Vietnam’s credit institutions expect better results in second quarter

Thursday, 2018-04-05 10:16:12
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More than 72% of credit institutions expect their pre-tax profits in 2018 to grow.
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NDO - 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.