At a transaction office of Sacombank in Hanoi. (Photo: VNA) In the report, VNDirect said the ratio of net interest income(NIM) of the banks in the second quarter of 2023 decreased by 0.32 percentagepoints year-on-year to 3.41%.
Nineteen out of 25 banks recorded a high decrease in NIM in thesecond quarter of 2023. In the group of medium and large banks, only Sacombank,VIB and VietinBank maintained a higher NIM compared to the same period lastyear. Specifically, VIB and VietinBank succeeded in taking advantage ofinterbank capital (with a sharp decrease in the second quarter of 2023) whenthe ratio of interbank capital to total capital of VIB and VietinBank increasedby 4% and 4.9%, respectively, over the same period last year.
According to VNDirect, Sacombank's NIM improves strongly in 2023when there is no longer pressure on accrued interest. Meanwhile, NIMs ofVPBank, Techcombank, LPBank and TPBank continue to decline the most as the corporatebond and real estate markets still faced difficulties in liquidity.
The current account savings account (CASA) ratio of the entirebanking industry showed an improvement from 17.6% at the end of the firstquarter of 2023 to 18.2% at the end of the second quarter of 2023 when thedeposit interest rate decreased continuously following the central bank’s fourpolicy interest rate cuts.
VnDirect expects the cost of capital to fall more sharply when thethird and fourth rate cut at the end of the second quarter of 2023 will takefull effect from the second half of 2023 onwards. However, VNDirect’s analystsdo not expect an immediate improvement in banks’ NIM as interest rate cutsremain the top priority to boost economic activity.
For the second half of this year, the analysts expect some bankssuch as MB and VIB, which have high personal loan ratios, low loan todeposit (LDRs) and low foreign currency capital to total capital, willhave more opportunities to improve NIM compared to the remaining banks.
Under the report, VnDirect said at the end of the second quarterof 2023, the credit of the whole banking system increased by 4.7% compared tothe beginning of this year. The rise was lower than the growth rate of 9.4% atthe end of the second quarter of 2022, but significantly increased from 3.17%at the end of May 2023.
In the second quarter of 2023, banks, which had a high lendingratio to the real estate industry, such as Techcombank and HDBank showed slowcredit growth when the real estate market was still in a difficult period.Meanwhile, banks, which had a high ratio of retail lending, achieved impressivecredit growth in the second quarter of 2023. It showed slight signs of recoveryfrom consumer demand.
In the second half of this year, VNDirect expects banks, whichhave a high ratio of retail lending, such as VIB and ACB will have manyopportunities to improve credit growth as Vietnam is gradually moving into theinitial recovery phase. In contrast, banks, which have a high ratio of realestate loans, may find it difficult to extend credit when Circular 06/2023(effective from September 2023) will limit the ability to access capital offirms./.
VNA
