WILL VIETNAM BANKING INDUSTRY BE AN ECONOMIC PILLAR?

Vietnam Banking Industry overview in Q2 and outlook in Q3/2021:

Total net profit of 17 listed banks increased sharply thanks to strong credit growth, improved NIM, and lower cost/income ratio (CIR). However, credit of the whole industry at the end of June increased by 6.44% compared to the beginning of the year from 2.95% at the end of March, and nearly doubled the increase of 3.65% of 6M20. However, credit growth is slowing down during the period of social distancing. Credit growth in July and August only increased by 0.9%, bringing the credit growth of the whole system to 7.4% at the beginning of the year and the end of August 2021.

Experts forecast that the credit growth of the whole industry will stop at 10-12% based on the possibility that credit demand has not recovered after the gap. The banking industry is a typical investment choice in the context of the post-pandemic recovery of the economy. Banks’ share prices have now corrected about 15% from their peak and partly reflect the negative impact of the current outbreak.

 

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Above is the information compiled from ‘VIETNAM BANKING REPORT Q3/2021’ made by VIRAC. The full report will provide customers with in-depth analysis information on macroeconomics, financial rates, reserve fund accompanied by some financial indexes on the Vietnam banking market in 2021.

For the full contents of the report, please leave your information here.

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