Credit institutions expect improved business performance in 2018
A majority of credit institutions expect business performance this year will be better than 2017, according to the latest survey conducted by the State Bank of Vietnam on business trend among credit institutions in September.
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| A majority of credit institutions expect business performance this year will be better than 2017 |
Around 88% of credit institutions expect to have a higher pre-tax profit in 2018 compared to 2017, and only 5.3% predict the figure would stay the same, while 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.
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.
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% reported "much improvement".
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 outstanding loans of the banking system to grow by 4.52% in the fourth quarter, and up 15.22% for the entire year.
