Vietnamese lenders are hoping for at least 20% – 30% growth in their earning this year in the light of the country’s promising economic outlook.
The banks are looking forward to another good year with big earnings on the back of a projected GDP growth rate of 6% – 7%, high COVID-19 vaccine coverage, export surges, and the government’s new support programmes to be underway.
The national programme for socio-economic recovery and development will set a scene for recovering and boosting investment, production and consumption, which in return fuel the expansion of the banking industry in 2022, said Dr. Can Van Luc, a member of the National Monetary and Financial Advisory Council and chief economist of the Bank for Investment and Development of Vietnam (BIDV).
VPBank is setting its sight on an average annual growth of 30% – 35% in profit over the next 5 years. Vietnam International Bank (VIB) is also hoping for its profit to soar over 30% annually during the same period.
Vietnam will be among the fastest-recovering economy in the region with GDP growth projected at around 6% – 6.5% thanks to its strong economic foundation and accommodative macro-economic policies, said VIB CEO Han Ngoc Vu.
There are still potential risks like inflation and slow recovery of several industries but generally, this year’s economic prospects are brighter than the previous year’s, VPBank Deputy CEO Luu Thi Thao said.
Banking is expected to be among the best performers in 2022, she noted, adding that the sector’s growth will come not only from credit recovery but also non-interest earnings and cost cut.