Sunday, December 4 2016

VietNamNews

Credit institutions optimistic

Update: April, 07/2016 - 09:00
Credit growth is expected to hit the five-year-high record, surging 20.09 per cent this year, while capital mobilisation will rise 17.54 per cent. — Photo VNA

HÀ NỘI (VNS) — Most credit institutions expected their business performance to see sustained growth this year due to good liquidity and decreasing risks and bad debts, according to a State Bank of Viet Nam (SBV)’s survey.

Under the survey, some 92 per cent of the surveyed institutions said their business performance this year would be better than in 2015. Among them, 37.6 per cent expected "a much better result."

The respondents expected their profits to rise by 12.67 per cent this year due to net income from interest, fees and services. Despite remaining relatively high, the expectation of profit had dropped compared with the Q1 survey conducted earlier this year, when it was set at 14.39 per cent.

Credit growth is expected to hit the five-year-high record, surging 20.09 per cent this year, while capital mobilisation will rise 17.54 per cent.

According to the institutions, the liquidity of the banking system is currently good for both the đồng and foreign currencies. They expected the strong liquidity to be maintained in the next quarter and throughout the year.

As for the first quarter, 68.3 per cent of the surveyed institutions said their business performance results had continually improved against the previous quarter.

Some banks have so far also targeted optimistic business performance results this year.

This week, Vietcombank said it would aim to add 10 per cent in pre-tax profits to reach VNĐ7.5 trillion (US$333 million) this year.

According to a statement prepared for its shareholders’ meeting, due to be held in mid April, the Hà Nội-based bank’s deposits are set to rise 15 per cent to reach VNĐ578.458 trillion in 2016, while its outstanding loans will rise 17 per cent to touch VNĐ452.967 trillion.

The bank, with total assets worth VNĐ673.910 trillion as of the end of last year, earned VNĐ1.3 trillion in revenue in the first two months of this year, after having to spend roughly VNĐ900 billion on provisional costs.

Nam A Bank also plans to report a pre-tax profit of VNĐ300 billion this year, an increase of 19 per cent over last year.

This year, deposits at Nam A Bank are expected to grow by 17 per cent year-on-year to reach VNĐ28.5 trillion, and its outstanding loans are expected to rise by 20 per cent year-on-year to VNĐ25 trillion. - VNS

 

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