Revenue from collecting loans for science and technology increased over the years from 2017 to 2019. Specifically, in 2017 it reached 68,541 million VND, in 2018 it increased by 51,131 million VND, equivalent to an increase of 74.6%. In 2019 it was 137,625 million VND, an increase of 15% compared to 2018.
2.2.4 Outstanding loans and outstanding loan ratio for individual customers at Joint Stock Commercial Bank for Foreign Trade of Vietnam - Thanh Xuan Branch
With a team of young, strong, qualified credit officers and reasonable work arrangements; the system of credit process documents is deployed specifically and in detail to each officer; the outstanding loan balance of VCB - Thanh Xuan Branch is increasingly improved. In addition, training has also been paid attention to by the leaders, credit officers are regularly trained to improve their professional qualifications as well as acquire new modern credit products. In the period of 2017-2019, the lending activities of VCB have achieved the following specific results:
Table 2.6: Outstanding loans of individual customers at Joint Stock Commercial Bank for Foreign Trade of Vietnam - Thanh Xuan Branch - period 2017 - 2019
Unit: million VND
Target
2017 | 2018 | 2019 | Compare 2018/2017 | Compare 2018/2017 | |||
Number money | Proportion | Amount | Proportion | ||||
Total outstanding loans | 350,094 | 449,607 | 594,545 | 99,513 | 28.42 | 144,938 | 32.24 |
Outstanding loans to CN customers | 285,710 | 303,726 | 359,665 | 18,016 | 6.31 | 55,939 | 18.42 |
Ratio of outstanding debt of science and technology/Total outstanding debt | 81.61 | 67.55 | 60.49 | ||||
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( Source: Business performance report of VCB - Thanh Xuan Branch in 2017, 2018, 2019)
Regarding the scale of lending to science and technology of VCB - Thanh Xuan Branch in the period of 2017-2019, it has gradually built a foundation and promoted the implementation of lending to science and technology with outstanding loans in 2017 reaching VND 285,710 million and increasing to VND 303,726 million in 2018 with a rate of 6.31%. By 2019, lending to science and technology was continued to be promoted by VCB - Thanh Xuan Branch and reached VND 359,665 million, an increase of 18.42%. This shows that in the total outstanding loan structure, outstanding loans to science and technology of VCB - Thanh Xuan Branch accounted for a high proportion and increased rapidly over the years. This proves that VCB Thanh Xuan has made great efforts in expanding the scale and proportion of lending to science and technology in the past time.
2.2.5 Structure of outstanding loans to individual customers according to criteria at Joint Stock Commercial Bank for Foreign Trade of Vietnam - Thanh Xuan Branch
2.2.5.1 Structure of outstanding loans to individual customers over time
Let's take a look at the outstanding loan balance of KHCN over time at VCB - Thanh Xuan Branch from 2017 to 2019 through table 2.7 below:
Table 2.7: Outstanding loans to individual customers over time at VCB
- Thanh Xuan branch period 2017 - 2019
Unit: million VND
Target
2017 | 2018 | 2019 | Compare 2018/2017 | Compare 2018/2017 | |||
Number money | Proportion | Number money | Proportion | ||||
Total outstanding loans for science and technology | 285,710 | 303,726 | 359,665 | 18,016 | 6.31 | 55,939 | 18.42 |
Short term | 99,897 | 116.6 | 120,132 | 16,703 | 16.72 | 3,532 | 3.03 |
Medium and long term | 185,813 | 187,126 | 239,533 | 1,313 | 0.71 | 52,407 | 28.01 |
( Source: Business performance report of VCB - Thanh Xuan Branch in 2017, 2018, 2019)
Chart 2.1: Chart of science and technology loan structure in 2017 - 2019 by credit term
300,000
250,000
200,000
Short-term outstanding debt of CVKHCN
150,000
Medium and long-term outstanding debt of CVKHCN
100,000
50,000
0
2017
2018
2019
Looking at Table 2.5 and the chart above, it can be seen that outstanding loans for science and technology are mainly focused on medium and long-term loans for science and technology. In 2017, outstanding loans for science and technology in medium and long term were VND 185,813 million, accounting for 65.04% of total outstanding loans for science and technology. In 2018, outstanding loans for science and technology in medium and long term were VND 187,126 million, accounting for 61.61% of total outstanding loans for science and technology, increasing by VND 1,313 million, equivalent to an increase of 0.71% compared to 2017. In 2019, outstanding loans for science and technology in medium and long term were VND 239,533 million, an increase of VND 52,407 million, equivalent to 28.01% compared to 2018.
2.2.5.2 Structure of outstanding personal loans by collateral
Considering the structure of outstanding loans for science and technology based on collateral, at VCB - Thanh Xuan Branch, the proportion of loans with collateral accounts for the majority of the total outstanding loans for science and technology. Therefore, the branch has the ability to minimize possible credit risks. In 2017, outstanding loans for science and technology with collateral were VND 210,610 million, accounting for 73.71% of the branch's total outstanding loans for science and technology.
In 2018, the outstanding loan balance for science and technology with collateral was VND 237,322 million, accounting for 78.14% of the outstanding loan balance for science and technology and increased by VND 26,712 million, equivalent to an increase of 12.68% compared to 2017. In 2019, the outstanding loan balance for science and technology with collateral was VND 289,558 million, accounting for 80.51% of the total outstanding loan balance for science and technology, an increase of VND 52,236 million, equivalent to an increase of 22.01% compared to 2018.
Table 2.8: Outstanding loans to individual customers by collateral at Joint Stock Commercial Bank for Foreign Trade of Vietnam - Thanh Xuan Branch - period 2017 - 2019
Unit: million VND
Target
2017 | 2018 | 2019 | Compare 2018/2017 | Compare 2018/2017 | |||
Number money | Proportion | Number money | Proportion | ||||
Total outstanding loans for science and technology | 285,710 | 303,726 | 359,665 | 18,016 | 6.31 | 55,939 | 18.42 |
Outstanding loans for science and technology with collateral | 210,610 | 237,322 | 289,558 | 26,712 | 12.68 | 52,236 | 22.01 |
Outstanding loans for science and technology without collateral | 75,100 | 66,404 | 70,107 | -8.696 | -11.58 | 3,703 | 5.58 |
( Source: Business performance report of VCB - Thanh Xuan Branch in 2017, 2018, 2019)
Chart 2.2: Chart of the structure of science and technology loans in 2017-2019 by collateral
350,000
300,000
250,000
200,000
150,000
Outstanding debt of CVKHCN with secured assets
Outstanding debt of CVKHCN without collateral
100,000
50,000
0
2017
2018
2019
2.2.5.3 Structure of outstanding personal loans by loan purpose
Table 2.9: Outstanding loans to individual customers by loan sector at VCB
- Thanh Xuan branch period 2017 - 2019
Unit: million VND
Target
2017 | 2018 | 2019 | ||||
Amount | Ratio weight | Amount | Ratio weight | Number money | Ratio weight | |
Total outstanding loans for science and technology | 285,710 | 100 | 303,726 | 100 | 359,665 | 100 |
1. Loans for science and technology for production and business purposes | 134,386 | 47.04 | 146,851 | 48.35 | 178,825 | 49.72 |
2. Loans for science and technology for consumption purposes | 151,324 | 52.96 | 156,875 | 51.65 | 180,840 | 50.28 |
( Source: Business performance report of VCB - Thanh Xuan Branch in 2017, 2018, 2019)
Chart 2.3: Structure of science and technology loans by loan purpose
52.96%
Year 47.04% | 2017 Production and business Consumption | 51.65% | 2018 Manufacture 48.35% Consumer business | |
50.28% | 2019 49.72% | Production, Business, Consumption | ||
Looking at table 2.9 and chart 2.3, we can see that the structure of KHCN loans of VCB - Thanh Xuan Branch is very suitable for the current trend. Loans for production and business purposes or for consumption purposes are increasing and are both important advantages. The real estate market in Vietnam has been segmented and diversified in both price and type, giving consumers more choices. Although the real estate market is facing many difficulties during this period, these are only temporary difficulties and the market is gradually recovering and developing again. Similarly, consumer lending sales have also grown quite steadily over the years. According to the current trend, people's income is increasing day by day, leading to higher living standards and demands, so consumer lending is considered a potential field. If the Bank knows how to exploit it, it will bring in large income and will be an important part of the Bank's operations.
2.2.6 Bad debt and bad debt ratio in personal loans at Joint Stock Commercial Bank for Foreign Trade of Vietnam - Thanh Xuan Branch
Table 2.10: Bad debt and bad debt ratio in personal customer loans at VCB - Thanh Xuan branch in the period 2017 - 2019
Unit: million VND
Target
Year 2017 | Year 2018 | Year 2019 | |
Total outstanding loans | 350,094 | 449,607 | 594,545 |
Total outstanding loans for science and technology | 285,710 | 303,726 | 359,665 |
Bad debt for science and technology loans | 106 | 113 | 179 |
Ratio of bad debt for science and technology loans/Total outstanding debt (%) | 0.030 | 0.025 | 0.030 |
Ratio of bad debt for science and technology loans/Total outstanding debt of science and technology (%) | 0.0371 | 0.0372 | 0.0497 |
( Source: Business performance report of VCB - Thanh Xuan Branch in 2017, 2018, 2019)
Looking at the table above, we see that in 2017, the overdue debt for science and technology loans was 307 million VND, accounting for an overdue debt ratio of 0.107%. In 2018, the overdue debt for science and technology loans was 365 million VND, accounting for an overdue debt ratio of 0.12%. In 2019, the overdue debt for science and technology loans was 453 million VND, accounting for an overdue debt ratio of 0.126%.
Although the overdue debt ratio for KHCN loans accounts for a small proportion compared to the overdue debt ratio of the Branch, we can still easily see that the overdue debt ratio for KHCN loans still tends to increase over the years. Due to the development and expansion of credit scale, controlling debts also becomes more difficult. Although the overdue debt ratio for KHCN loans of the Branch is low and not alarming, the Branch also needs to pay more attention to customer appraisal, inspection and supervision to better control debt collection, contributing to improving the quality of credit activities.
In 2017, the total bad debt of the branch was VND 106 million, accounting for 0.037% of the total outstanding debt of the branch. By 2018, the bad debt of the branch increased to VND 113 million but the bad debt ratio remained the same as the previous year. In 2019, the bad debt of the branch continued to increase to VND 179 million, but the growth rate of the branch's outstanding debt of the branch (18.42%) was slower than the growth rate of the bad debt of the branch, so the bad debt ratio of the branch increased to 0.049%. This is a problem that the branch needs to overcome in managing the bad debt ratio of the branch's loans. Therefore, the branch needs to have measures to lend more to reduce the bad debt ratio, but when the Bank lends more, it is necessary to strengthen control over the repayment capacity of the loans so that the loans are not transferred to the bad debt group. Therefore, the Bank must have appropriate and optimal measures to further improve the quality of science and technology loans.
2.2.7 Profit from personal lending activities at Joint Stock Commercial Bank for Foreign Trade of Vietnam - Thanh Xuan Branch
Table 2.11: Income from lending to individual customers at VCB – Thanh Xuan Branch - period 2017 – 2019
Unit: million VND
Target
2017 | 2018 | 2019 | |
Total income | 11,558 | 12,811 | 16,768 |
Outstanding loans for science and technology | 285,710 | 303,726 | 359,665 |
Income from lending to science and technology | 5,784 | 7,294 | 9,912 |
TN of Science and Technology Activities/ Total TN (%) | 50.04 | 56.94 | 59.11 |
TN HĐCV KHCN/Outstanding debt of CVKHCN (%) | 2.02 | 2.40 | 2.76 |
( Source: Business performance report of VCB - Thanh Xuan Branch in 2017, 2018, 2019)
Looking at Table 2.11, we see that the income from lending to science and technology has increased over the years, thus leading to a significant portion of the income from scientific and technological activities.