Monday, November 11, 2024 12:40:28 AM - Markets closed
VN-INDEX 1,252.56 -7.19/-0.57%
HNX-INDEX 226.88 -0.61/-0.27%
UPCOM-INDEX 92.15 -0.17/-0.18%
Banks reduce profit expectations for 2024
vietnamnews - 10/11/2024 8:31:20 AM
 (0 ratings. You must sign in to rate.)
A majority of banks have lowered their profit expectations for 2024.
 
 
A bank teller counts cash at a branch in Hà Nội. In the latest survey on business trends of credit institutions in the fourth quarter of 2024, 79.6 per cent of credit institutions expect their positive pre-tax profit growth compared to 2023, against 86.2 per cent of credit institutions in the previous survey. Photo tinnhanhchungkhoan.vn
 
 A majority of banks have lowered their profit expectations for 2024, according to the results of a newly released survey from the State Bank of Vietnam (SBV).
 
The survey of credit institutions on business trends in the fourth quarter of 2024 was conducted before Typhoon Yagi hit, so the banks' forecasts did not take into account the impacts of the disaster.
 
According to the survey results, the proportion of credit institutions that expect positive pre-tax profit growth in 2024 has decreased compared to a previous SBV survey, 79.6 per cent against 86.2 per cent in the previous survey.
 
In addition, 15.9 per cent of credit institutions are concerned about negative profit growth, higher than the 11 per cent listed in the previous survey.
 
The banks also responded that the liquidity of the banking system in the third quarter this year improved compared to the second quarter.
 
Credit institutions forecast that liquidity in the fourth quarter and all of 2024 will continue to improve compared to 2023.
 
The survey also shows that since the beginning of the fourth quarter, credit institutions have made slight increases to the deposit interest rate and maintained the lending interest rate at a low level.
 
For all of 2024, credit institutions forecast that the deposit interest rate will inch up by 0.1 percentage point and the lending interest rate will decrease slightly by 0.09 percentage points compared to the end of 2023.
 
According to the credit institutions, raised capital in the banking system is expected to increase by an average of 3.2 per cent in the fourth quarter and 7.9 per cent in the whole year, a significant decrease compared to the 10.1 per cent rate recorded in the previous survey.
 
Credit institutions predict that the banking system's credit growth will increase by an average of 4.8 per cent in the fourth quarter and 13.2 per cent in 2024 overall, a decrease of 0.9 percentage points compared to the 14.1 per cent rate in the previous survey.
 
In the third quarter of 2024, banks also said the average bad debt ratio of the whole banking system did not decrease as expected in the previous survey, but instead increased slightly.
 
However, as the increase in the third quarter was narrower than that in the second quarter, credit institutions expect the bad debt ratio to be adjusted down in the fourth quarter this year. — VNS    
 
Read original article here
 
Newer News
08/11 New regulations on mergers, consolidation of credit institutions proposed
08/11 SBV’s USD/VNĐ central exchange rate hits all time high
07/11 State bank to strengthen anti-money laundering efforts with new department
06/11 Amendment to tax regulation on foreign suppliers proposed
06/11 Bad debts expected to slow next time despite rising in nine months
04/11 VN’s gold demand slumped as sharp price rises deterred fresh buying in Q3: report
31/10 Fintech companies become capital providers for small and micro firms
30/10 Gov’t submits to the NA a draft law amending seven laws
30/10 Smart banking emerges as more than just a technological trend
29/10 Interest rates expected to decrease by 0.7 percentage points next year
Older News
10/10 Disbursement rate for public investment remains sluggish: MoF
09/10 State-owned banks struggle to increase capital
08/10 Central bank confident about credit growth this year
07/10 Promoting cashless payments for young
07/10 Transactions of gold on unofficial online market pose high risks
07/10 Banks not allowed to offer promotions to depositors
05/10 An open banking system is essential for a smart city
04/10 Banking and securities in spotlight for late 2024 market watch
30/09 Central bank takes bold actions to stablise gold market
30/09 Tax sector fulfills nearly 85 per cent of State budget collection estimate
 
Newsletter Signup
Top Stories
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Việt Nam, Cambodia look forward to $20 billion trade
Market Update
Last updated at 3:05:02 PM
VN-INDEX 1,252.56 -7.19/-0.57%
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.