Real Estate Loans at the Top 10 Largest Banks
Real Estate Loans at the Top 10 Largest Banks
VIB has the lowest real estate (RE) loan balance among the top 10 listed banks with the largest charter capital. Conversely, Techcombank is the bank with the highest concentration on real estate lending.
The top 10 largest listed banks by charter capital include: BIDV, VietinBank, Vietcombank, VPBank, MB, Techcombank, ACB, SHB, VIB, and HDBank.
According to VietNamNet statistics, Techcombank is currently the leader in real estate lending within the banking system. In 2022, the bank allocated a substantial amount of 300 trillion VND (out of a total outstanding balance of over 411 trillion VND) for the real estate sector, including loans to both businesses and individuals. The largest real estate business clients include Vingroup, Sun Group, and Masterise.
Regarding personal loans, in 2022, Techcombank served 46 thousand individual customers for home purchases with a total outstanding balance of 190 trillion VND. The average outstanding balance per customer was over 4 billion VND.
Vietnam Investment and Development Bank (BIDV) ranks second with a real estate loan balance of up to 275,000 billion VND, accounting for 18.4% of the total customer loans for the entire year 2022. This percentage places BIDV at the top in terms of real estate lending ratio. In 2022 alone, the real estate loan balance at BIDV increased by 46 trillion VND, a 20% growth compared to the previous year.
Acknowledging the relatively high growth rate compared to the average, Mr. Le Ngoc Lam, CEO of BIDV, stated that the bank primarily focuses on the individual customer segment. As of December 31, 2022, the outstanding balance for individual customers purchasing homes was 217,000 billion VND, representing 79% of BIDV's real estate loan portfolio.
Vietnam Bank for Industry and Trade (VietinBank) ranks third in absolute figures, with 265.477 trillion VND. Mr. Nguyen Hoang Dung, Deputy CEO in charge of VietinBank's Executive Committee, revealed that the real estate credit balance at VietinBank accounted for 21% of the total credit balance in 2022.
Meanwhile, the State Bank of Vietnam (SBV) reported that the real estate credit balance for the entire banking system reached about 2.58 million trillion VND by the end of 2022, increasing by approximately 24.27% compared to the end of 2021. Real estate lending has been one of the highest growth sectors, accounting for a significant 21.2% share of the total credit balance, making it one of the most prominent sectors for the economy in the past five years.
Among the current commercial banks, some smaller-sized banks still maintain strong ties with real estate businesses. Examples include: Sacombank - Him Lam, KienLongBank - Sunshine Group, SeABank - BRG, ABBank - Geleximco, NCB - Sun Group.
However, the financial reports of these banks obscure information about real estate lending, with only one bank disclosing the value of real estate assets currently mortgaged at the bank, totaling 59.353 trillion VND.
