Thursday, December 8, 2022 9:12:08 PM - Markets open
VN-INDEX 1,050.53 +9.51/+0.91%
HNX-INDEX 215.37 +5.44/+2.59%
UPCOM-INDEX 71.62 +1.17/+1.66%
Bank stocks expect a promising year in 2022: experts
Vietnam News - 2/7/2022 10:17:05 AM
 (0 ratings. You must sign in to rate.)
 Analysts of many foreign investment funds and local securities companies expect bank stocks will continue to record positive results in 2022.
 
Bank stocks have been showing impressive performance in recent sessions, playing the role as the market’s leader while most other stock groups plummeted.
 
Foreign investment funds and securities companies are optimistic about the outlook of bank stocks in 2022.
 
In a recent report, foreign fund VinaCapital citing the latest survey results of the State Bank of Vietnam (SBV), said that in the fourth quarter of 2021, the bank business situation had significantly improved compared to the previous quarter. Banks also expect that their business situation will continue to improve further in the first quarter of 2022 and the whole of 2022.
 
"Credit risk is expected to decline slightly in 2022 compared to 2021. Therefore, we expect bank stocks to record positive results in 2022," VinaCapital said in the report. 
 
Analysts from MB Securities Company (MBS) also see promising growth of the banking industry after disruptions caused by the COVID-19 pandemic thanks to favourable macro factors such as rapid economic growth, a stable political situation and the participation in many free trade agreements.
 
In addition, asset quality continued to be improved because of the supportive policies of SBV and the proactive strategy in ensuring the asset quality of commercial banks. MBS also expects the bad debt ratio to improve in 2022, while the bad debt coverage ratio will to continue to be stable.
 
As SBV continues to loosen monetary policy to maintain low interest rates, banks' profit picture is more positive this year. 
 
Capital-raising activities are also one of the highlights of the industry in 2022, as a series of banks announced plans to sell capital to strategic shareholders such as VPBank or Orient Commercial Joint Stock Bank (OCB).
 
Meanwhile, Trần Thị Khánh Hiền, Analysis Director of VNDirect Securities, said that the stock market still attracts domestic investors with a rising number of new accounts. And after realising the risk of investing in stocks that are advertised on online groups, investors will return to basic stocks with transparent information disclosure, and the banking industry will be in focus.
 
However, Hiền said that the profit growth outlook in 2022 will be lower than in 2021 as banks have to balance risk control and expected profit to grow only 19 per cent, which is lower than 2021. 
 
According to the expert from VNDirect, raising capital, extending foreign room and changing trading exchanges are factors affecting bank stocks. In 2022, there will be no leading group and there will be divisions and unequal opportunities among bank stocks. 
 
"And of course, bank stock prices are expected to witness strong divisions according to the profit growth rate and an individual story of each bank," said Hiền. 
 
Bullish business results
 
Ahead of the Tết holiday, many banks reported positive results in 2021 with optimistic goals, promising new breakthroughs this year. 
 
In its fourth quarter business results, OCB said that the bank’s profit after tax rose 24.6 per cent on-year to VNĐ4.4 trillion (US$194.6 million) in 2021.
 
Its return in equity (ROE) and return on assets (ROA) remained at high levels, which was 2.59 per cent and 22 per cent, respectively. OCB’s bad debt ratio was also under control, down 0.45 percentage points year-on-year to 0.97 per cent. 
 
The report showed that as of December 31, the bank’s total assets reached over VNĐ184.4 trillion, up 21 per cent over the same period of 2020.
 
The results were thanks to comprehensive digitisation and effective control in operating costs. 
 
Similarly, despite a challenging year due to COVID-19, Saigon Hanoi Commercial Joint Stock Bank (SHB) still recorded profit before tax of VNĐ6.2 trillion, up 90.3 per cent over 2021, completing 107 per cent of the whole year plan. 
 
As of December 31, SHB's total assets reached VNĐ506.5 trillion, up 23 per cent compared to the end of 2020. The bank’s charter capital was VNĐ26.67 trillion, completing the capital plan, while its own equity according to Basel II standards reached VNĐ53.2 trillion. 
 
In addition, after strictly controlling operating costs, SHB’s cost to income ratio (CIR) edged down to 24.22 per cent, making it one of the best cost control joint stock commercial banks. Its individual bad debt ratio was managed at 1.3 per cent.
 
SeABank (SSB) saw an increase of 89 per cent on-year in profit before tax to VNĐ3.3 trillion, exceeding 135 per cent of the set plan thanks to diversification in sources of revenue and good management of operations. 
 
As of December 31, SeAbank’s total assets increased by nearly VNĐ31.5 trillion compared to the same period of 2020 to VNĐ211.6 trillion. — VNS
 
Read original article here
 
Newer News
03/12 How to regain investors' confidence in corporate bond market: experts
29/11 Credit concerns affecting Vietnamese stocks should ease soon: VinaCapital
23/11 VN-Index struggles on persistent selling force
23/11 Securities companies adjust business results amid market downturn
15/11 Market declines but bright prospect on horizon
14/11 Lo ngại về tính thanh khoản thấp trên thị trường chứng khoán
11/11 Listed companies raise cash reserves
10/11 Investors worried as speculative stocks plummet
07/11 Shares to face downward trend on increased sell-off
07/11 Bank stocks hit by corporate bonds maturity
Older News
04/02 Stock market expected to grow strongly after Tết: experts
24/01 Individual investors dominate stock market in 2022
18/01 The stock market on track to become one of 'Asia tigers': BSC
14/01 The stock market sets new record on billion dollars of capital inflow
11/01 Shares nosedive on late massive selling
07/01 Enterprises rush to list on stock exchanges in early 2022
04/01 VN-Index hits new record high in early 2022
04/01 Stock market to make robust gains as 2022 arrives
30/12 Shares tumble after three-day rising streak
29/12 Shares manage to gain amid market votality
 
Newsletter Signup
Top Stories
PM asks to foster macroeconomic management, firm up confidence of people and businesses
Banks gain big profits from forex trading
Pharmaceutical firms report positive results in Q3
Petrol prices surge in latest adjustment
Investors worried as speculative stocks plummet
Market Update
Last updated at 3:05:04 PM
VN-INDEX 1,050.53 +9.51/+0.91%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.