Vietnam’s banks optimistic about 2018 amidst huge profits in 2017

11:04 | 17/01/2018 Finance - Banking

Nearly 92.6% of credit institutions expected higher pre-tax profits in 2018 thanks to their good performance in 2017, released the latest survey conducted by the State Bank of Vietnam's Department of Monetary Forecasting and Statistics.

vietnams banks optimistic about 2018 amidst huge profits in 2017
Vietnam's credit institutions posted a 40% year-on-year increase in pre-tax profits in 2017 - Illustrative image

The survey on business trends carried out in December 2017 showed that the status and business environment of most credit institutions continued to see positive changes in 2017.

About 71.8% of credit institutions said that business prospects in the first quarter of 2018 will be improved compared to the fourth quarter of 2017 and 88.6% of credit institutions hoped for a further improved business prospects for the entire 2018 compared to 2017, the survey stated.

Most credit institutions revealed that their internal factors remained stable and positive in the fourth quarter of 2017, which are expected to continue improving throughout 2018. In particular, customer policies and services saw the most positive improvements in 2017.

Credit institutions also hoped that the 'demand of the economy for banking products and services' will be the most improved factor, which will be followed by the advances of 'business and finance conditions of customers'.

According to the National Financial Supervisory Commission, Vietnam's credit institutions posted a 40% year-on-year increase in pre-tax profits and 44.5% year-on-year increase in after-tax profits in 2017.

The outstanding performance of credit institutions was mainly attributed to effective credit activities, income from equity contributions, and revenue from service activities, among others.

Theo NDO