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.
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.
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