Banks in Vietnam expect improved business performance in fourth quarter
Around 88% of credit institutions expect to have a higher pre-tax profit in 2018 compared to 2017.
Around 80% of credit institutions predict improved business performance in the fourth quarter of 2018 and 84.2% see an overall improvement in their business performance in 2018, according to the State Bank of Vietnam (SBV).
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According to the survey, most credit institutions witnessed positive growth rate in their business results in the third quarter, albeit at a lower rate compared to the previous one, and set higher targets for this year.
The survey also showed that 72.6% of credit institutions saw improvement in their business performances in the third quarter compared to the previous one, in which 15.8% stated "much improvement".
Around 88% of credit institutions expect to have a higher pre-tax profit in 2018 compared to 2017, 5.3% predict the figure would stay the same and 6.4% are concerned over a decline in profit.
Meanwhile, the average profit growth of the banking system is predicted to increase 18.63% year-on-year in 2018, lower than the expectation of 19.05% recorded in a survey three months ago, but much higher than the rate of 13.63% of the same period last year.
Liquidity of the banking system continues to improve, and it remains in a good state for both foreign and domestic currencies, which is expected to be extended in the upcoming quarter and for the whole year.
In addition to positive prospects of business performance, 56.84% of credit institutions have employed additional workers in the third quarter (higher than the rate of 46% recorded in the previous quarter); 26.6% were short of workers and 61.46% planned to employ more in the upcoming quarter.
Moreover, on the back of stable interest rates, the mobilizing capital of the whole system is expected to increase by 5.83% on average in the fourth quarter (higher than the actual and expected rate of the same period in 2017) and 15.34% for 2018 (higher than the actual rate of 14.98% but lower than the expected rate of 16% for 2017).
Credit institutions expect the outstanding loans of the banking system to grow by 4.52% in the fourth quarter, and up 15.22% in 2018.
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