A customer at a VietinBank office in Hanoi (Photo cafef.vn)The SBV’s survey on business trends of credit institutions in the first quarterof 2022 released this week showed 95 percent of credit institutions expecttheir pre-tax profit to grow this year, while 3 percent expect it to beunchanged and 2 percent are worried about decreasing profits.
Credit institutions believe their profits recovered and improvedsignificantly in the fourth quarter of 2021, thus raising expectations foran improvement over the entire year.
As for Q1 2022 alone, 49.5 percent of credit institutions forecast theirbusiness results to grow compared to the fourth quarter of 2021.
According to credit institutions, credit policies, interest rates and exchangerates of the SBV are still the most important factors to help them improvebusiness performance. Meanwhile, the main factors hindering their growthinclude low demand, business conditions and financial conditions of clients,which are expected to improve in 2022.
The liquidity of the whole banking system is expected to remain abundant, withmore improvements over the first quarter of 2022, compared to the fourthquarter of 2021.
The survey results show most credit institutions estimated the bad debt of theentire banking system would rise slightly in the fourth quarter of 2021, butthey expect it to reduce slightly in the first quarter of 2022.
Credit growth of the banking system is forecast to increase by 5.3 percent inthe first quarter of 2022 and 14.1 percent over the whole of 2022, slightlyrevised lower than the forecast of 14.3 percent in the previous survey.
Interest rates are also projected to remain stable in the first quarter of 2022and may increase slightly at the end of 2022./.
VNA
