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Bright prospects for bank stocks Bank tickers are anticipated to remain in the spotlight in 2021, with investors racing to capitalise on bright profit prospects.
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IDV Securities Company (BSC) recently issued a report on the prospects of the banking sector, saying commercial lenders would witness a sharp rise in profit thanks to the economic rebound and good control of post-pandemic asset quality. The BSC report assumed that the whole sector’s pre-tax profit could soar 28 percent, chiefly attributable to 14 percent credit growth in 2021, plus the interest rate going sideways and reduced pressure on making loan loss provisioning. Notably, despite their continual shortselling in Vietnam’s stock exchange since early 2021, foreign investors and investment funds are holding banking tickers, putting their trust in their upbeat growth potential. Finnish equity fund PYN Elite even forecast 50-60 percent growth for banking tickers in the first quarter this year, compared to a year ago. BSC’s report, meanwhile, says that a slew of banks are scaling up efforts to replenish their low-cost capital source (current account savings account CASA), striving to expand customer
base through reducing transaction fees or upgrading operation system and infrastructure. The CASA ratio in the banking sector reached 18 percent
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B I D V review
in 2020 and is expected to further increase in the forthcoming time. With a flexible business model and
