6-9-2023 (HANOI) The Vietnamese banking industry is poised to confront a more challenging outlook this year, marked by lower credit growth and a decrease in profits, as reported by local newspaper Vietnam News on Tuesday, citing insights from experts.
According to a recent report, it is anticipated that the credit growth for the entire banking sector in 2023 will range between 12 percent and 14 percent.
The report, issued by a local securities company, also projects that pre-tax profits for the entire banking industry will decelerate in 2023, with an expected growth rate of approximately 10 percent to 12 percent.
Notably, there will be notable disparities in profit prospects among various groups of banks, particularly with small-sized banks potentially experiencing a significant drop in profit growth throughout 2023.
Many of these smaller banks have set relatively modest profit growth targets of only 10 percent to 15 percent for the year, a stark contrast to the impressive figures of 32 percent to 35 percent seen in the 2021-22 period.
The first half of 2023 witnessed credit growth in the industry lagging behind the corresponding period in the previous year, largely due to elevated lending interest rates.
However, there is an expectation that during the second half of the year, actions taken by the State Bank of Vietnam will contribute to a reduction in lending rates and an enhancement of credit growth within the industry, as reported by the newspaper.
