Real estate business loans skyrocketed at many large banks

In the first 9 months of the year, real estate business loans at some large banks increased by dozens, even hundreds of percent, many times higher than the general credit growth rate.

The third quarter financial report shows that outstanding real estate business loans of many large private banks increased very strongly in the first 9 months of the year. These are also the banks with the highest loan growth rate in the system.

For example, at Bank T., credit growth in the first 9 months of the year reached 13.5%, mainly coming from the large corporate customer segment (of which 71% of the portfolio is real estate and construction businesses). construction and construction materials with outstanding debt of VND 223,650 billion).

Real estate business loans alone recorded nearly 160,238 billion VND (accounting for 34.63% of total outstanding loans), a slight increase compared to the end of the second quarter but an increase of 47% compared to the beginning of the year (equivalent to an increase of more than 51,000 billion VND).

In a recent business results update, a representative of this bank said that in the context of the general credit demand of the entire economy being quite weak, the bank's customers still have capital needs, so loan disbursement is Very good. At the same time, the projects the bank lends are all projects with potential for sale and growth. Therefore, corporate customers are still confident in withdrawing capital to deploy projects and prepare for business plans in the next periods.

Similarly, outstanding loans for real estate business at V Bank at the end of the third quarter also increased by 45% compared to the end of 2022, to more than 98,192 billion VND and accounting for 18.83% of total outstanding loans.

At S. Bank, outstanding real estate business loans as of September 30 reached more than 67,620 billion VND (accounting for 16.08% of total outstanding loans), an increase of 115% compared to the beginning of the year (31,493 billion VND, accounting for 6 .75%).

At the same time, at Bank H., real estate business credit increased by 70% to VND 35,668 billion, accounting for 12.22% of the total outstanding loans.

At Bank M., real estate business credit also increased by nearly 62% to VND 34,507 billion at the end of the third quarter, nearly 4 times higher than the growth rate of overall outstanding loans. Thereby, the proportion of real estate business loans in total outstanding loans increased from 4.64% at the end of last year to 6.44%.

In the newly released third quarter real estate market report, the Ministry of Construction cited data from the State Bank saying that as of August 31, 2023, outstanding credit debt for real estate business activities reached 986,477. billions dong.

Previously, outstanding credit debt for real estate business activities by the end of 2022 reached about VND 800,000 billion. Thus, in the first 8 months of 2023, banks have injected nearly 186,500 billion VND into real estate business activities.

Also according to data from the State Bank, credit growth across the economy in the first 8 months of the year only reached 5.57%, equivalent to an increase of nearly 663,900 billion VND. Thus, more than 28% of the total credit increase in the first 8 months of the year was contributed by the real estate business sector. Or to put it simply, for every 100 VND of additional credit in the first 8 months of the year, 28 VND flows into real estate business activities.

The real estate business credit situation increased much faster than general credit growth in the context of the real estate market recovering quite slowly.

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In Official Dispatch No. 993/CD-TTg dated October 24, 2023, the Prime Minister requested the Governor of the State Bank of Vietnam to direct commercial banks to continue promoting credit lending to the real estate sector. movables; Have appropriate solutions to reduce costs to reduce interest rates;

Continue to review and further reduce inappropriate, troublesome and costly administrative procedures so that businesses, real estate projects and home buyers can access credit capital more conveniently. There are special credit promotion policies for feasible real estate projects with fast implementation progress, creating motivation for growth and promoting the real estate market.

In addition, the Prime Minister also requested the State Bank of Vietnam to preside over and coordinate closely with the Ministry of Construction to carefully review loan conditions and procedures to be convenient, open, controllable and speed up the implementation of the Program. 120,000 billion VND credit for preferential loans to develop social housing, worker housing, renovate and rebuild old apartments.

Direct Commercial Banks to urgently guide credit loan procedures for projects that have been declared eligible and have loan needs for both investors and home buyers of the program. credit of 120,000 billion VND.

In a related development, tomorrow morning (November 13), the State Bank and the Ministry of Construction will coordinately organize an online conference to deploy Official Dispatch 933 on continuing to drastically implement development solutions. The real estate market develops safely and healthily.

Accordingly, the Governor of the State Bank and the Minister of Construction, leaders of many ministries such as: Government Office, Ministry of Public Security, Ministry of Finance, Ministry of Planning and Investment, Ministry of Natural Resources and Environment, Ministry of Justice join this conference.