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

Banks strengthen information security systems

Banks strengthen information security systems

Banks often face attacks from high-tech criminals to steal customer data to conduct property appropriation fraud. Therefore, banks must strengthen defence measures to ensure safety and security in their systems.
“Opportune environment” for growth of insurance enterprises

“Opportune environment” for growth of insurance enterprises

VCN - According to the Ministry of Finance, in the first quarter of 2024, total assets of insurance enterprises are estimated to reach VND 934.8 trillion, an increase of 11%; Investment back into the economy is estimated at VND 7,776.5 trillion, an increase of 8.7%. These are positive numbers for insurance enterprises to expect positive business results for the whole year 2024.
Closely monitoring fluctuations to calculate the appropriate time to adjust prices

Closely monitoring fluctuations to calculate the appropriate time to adjust prices

VCN - According to a report from the Ministry of Finance, in the second quarter and the remaining months of 2024, price management needs to ensure inflation control and continue to support the removal of difficulties for business.
Strictly monitor market fluctuations to appropriately adjust prices

Strictly monitor market fluctuations to appropriately adjust prices

VCN – In the second quarter and the remaining months of 2024, the price management and administrations need to effectively control inflation and remove difficulties for production and businesses, the Ministry of Finance reports.

More News

Closely monitoring market fluctuations to consider appropriate time to adjust prices

Closely monitoring market fluctuations to consider appropriate time to adjust prices

VCN - According to a report from the Ministry of Finance, in the second quarter and the remaining months of 2024, price management and administration need to ensure good control of inflation and continue to remove difficulties for production and business.
How does the Land Development Fund work effectively?

How does the Land Development Fund work effectively?

VCN - Speaking at the Conference to collect opinions on the draft Government Decree regulating the Land Development Fund held by the Ministry of Finance on April 22, Deputy Minister of Finance Bui Van Khang emphasized the necessity of the development of the Government Decree regulating the Land Development Fund.
Vietnam seeks to remove obstacles in upgrade of securities market

Vietnam seeks to remove obstacles in upgrade of securities market

The State Securities Commission of Vietnam (SSC) recently held an online working session with the World Bank (WB) and the Asia Securities Industry and Financial Markets Association (ASIFMA) to discuss ways to remove obstacles related to criteria for upgrading the Vietnamese securities market.
Price stability from supply increase and transparency in trading in gold market

Price stability from supply increase and transparency in trading in gold market

VCN - To stabilize the gold market, economic expert Prof.Dr. Tran Tho Dat, a member of the Prime Minister's Economic Advisory Group, said that it is necessary to implement solutions to make all transactions transparent in the gold market, implement electronic invoices as well as pay taxes in gold investment activities.
SBV takes more actions to stabilise foreign exchange rates

SBV takes more actions to stabilise foreign exchange rates

The State Bank of Vietnam (SBV) on April 23 took some moves like issuing treasury bills (T-bills), further employing T-bills as an open market operation (OMO), and stipulating liquidity and interest rates in the inter-bank market in the face of surging USD/VND exchange rates.
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

VCN - The revised Draft Law on Value Added Tax (VAT), besides inheriting many provisions from the current Law, also revises and supplements several contents to suit the actual situation, including some notable contents in VAT refund.
Corporate bond maturity in 2024 remains high: MoF

Corporate bond maturity in 2024 remains high: MoF

The volume of corporate bonds maturing in 2024, though lower than that in 2023, is till at a high level, mostly in industries with payment risks such as real estate and renewable energy, according to a report by the Ministry of Finance (MoF).
Support clearance procedures for imported gold for bidding

Support clearance procedures for imported gold for bidding

VCN - The State Bank (SBV) has sent a document to competent ministries and branches requesting coordination in implementing the Prime Minister's direction in gold market management.
The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low

The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low

VCN - According to forecasts, Vietnam's financial sector in 2024 will be more positive, with the exchange rate gradually cooling down from the end of the second quarter of 2024, while interest rates will remain low to promote growth.
Read More

Your care

Latest Most read
Banks strengthen information security systems

Banks strengthen information security systems

Banks often face attacks from high-tech criminals to steal customer data to conduct property appropriation fraud. Therefore, banks must strengthen defence measures to ensure safety and security in their systems.
“Opportune environment” for growth of insurance enterprises

“Opportune environment” for growth of insurance enterprises

VCN - According to the Ministry of Finance, in the first quarter of 2024, total assets of insurance enterprises are estimated to reach VND 934.8 trillion, an increase of 11%; Investment back into the economy is estimated at VND 7,776.5 trillion, an increa
Closely monitoring fluctuations to calculate the appropriate time to adjust prices

Closely monitoring fluctuations to calculate the appropriate time to adjust prices

According to a report from the Ministry of Finance, in the second quarter and the remaining months of 2024, price management needs to ensure inflation control.
Strictly monitor market fluctuations to appropriately adjust prices

Strictly monitor market fluctuations to appropriately adjust prices

VCN – In the second quarter and the remaining months of 2024, the price management and administrations need to effectively control inflation and remove difficulties for production and businesses, the Ministry of Finance reports.
Closely monitoring market fluctuations to consider appropriate time to adjust prices

Closely monitoring market fluctuations to consider appropriate time to adjust prices

VCN - According to a report from the Ministry of Finance, in the second quarter and the remaining months of 2024, price management and administration need to ensure good control of inflation and continue to remove difficulties for production and business.
Mobile Version