Wednesday, November 21, 2018 6:32:54 AM - Markets open
VN-INDEX 919.02 +2.96/+0.32%
HNX-INDEX 103.91 -0.04/-0.04%
UPCOM-INDEX 52.06 -0.34/-0.65%
Moody’s give positive ratings to three commercial banks
VietnamPlus - 4/10/2018 10:59:42 AM
 (0 ratings. You must sign in to rate.)
Moody’s Investors Service has upgraded the long-term local-currency bank deposits ratings and local- and foreign-currency issuer ratings of three banks of Vietnam from B2 to B1.
 
The banks include Asia Commercial Joint Stock Bank (ACB), Military Commercial Joint Stock Bank (MBBank) and Vietnam Technological and Commercial Joint Stock Bank (Techcombank).
 
Moody’s also raised the baseline credit assessment (BCA) for these three banks from b2 to b1.
 
“For ACB, the upgrade of its BCA reflects its improved asset quality, following the good progress in the resolution of its legacy problem assets, including the problem assets related to six companies tied to its former Vice Chairman Nguyen Duc Kien,” Moody’s said.
 
ACB's problem loans ratio, as adjusted by Moody's, declined to 0.95 percent at the end of 2017 from 2.99 percent at the end of 2016, driven largely by the full write-down of the 1.5 trillion VND (66 million USD) of bonds issued by the Vietnam Asset Management Company (VAMC), it added.
 
Similarly, MBBank’s problem loans ratio fell from 4.7 percent in 2016 to 2.9 percent in 2017 mainly due to the full write-off of VAMC bonds for 3.4 trillion VND (149.6 million USD).
 
Moody's expects ACB and MBBank's asset quality to remain stable over the next 12-18 months on the back of an improvement in the operating environment, which will in turn support the repayment capacity of the bank's borrowers.
 
As for Techcombank, its BCA upgrade is driven by improved solvency metrics, namely capital, asset quality and profitability.
 
Moody's estimates that the bank's tangible common equity to risk-weighted assets increased to 14.5 percent, from 9 percent in 2016, giving Techcombank the largest core capital buffer among the 16 Moody's-rated banks in Vietnam.
 
At the same time, Moody's has affirmed the long-term local- and foreign-currency deposit and issuer ratings of Vietnam Prosperity Joint Stock Commercial Bank (VPBank) at B2, and upgraded the bank's BCA to b2 from b3. 
 
The upgrade of VPBank's BCA takes into account the bank's high profitability, as well as its improved capital buffer. The BCA also considers VPBank's heightened credit risks from its consumer finance portfolio, and weak problem loan coverage compared to domestic and global peers.-VNA
 
Read original article here
Newer News
16/08 Moody’s upgrades ratings of 14 Vietnamese banks
15/08 Private banks raise interest rates to attract depositors
30/07 Bad debt ratio drops to 2.18% in five years
25/07 Total assets of credit institutions reaches nearly $448 billion
14/06 Interest rates kept stable in first half of 2018
13/06 Commercial banks to support WB projects
12/06 SBV to continue flexibly managing monetary, fiscal policies
08/06 Credit growth reaches 5.8%
16/04 Banks cut deposit rates thanks to good liquidity
Older News
08/02 Forex reserves soar to all time high of $57 billion
06/02 Moody’s optimistic about bad debt resolution in VN’s banks
17/01 OMO rates cut to support growth
13/01 BIDV to cut annual lending interest rate by 0.5 percent
12/01 Bad debt ratio at 2.3% by end 2017
12/01 Vietinbank lowers interest rates for loans to five priority fields
11/01 First bank reduces loan interest rates in 2018
26/12 Vietnam’s forex reserves soar to record-setting 48 billion USD
22/12 Maximum credit growth forecast at 18-19% in 2017
21/12 51% of Vietnamese adults have credit registry coverage
 
Newsletter Signup
Top Stories
VN Index to rise amid volatility, weak liquidity
VN stocks continue rallying
VN manufacturing PMI hits 22-month high in March
CPI goes up 4.96 percent year-on-year in first quarter
Slight rise in February CPI
Market Update
Last updated at 3:10:47 PM
VN-INDEX 919.02 +2.96/+0.32%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.