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 VND8.828 trillion (US$392.3 million) to VND9.908 trillion.

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 VND18.1 trillion, VND15.7 trillion and VND11.2 trillion, respectively. 

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The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) plans to raise its charter capital to VND14 trillion 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% in October and is expected to reach 18% this year. 

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

Hieu commented that banks in general have fairly high capital than the past years.

VNA

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