|A clerk processes a transaction at a branch of the Bank for Development and Investment of Viet Nam in central Quang Nam Province. Total assets at State-owned commercial banks, joint venture banks and foreign banks increased by 0.83 per cent and 4.45 per cent in the first quarter. — VNA/VNS Photo Hong Ky
HA NOI (VNS) — The health of credit institutions improved significantly in March, with the value of their assets registering a sharp increase over February to more than VND123.4 trillion (US$5.8 billion).
The 2.17 per cent increase is a marked improvement after a negative growth in February, according to the latest report from the State Bank of Viet Nam.
The report says that total assets of State-owned commercial banks surged to over VND70 trillion ($3.18 billion), and those of joint stock commercial banks rose to VND55.8 trillion ($2.536 billion).
The March figures have pushed up the total asset value of the entire banking system in the first quarter by 0.91 per cent over December last year to more than VND5,800 trillion ($263.636 billion), the central bank's data shows.
The total assets of State-owned commercial banks, joint venture banks and foreign banks increased by 0.83 per cent and 4.45 per cent, to more than VND2,520 trillion ($114.545 billion) and VND736.29 trillion ($33.467 billion), respectively, while those of joint stock commercial banks were more than VND2,460 trillion ($111.818 billion), down 0.06 per cent, the report added.
Total assets of finance companies and financial leasing companies, and the nation's sole co-operative bank in Q1 also reached VND66 trillion ($3 billion) and VND18.43 trillion ($837.72 million), up 1.13 per cent and 7.26 per cent. By the end of the first quarter, the equity capital of the banking system was nearly VND470 trillion ($21.363 billion), up 0.64 per cent against December last year.
However, the equity capital of State-owned commercial banks and joint stock commercial banks declined.
The central bank also reported that the returns on assets (ROA) ratio of the system last year was 0.5 per cent, while returns on equity (ROE) was 5.56 per cent, much lower than 0.79 per cent and 10.34 per cent in 2012 respectively.
The State-owned commercial banks, joint stock commercial banks and the cooperative bank led the system in terms of ROA ranging between 0.65 per cent and 0.71 per cent while the State-owned commercial banks topped the ROE ranking with 8.1 per cent. — VNS