Despite difficulties of the market, many domestic commercial banks increased capital in 2024, bringing the total charter capital of 28 banks as of December 31, 2024 to VNĐ823.52 trillion (US$33 billion), an increase of 15.23 per cent compared to the end of 2023.

 

Of 28 banks, 16 banks had a charter capital of more than $1 billion, one more than in 2023, according to the banks' financial reports.

 

Up to 20 out of 28 commercial banks increased their charter capital in 2024. Of which, two banks, including NCB and Techcombank, recorded the strongest growth in charter capital compared to 2023, at 110 per cent and 100 per cent, respectively.

 

Specifically, NCB's charter capital surged from VNĐ5.6 trillion to VNĐ11.78 trillion, while Techcombank's charter capital increased sharply from more than VNĐ35.2 trillion to nearly VNĐ70.66 trillion. The rise helped NCB improve its position from the 23rd in 2023 to within the top 20 banks with the largest charter capital in 2024.

 

Techcombank also took a big step forward, from 11th to second place among the banks with the largest charter capital in the country’s banking system.

 

In addition to NCB and Techcombank, other banks with the highest growth rate in terms of charter capital includes VietBank (up 49.46 per cent), PGBank (up 40 per cent), MSB (up 30 per cent) and Nam A Bank (up 29.73 per cent).

 

Although VPBank did not increase its charter capital last year, it still maintained its position as the number one bank with a charter capital of nearly VNĐ79.34 trillion. Of which, 13 individual shareholders and 4 institutional shareholders hold one per cent or more of VPBank's charter capital.

 

The top ten commercial banks with the largest charter capital currently include VPBank, Techcombank, BIDV with nearly VNĐ68.98 trillion (up 21 per cent), Vietcombank with VNĐ55.89 trillion (unchanged), VietinBank with VNĐ53.67 trillion (unchanged), MB with VNĐ53.06 trillion (up 1.77 per cent), Agribank with VNĐ51.62 trillion (up 25 per cent), ACB with nearly VNĐ44.67 trillion (up 15 per cent), SHB with VNĐ38.07 trillion (up 1.16 per cent) and HDBank with more than VNĐ35.1 trillion (up 20.72 per cent).

 

According to experts, the need to raise charter capital stems from requirements of improving the capital adequacy ratio (CAR), increasing the risk provision ratio, rising medium and long-term capital sources and promoting investment in technology.

 

Banking analyst Nguyễn Trí Hiếu said though the CAR of Vietnamese banks has improved, it still hasn't reached international standards and the average level comparative with the banking industry in the region, with the CAR of Vietnamese banks still below that of other banks in the region.

 

Hiếu said, many banks in Việt Nam have not fully implemented the pillars of international banking standard Basel II, while some countries in the region have applied Basel III or part of it, so increasing charter capital is considered necessary to improve financial capacity and ensure the stability of the Vietnamese banking system. — VNS

 

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