Want to be in the loop?
subscribe to
our notification
Business News
BANKS ANTICIPATE UPWARD MOMENTUM IN 2023
Bank profit is anticipated to be stellar in Q4/2022, with the financial announcement season to take place after the Lunar New Year holiday, providing a catalyst for the industry to advance.
Though banks have yet to release their Q4/2022 financial reports officially, industry experts assumed there would be a sharp division in the profit picture among banks, with a ‘comeback’ in the state lenders grouping.
During 2020-2021, banks were constrained in their efforts to support people and businesses who were little affected by the pandemic and requirements to make loan loss provisioning.
Closing 2022, Vietcombank’s pretax profit hit $1.6 billion, up 39 per cent on-year, this figure at BIDV was $980.8 million, soaring nearly 80 per cent and at VietinBank eyed a 21.5 per cent jump to reach $891.3 million.
Credit channelling into priority areas, interest rates set at reasonable levels, and good asset quality are the reasons the central bank (SBV) has allocated more credit limits to state lenders, helping banks to improve business performance.
According to analysts at VNDirect Securities, the bank sector growth fetches 32 per cent in 2022 before slowing down to expand just 10 per cent in 2023 due to sliding credit growth, tighter net profit margin and higher credit expense.
Notwithstanding, banks with underestimated share value, sound capital buffer, high capital adequacy ratio and healthy credit structure are deemed as having space for further growth as they would be prioritised for credit limit provision in 2023.
Nguyen Hoai Phuong, investment director at Vietnam-focused stock venture fund VESAF under VinaCapital, said that this year they are considering hiking the proportion of bank tickers in their portfolio, particularly those with competitive advantages in liquidity, diversified lending structure with sound risk management capacity.
Le Duc Khanh, director of Analysis at VPBank Securities, noted that it was too early to make assessments about the growth trend of banks, yet it was more likely that they would lead the stock market to the 1,060-1,100 score range before being overtaken by other sectors with smaller capitalisation.
Huynh Minh Tuan, founder and CEO of investment firm FIDT said, “Banks will prevail once their liquidity crisis is fixed as this group sits atop the chain of income-raising and investment activities."
Source: VIR
Related News
DIGITAL TRANSFORMATION IN LOGISTICS – A KEY TO UNLOCKING SUSTAINABLE E-COMMERCE AND ECONOMIC DEVELOPMENT
Accelerating digital transformation in logistics is critical in order to promote the sustainable development of e-commerce, a conference on applying technology held by the Ministry of Industry and Trade heard on Thursday, as well as accelerating overall economic growth.
SOILBUILD EXTENDS ITS HORIZONS INTO VIETNAM INDUSTRIAL REAL ESTATE
Soilbuild Group, an integrated real estate group, has broadened its investment in industrial real estate to Vietnam through its Soilbuild International division. The official launch of Soilbuild International (Vietnam) took place in Hanoi on May 9th, 2024, and was attended by esteemed guests, including domestic and international partners.
SEMINAR: BUSINESS SPOTLIGHT - THE HONG KONG-INSPIRED PRESENCE NESTLED IN THE HEART OF HANOI'S EAST
16h00 - 18h00, Wednesday (May 22nd, 2024)Almaz Convention Center - Hanoi (GG map: https://maps.app.goo.gl/YtWyGgkiTwWvFnfX6)
VIETNAM SECURES REMARKABLE ECONOMIC SUCCESSES SINCE NATIONAL REUNIFICATION
Since the national reunification on April 30, 1975, Vietnam has obtained admirable economic achievements and is now on its way to become the 20th largest economy in the world. Back to 1975, Vietnam, torn by two major wars, was a backward economy dependent on agriculture and foreign assistance. Foreign loans and aid accounted for over 63 percent of its budget.
350 EXHIBITORS TO TAKE PART IN HCM CITY PAPER, COATINGS, RUBBER, PLASTIC EXPOS
They will have a total display area of 10,000sq.m, 30 per cent more than last year, and the participation of over 350 local and international exhibitors who will showcase thousands of products and technologies.
INT’L INVESTORS EYE VIETNAM’S DATA CENTER MARKET – REPORT
Vietnam’s data center market is increasingly attractive to foreign investors, driven by the country’s expanding digital economy, rising data consumption, and supportive government policies, said a new report by JLL. While Vietnam’s data center sector has traditionally been dominated by local telecommunications companies, global players are now entering the market.