Banks setting upbeat profit targets

Many banks report upbeat profit figures in the first quarter of 2022

The banking sector’s business operation is forecast to proceed positively this year, leveraging the economic rebound which will fuel credit growth.

Accordingly, credit volume expanded by 4.05 per cent in the first quarter of this year. This, along with diversified income sources outside interest income, has contributed to bettering banks’ profit picture.

Leading state-owned lender Vietcombank is set to post at least a 12 per cent hike in 2022’s pretax profit to surpass $1.33 billion, coupled with an 8 per cent increase in its total asset value, and 15 per cent growth in total outstanding loan balance.

Its deposit volume is expected to inch up 9 per cent and non-performing loans are kept below 1.5 per cent.

VietinBank, another major lender, is set to post 5-10 per cent hike in its total asset value, and 11 per cent hike in its pretax profit to reach $839 million.

Meanwhile, VPBank has set forth a business plan for 2022, with a 27 per cent jump in total asset value to reach $3.03 billion, its deposit volume soaring 28 per cent and its profit more than doubling the 2021 figure to reach $1.28 billion.

Meanwhile, VIB aims to post 31 per cent jump in its profit to reach $456 million, and 30 per cent hike in other business metrics, including its total asset value, its total outstanding balance, and total deposit volume to reach $17.5 billion, $11.54 billion, and $12.2 billion, respectively.

Similarly, ACB envisages posting a rise of 25 per cent in its pretax profit to reach $652 million and keep its bad debt below 2 per cent.

Techcombank plans 16.2 per cent growth on-year in its pretax profit to reach $1.17 billion, while MB aims to post 23 per cent hike in its profit to touch $883 million.

According to SSI Research, many banks have reported upbeat profit figures in the first quarter this year, with 2-3-digit growth. Of the 13 banks with estimated Q1 profit figures by SSI Research, only VietinBank is forecast to catch a negative growth, the remaining envision growth ranging from 14 per cent to over 170 per cent.