Many banks focus consumer credit loans

In an environment of low interest rates personal credit loan channel is attractive to the urban commercial due to higher loan yields although the proportion of the new consumer loans accounted for 11 4 had total outstanding system wide credit bank nh but has contributed significantly to the efficiency of many urban commercial business a new angle with loans redirect credit net interest income of vietcombank in 2016 23 9 growth due to falling interest rates and improving student property the rate of marginal interest income nim from 2 54 to 2 76 the rate of marginal interest earnings improved thanks to a contribution of usd bonds have high yields have bought in the year 2015 along with accelerating lending operations on capital ldr which has high yield loan factors.

Many banks focus consumer credit loans
According to Vietcombank, leader in the year 2016, NH has proactively increase customer big GOV'T debt balance at low levels only 8.6% and boost credit growth SME block along with the client can multiply at a high level, which achieved increased levels in turn is 39% and 38.8%. The last time the URBAN COMMERCIAL has created the companies to consumer loans. Also located in the NH Group has a stake in the State-dominated, VietinBank reported total outstanding year 2016 reached 720,000 billion, up 18% compared to the year 2015. The main factors boosting credit growth also came from personal customers with loan growth of 35%, SME lending with growth of 29% and loans for foreign direct investment (FDI) 34% growth. In it, retail debt balance amounting to 27% of the total outstanding loans of NH.

Many other NHTMCP net interest income also with impressive growth thanks to promote personal loans. According to the report of the LienVietPostBank, net interest income for the year increased 53% from 2016 2,619 billion level last year 2015 to 4,023 billion last year 2016. This growth was analyzed as a retail structure thanks to increased 1.6 times compared to the end of the year 2015, the proportion of retail sales increased from 29% in the year 2015 to 35% in 2016. In the array of retail LienVietPostBank, the number of borrowers increased in the year 2016 reach 98,924 customers, with the number of customers of retail credit at all stages of 2008-2015. Information of the ACB to the end of the year 2016, credit growth reached 163,000 billion, up 21%, of which customer personal credit increase 30%, 53.81% contribution to total outstanding loans. This is one of the main factors helping to interest income net of the ACB in 2016 also grew to 17.1%.

Report the results of operations in 2016 of VPBank, credit growth of NH reached 17.5%, lower than the average growth of the industry. Song, the best pre-tax profit of 4,900 reaches NH billion and profit increased primarily due to net interest income reached 15,100 billion, an increase of 4,500 billion compared with the previous year. Credit growth is not too high but earnings from interest rising significantly was identified as due to NH focuses on the individual client segment, SMES benefit performance.

Recently, the segment of retail studies identification of SSI, the NH industries credit growth last year maintained at 2 numbers have an important contribution to the field of consumer loans. Traditional loans from investors turned to individuals due to circular 36/2014 and 06/2016 increases the risk factor of property credit. Consumer finance credit growth at the same time support the scaling factor marginal interest income in the year 2016 of the NH stable, reaching 2.8% compared with 2.7% in the year 2015 due to the increase in the proportion of high-yield lending and reduce the cost of capital in the context of low inflation and USD stabilization.

Support consumer credit?

According To TS. Nguyen Xuan Thanh (Fulbright economics teaching program), previously the driving force of economic growth but investment is due to the transformation of the economy, the last few years, the main growth impetus is the residential consumer. In 2015, improve economic growth thanks to increased consumption, the year 2016 growth slowed as well by the consumer. This structure also fits the current upheaval of Vietnam have become lower average economy. In the low average economy, consumers are the driving force of growth and consumer demand from the middle class and the average low and high average middle class.

Currently, consumers contribute 6.5% to GDP of Vietnam, this is high compared to other countries in the region and the potential growth of the consumer is still very large. According to him, if the processing industry, built to serve the rapidly growing exports present industry groups have high profit margins and attractive with investors on the stock market back is the processing industry and services geared to domestic consumption of consumer client team Labor, in the middle class. In that context, the NH loan restructuring, in credit growth, the strong increase of consumer credit is to meet demand from a very low point of departure but also fits in with the trend towards consumer economy.

That trend continues, this year, retail is still the target array to which the URBAN COMMERCIAL alignment. Mr. Yun Shan, General Manager of LienVietPostBank said, in the year 2016, NH continues to restructure credit portfolios, limiting lending credit risk and less effective to focus the retail development. Retail sales targets in 2017 will increase by about 60% compared with the previous year. In the materials of shareholders announced recently, ACB also offer orientation for the year 2017 focuses promoting personal credit, SMES according to the strategic objectives of the NH. Similarly, in the strategies of many other NH published recently also targeted growth in action block beside the individual clients group SME clients, ENTERPRISES, FDI reduce dependence on large FIRMS and clients of the risk field.

According to a financial expert, in an environment of low interest rates, personal credit loan channel is attractive to the URBAN COMMERCIAL due to higher loan yields. However, the risk will increase progressively if inflation rise again, interest rate increases affect the ability to pay the debt in this client group, so the URBAN COMMERCIAL also need to be cautious. Many URBAN COMMERCIAL aim to invest more on personal credit plate, when consumer credit growth in 2016 have 39% growth rate compared to the previous year.

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