According to Tecombank’s first quarter financial report, its loans to customers have reached VND163.8 trillion ($7.12 billion) at the end of March, an up of 2.4 per cent or nearly VND3.9 trillion ($169.4 million) year-to-date.
In its company research for Techcombank dated June 14, Bao Viet Securities (BVSC) noted that the lender’s loan growth in the first quarter has depended largely on lending to Vingroup, Vietnam’s largest private enterprise in terms of market capitalisation.
Of the loan growth of 2.4 per cent, Techcombank’s wholesale banking business dropped some 8 per cent or over VND4 trillion ($174 million) while personal financial services and business banking arms rose $261 million (8 per cent) and $87 million (8 per cent) year to date, respectively.
“The capability for Techcombank’s credit growth will continue relying principally on Vingroup’s projects and their sales progress,” wrote BVSC’s report.
The growth in the personal financial services, as the securities company pointed out, arrived chiefly from Techcombank's disbursement of the VND6.8 trillion ($296 million) home loans for Vingroup’s Vincity (now Vinhomes Sapphire) project in the first quarter.
Techcombank has set its credit growth at 13 per cent for this year and the State Bank of Vietnam has approved the application of Basel II for the lender starting July 1. Under Basel II, Techcombank could ask the State Bank to expand its credit growth quota.
BVSC nevertheless said that the possibility for Techcombank to increase its credit growth quota is minute as the slowdown in the real estate market could result in the slower borrowing demand.
In addition, there have been around 10 banks apply for Basel II in advance at this stage and should they be permitted, the chance that all will request a bigger credit growth quota would be likely. Room for additional credit growth for each bank would thus be small as the central bank ought to maintain its target credit growth for the year.