Banks cautious about profit targets for 2023

Illustrative image (Source: VNA)

Commercial banks will hold annual general meetings of shareholders (AGM) next quarter to map out production and business plans for 2023.

Documents prepared for the upcoming AGMs show some banks are cautious about profit targets set for this year.

Nam A Bank set a target of consolidated pre-tax profit of 2.4 trillion VND (101.160 million USD) this year, an increase of only 5-6% compared to last year. In 2022, the bank recorded a pre-tax profit of nearly 2.27 trillion VND, up 26.1% over the previous year, close to the bank’s set target of 2.25 trillion VND.

Vietnam International Bank (VIB) expects pre-tax profit in 2023 to reach 12.2 trillion VND, up 15.3% compared to 2022. Although 2023’s profit is expected to still increase by a double-digit figure, the growth rate decreases by half compared to last year's profit plan. Last year, VIB set a target to increase profit by 31% compared to 2021.

Earlier, Vietcombank’s leaders said the bank aims to increase its 2023 pre-tax profit by at least 12% compared to 2022. In 2022, Vietcombank recorded a 39% increase in pre-tax profit, up 19% against the yearly set target.

Eximbank late last year announced its business plan for 2023 with a pre-tax profit target of 5 trillion VND, up 35% compared to last year’s figure of 3.7 trillion VND.

An SBV Q1 2023 business performance survey also showed commercial banks were more cautious when forecasting.

According to the survey, only more than half of banks expect their business performance to improve in 2023, but the improvement is lower compared to 2022.

Experts also forecast the banking industry will continue to face difficulties in 2023 in the context of the real estate market downtrend and the less positive import and export outlook./.

VNA