Majority of credit institutions forecast profit growth in 2024

A total of 86.2% of credit institutions expect their profit this year to grow compared to 2023, according to the latest survey of the State Bank of Vietnam (SBV).

Majority of credit institutions forecast profit growth in 2024 hinh anh 1

The headquarters of the State Bank of Vietnam (SBV).(Photo: VNA)

A total of 86.2% of credit institutions expect their profit this year to grow compared to 2023, according to the latest survey of the State Bank of Vietnam (SBV).

Under the survey released recently, credit institutions said the overall business performance and pre-tax profit of the banking system in the first quarter of 2024 were not as good as expected. However, they expect it will be better in the second quarter of 2024 and the whole year.

According to the credit institutions, interest rate, credit and foreign exchange rate policies are the most important factors that will positively affect their business performance for the whole of this year.

Under the survey, credit institutions also predict customers' demand for banking services will improve in 2024 due to the expectation that the economy and the manufacturing industry will have positive developments, exports will gradually recover, and loan demand will be higher than deposit demand.

According to credit institutions, the good liquidity of the banking system in the first quarter of 2024 will continue in the second quarter and the whole year.

Capital mobilisation of the entire banking system is expected to increase by 3.5% on average in the second quarter, and 9.9% in the year, lower than the expected level of 12% recorded in the previous survey.

Meanwhile, outstanding loans of the system are predicted to rise by 3.8% on average in the second quarter and 13.6% in the year, down 0.6 percentage points compared to the forecast of 14.2% in the previous survey.

According to finance expert Nguyen Tri Hieu, as credit growth plays a key role in banks earning profits, the outlook for the banking industry in 2024 is expected to be more positive than last year thanks to higher credit growth.

“I think credit growth this year will improve as the world’s economy recovers and exports increase. This will create more jobs and boost consumer spending, which will help business prospects of firms become more positive, and they will have higher capital demand,” Hieu said.

Hieu said the Government’s fiscal policies and the SBV’s credit policies related to lowering interest rates would also drive credit growth this year./.

Source: VNA
en.vietnamplus.vn

Related News

Latest News

Improve Tax law compliance by enhancing information collection and analysis

Improve Tax law compliance by enhancing information collection and analysis

VCN – Determining information collection as key role, over the past time, the Tax industry has implemented many information collection solutions.
VND83,000 billion of State budget 2023 saved in 2023

VND83,000 billion of State budget 2023 saved in 2023

VCN - In 2023, the management of state budget expenditure was implemented proactively and strictly according to estimates, ensuring correct policies and regimes, thoroughly saving regular expenditures, and cutting down on unnecessary and slow spending tasks.
Banks promote online lending services

Banks promote online lending services

Banks are strongly stepping up online lending services via digital channels.
Complete tax compliance management for business households and individuals

Complete tax compliance management for business households and individuals

VCN - Facing with the situation where there are still businesses hiding in the shadow of business households or business households with revenue of hundreds of billions of dong using many invoices to increase input costs, the General Department of Taxation said it would strengthen management to reduce fraud and tax evasion for individuals and business households.

More News

Companies unveil M&A plans across multiple sectors at shareholders

Companies unveil M&A plans across multiple sectors at shareholders' meetings

The current General Meeting of Shareholders (AGM) season has revealed notable M&A plans by companies, encompassing various industries including agriculture, food, automobile design and real estate.
How did many banks

How did many banks' profits surge in Q1 2024?

VCN - The business results for Q1 2024 of commercial banks showed positive growth, with some banks experiencing up to 165% growth. Despite low credit growth, the banks' growth stemmed from other types of business and services.
New regulations in Circular 24/2024/TT-BTC aim to build streamlined and effective accounting apparatus

New regulations in Circular 24/2024/TT-BTC aim to build streamlined and effective accounting apparatus

VCN - Circular No. 24/2024/TT-BTC that provides guidelines for public sector accounting will take effect from January 1, 2025 and will be applied from fiscal year 2025, will have regulations to meet requirements of streamlined and effective accounting apparatus.
A series of solutions to improve administrative reform results in the Finance sector

A series of solutions to improve administrative reform results in the Finance sector

VCN - According to recently announced results, the Ministry of Finance is in the group of 3 leading ministries and ministerial-level agencies in the Administrative Reform Index 2023. However, some component criteria of the Ministry of Finance are still ranked at the lower level. To overcome this, the Finance sector proposed many synchronous and key solutions.
After six consecutive increase years, tax revenue from real estate transfer plunges

After six consecutive increase years, tax revenue from real estate transfer plunges

VCN – In 2023, real estate market was in extremely difficult time, purchasing power and liquidation had a sharp decline and there was a lack of cash flow, the amount of personal income tax (PIT) from real estate transfer activities plunged.
Improve processes and enhance experience to rebuild trust in life insurance

Improve processes and enhance experience to rebuild trust in life insurance

VCN - In Vietnam, the space and potential of the life insurance industry is still very large, so it is necessary to focus on implementing new solutions, improving product quality, and helping the market develop sustainably.
PM chairs meeting on fiscal, monetary policy management

PM chairs meeting on fiscal, monetary policy management

Prime Minister Pham Minh Chinh chaired a meeting in Hanoi on May 16 with ministries and agencies to discuss the coordination of fiscal and monetary policies aimed at maintaining macroeconomic stability, controlling inflation and promoting growth.
Many tax management solutions for e-commerce

Many tax management solutions for e-commerce

VCN - In Vietnam, the e-commerce market is increasingly growing and expanding with a diversity of operating models, many participants... posing great challenges for tax management.
Completely resolve problems and accelerate public investment disbursement

Completely resolve problems and accelerate public investment disbursement

VCN - In the first 4 months of 2024, the disbursement of public investment capital reached 17.46% of the plan assigned by the Prime Minister, higher than 15.65% in the same period last year. However, to further speed up this work, the Ministry of Finance believed that it needed to urgently overcome problems that have existed for a long time, especially in key projects.
Read More

Your care

Latest Most read
Improve Tax law compliance by enhancing information collection and analysis

Improve Tax law compliance by enhancing information collection and analysis

VCN - Over the past time, the General Department of Taxation has implemented many methods for information collection such as collecting information from tax management data of Tax authority; gathering information under coordination regulations between Tax
VND83,000 billion of State budget 2023 saved in 2023

VND83,000 billion of State budget 2023 saved in 2023

VCN - In 2023, the management of state budget expenditure was implemented proactively and strictly according to estimates, ensuring correct policies and regimes, thoroughly saving regular expenditures, and cutting down on unnecessary and slow spending tasks.
Banks promote online lending services

Banks promote online lending services

Banks are strongly stepping up online lending services via digital channels.
Complete tax compliance management for business households and individuals

Complete tax compliance management for business households and individuals

VCN - Facing with the situation where there are still businesses hiding in the shadow of business households or business households with revenue of hundreds of billions of dong using many invoices to increase input costs, the General Department of Taxation said it would strengthen management to reduce fraud and tax evasion for individuals and business households.
Companies unveil M&A plans across multiple sectors at shareholders

Companies unveil M&A plans across multiple sectors at shareholders' meetings

The current General Meeting of Shareholders (AGM) season has revealed notable M&A plans by companies, encompassing various industries including agriculture, food, automobile design and real estate.
Mobile Version