A majority of credit institutions (CIs) are optimistic about their business performance in Q3 2022, the State Bank of Việt Nam (SBV)’s latest survey on business trends of credit institutions showed.

 

Under the survey released last week, 72.5-80.7 per cent of CIs expected their business performance results in Q3 2022 to improve against the previous quarter.

 

In Q3 2022, 54.6 per cent of CIs expected their business activities to increase slightly compared to Q2 2022, while 38.9 per cent of CIs expected to see no change and 6.5 per cent of CIs were worried about a slight decline in business results.

 

In 2022, 87.7 per cent of CIs hope their pre-tax profit growth to be positive compared to 2021, while 3.8 per cent of CIs expect unchanged profit. However, about 8.5 per cent of CIs are still concerned about negative profit growth in 2022, higher than the 5.8 per cent recorded in the survey in March 2022.

 

According to CIs, rising demand of the economy for banking products and services, along with rebounding business and financial conditions of customers are the most important factors to help them improve business performance in Q2 2022.

 

Meanwhile, the main factor hindering their growth in the period was fiercer competition in the market.

 

After maintaining good liquidity in Q2 2022, CIs expect the liquidity of the banking system to be continually better in Q3 2022 and the whole year, compared to 2021.

 

CIs expected the banking industry to gain an average deposit growth of 4.9 per cent in Q3 and 11.5 per cent for the whole year. They estimated the credit of the banking system to rise by 4.1 per cent in Q3 and reach 15 per cent in 2022.

 

According to the survey results, the bad debt ratio of the banking system was basically unchanged, or only slightly decreasing in Q2 2022 and Q3 2022 compared to the previous quarter.

 

CIs said the growth of the workforce and employment situation of the banking and finance industry slowed compared to the previous quarter and was expected to have more positive developments in the whole of 2022 compared to 2021. — VNS