January 16, 2007
 

Vietnam's Agribank assets rise 22.7 pct in 2006

State-run Vietnam Bank for Agriculture and Rural Development (Agribank), the country's largest lender, said its assets rose 22.7 percent in 2006 from the previous year to 233.9 trillion dong ($14.5 billion).

Loans by the unlisted Hanoi-based bank were 15.7 percent higher at the end of 2006 at 186.33 trillion dong (US$11.5 billion), according to a report published on its website www.vbard.com.vn on Tuesday.

The report also stated that while lending has achieved a high and continuous growth, the bad debt based on new standards in line with the international accounting practice only accounted for 1.9 percent of the total loans.

Agribank, ordered by the government to go public in 2008 following similar moves by state-run Vietcombank and Mekong Delta Housing Bank this year, had aimed to keep the bad debt ratio at 5 percent in 2006.

Deposits expanded 24.3 percent last year to 225.5 trillion dong ($13.9 billion), the bank said. Agribank said it raised more of the funds from the public partly through several bond issues and had reduced reliance on central bank loans.

Agribank is the largest of Vietnam's more than 40 commercial banks, of which only Sacombank and Asia Commercial Bank have listed. ($1=16,136 dong)