Higher profits make it easier for banks to raise capital

The Housing Development Commercial Joint Stock Bank (HDBank) has been allowed to increase its chartered capital from more than 8.828 trillion VND (392.3 million USD) to 9.908 trillion VND.
It was the second time HDBank has revised up its chartered capital in a year.

Earlier, the Military Commercial Joint Stock Bank (MB), the Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and the Asia Commercial Bank (ACB) raised their chartered capital to over 18.1 trillion VND, 15.7 trillion VND and 11.2 trillion VND, respectively.

The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) plans to raise its charter capital to 14 trillion VND via selling shares to existing shareholders.

According to the National Financial Supervisory Committee (NFSC), buoyant securities market and growing profits make it easier for domestic banks to increase capital.

Financial-banking expert Nguyen Tri Hieu attributed big profits to credit growth, saying that credit grew by 15.9 percent in October and is expected to reach 18 percent this year.

Better risk management and lesser spending for risk provision fund led to higher profits, he said.

Mr. Hieu commented that banks in general have fairly high capital than the past years.
Source: VNA