Vietnam’s credit institutions expect better results in second quarter

The majority of credit institutions in Vietnam anticipate that their business performance will improve in the second quarter of the year, according to a survey conducted by the State Bank of Vietnam.

Three in four institutions said their results would be better in the April-June period, while 84% anticipate improved results throughout 2018, of which around one fifth said the improvements would be substantial.

More than 72% of credit institutions expect their pre-tax profits in 2018 to grow in comparison with the previous year, with an average increase of 18.2%, although the figure is lower than the 19.3% increase as predicted in the previous survey.

Credit institutions said the better results would come as a result of their improved policies and customer services, as well as significant increases in demand for their services and products.

Stronger management and operational safety rules are also a factor that is expected to help credit institutions enhance their business performance, according to the survey.

Concerning the health of their customers, 76% of credit institutions said the overall risk is currently at a normal level, while 18% said the risk is low, compared with the previous quarter’s respective figures of 76% and 15%.

The liquidity of the banking system is also expected to improve and maintain its positive status in the coming quarters while banks’ outstanding credit is anticipated to expand by 4.85% in the April-June period and 16.3% in all of 2018.

Source: Dtinews