Vietnam has set a target for banks of less than 2 percent of interal NPL on their books in 2019. Photo by Shutterstock/thi
The banking sector managed to keep its internal bad debts ratio below 3 percent at the end of Q1, according to the central bank.
According to a report of the State Bank of Vietnam (SBV), results from this year’s annual general meeting season showed strong bad-debts control by the 17 listed banks.
While the majority reported internal non-performing loans (NPL) of 1-2 percent, some have even managed to keep it below 1 percent.
ACB reported the lowest NPL of 0.73 percent, followed by Vietcombank with 0.97 percent, MBBank with 1.33 percent, HDBank with 1.45 percent, and TPBank with 1.89 percent.
Series 1: 0.73
According to the report, since 2012, banks have recovered a total of VND907.3 trillion ($38.96 billion) worth of bad debts.
Last year alone they recovered VND163.14 trillion ($7 billion), bringing NPL still on their books down to 2.02 percent.
It has set a target for banks of less than 2 percent of interal NPL on their books in 2019.
