Bank savings of individual customers recover while institutional savings decline

Deposits of inpidual customers at banks have increased again since February this year, after declining in January, the latest statistics from the State Bank of Vietnam (SBV) showed.

Deposits by the end of February increased by 1.6% compared to the beginning of this year to reach nearly 6.64 quadrillion VND.

While savings of inpidual customers increased, savings of institutions and corporate customers at banks at the end of February this year decreased by 4.66%, compared to the beginning of the year, to 6.52 quadrillion VND.

Due to that decline, the total deposits of the entire banking system decreased slightly, from more than 13.17 quadrillion VND at the end of January to 13.16 quadrillion VND by the end of February 2024.

Previously, total deposits in the banking system at the end of January this year declined nearly 200 trillion VND, compared to the end of 2023 to more than 13.17 quadrillion VND.

Deposits of inpidual customers have returned to the banking system in spite of low interest rates, although banks have begun to adjust the rates up.

According to the SBV, as of March 31 this year, the average deposit interest rate was 3.02% per year, down 0.5% compared to the end of 2023.

Data from Q1 2024 financial statements of 27 commercial banks also showed total deposits of the entire banking industry only increased slightly by 0.7% compared to the end of 2023, in the context that deposit interest rates continuously decreased in the first months of the year.

The top three companies which attracted the highest deposits in Q1 2024 were still in the group of State-owned banks with a total savings of more than 4.51 quadrillion VND, an increase of 544.62 trillion VND compared to the end of 2023 and accounting for nearly 46% of the total deposits of the entire banking system.

BIDV continued to lead with total deposits of more than 1.7 quadrillion VND, an increase of 1.8% compared to the end of 2023. VietinBank followed with more than 1.4 quadrillion VND, up 1.2%. Vietcombank ranked third with total deposits of 1.3 quadrillion VND, down 3.4%.

In the group of private banks, Military Bank led with nearly 558.83 trillion VND in deposits in Q1 2024, down 1.5% and ranked fourth in the entire banking industry. Sacombank followed with a deposit of 533.36 trillion VND, an increase of 4.4%.

A number of private banks also recorded an increase in deposits in Q1 2024, such as ACB with total deposits increasing by 2.1% to 492.8 trillion VND; Techcombank with 458.04 trillion VND, up 0.8%; VPBank with 455.82 trillion VND, up 3%; and HDBank with 378.79 trillion VND, up 2.2%./.

VNA