including VietinBank, ACB, VIB, Techcombank and MSB, have qualified for the credit room expansion in the last time of this year, Saigon Hanoi Securities Joint Stock Company (SHS) estimates.
The credit room increase will help the banks expand their business scale, when credit demand is often high at the end of the year.
With the increase, the credit growth rate of three banks ACB, VIB and Techcombank can surge to more than 20 per cent. Specifically, VIB has the largest credit room expansion of 3.2 per cent, bringing the bank’s whole year credit growth to 21.6 per cent. Meanwhile, the additional rate for ACB and Techcombank is 2.29 per cent and 1.5 per cent to 20.69 per cent and 20 per cent, respectively.
KB Securities Vietnam Joint Stock Company (KBSV) also predicted that ACB's newly granted credit room would be around 20 per cent.
ACB's credit growth in the first nine months of 2024 reached 13.8 per cent compared to the end of 2023, led by the corporate customer group while the individual customer segment also showed signs of recovery from the third quarter of this year.
With a strategy of prioritising credit quality, KBSV forecasts ACB's credit growth for the whole year of 2024 at 18.5 per cent, unchanged from the previous forecast. In the period of 2025-2027, the bank’s expected credit growth each year is about 15-17 per cent, higher than the growth rate of the whole banking industry.
At Techcombank, the bank's credit growth by the end of the third quarter of 2024 reached 17.4 per cent compared to the end of 2023, the highest in the banking industry. In the third quarter alone, credit increased by 4 per cent compared to the second quarter, of which customer loans increased by 20.8 per cent compared to the end of 2023.
Techcombank is forecast to have a growth rate of 21 per cent for 2024 and 16-18 per cent for the 2025-2027 period, KBSV said.
In this time of credit expansion, the State Bank of Vietnam (SBV) has changed its credit management policy. Specifically, the SBV has allowed commercial banks to be completely proactive in determining their credit growth according to the capital needs of the economy and their own capital capacity. Any bank that runs out of the credit growth cap assigned by the SBV at the beginning of the year can proactively increase the cap without having to wait for the SBV's approval, as was the case in previous years.
The SBV at the beginning of this year set a credit growth target of 15 per cent for 2024.
According to SBV’s deputy governor Đào Minh Tú, credit growth by December 7 this year increased by 12.5 per cent. The credit growth this year was higher than last, because the economy has many more advantages, and many achievements have been reached. Exports have gained higher growth, while enterprises in general have more effective production and business activities, and the overall investment environment has been more favourable.
With the current credit growth rate and the fact that the end of the year is always the time of high disbursement, the 15 per cent annual credit target can be achieved.
