Top lender Vietcombank reports sharp increase in long overdue loans

Thanh Nien News

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An employee at a Vietcombank office in Hanoi arranges pack of dollar notes. Photo: Ngoc Thang An employee at a Vietcombank office in Hanoi arranges pack of dollar notes. Photo: Ngoc Thang

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Vietcombank, Vietnam’s biggest lender by market value, has reported a sharp increase in loans that are overdue for around a year or longer, even as total bad debt shrank in the first three quarters, according to local media. 
The bank released a statement on Friday saying that non-performing loans fell 4 percent to VND7.1 trillion ($320.5 million), equal to 2 percent of total loans in the first nine months.
But among them, credit in the extremely risky Category 5, which include loans that are overdue for more than 360 days, surged 38 percent to more than VND4.9 trillion ($223 million).
In Vietnam, non-performing loans are 90 days or more past due. 
Vietcombank posted a 10 percent credit growth in the first three quarters and a net profit of VND1,175 billion (US$53 million), up 13 percent year-on-year.
The bank entered the Forbes list of the world’s 2,000 largest companies for the first time this year. Its assets have increased to $27.8 billion by the end of September.

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