VCN – After two times of lowering the operating interest rate from the management agency, the deposit interest rate has dropped quite sharply, helping to create the expectation that the lending interest rate will go down, thereby stimulating a credit increase.
|Banks are quite ambitious, with a credit target of 2023. Photo: Internet
With the above expectation, most banks have set a higher credit growth rate in 2023 than the initial limit granted by the State Bank (SBV).
The most notable is VPBank, with an ambitious credit target of VND 636 trillion, an increase of 33% over the same period in 2022, higher than the 28% growth of the previous year. According to experts of VNDirect Securities Company, this goal of VPBank is quite ambitious given the weak demand and high proportion of credit to the bank’s real estate and corporate bonds.
Similarly, the credit growth target of 25% of VIB and 24% of HDBank is also considered quite ambitious in the context of difficulties in the macro market and the real estate industry. However, HDBank and VNDirect believed that the bank still had plenty of room to achieve a higher credit level than other commercial banks of the same size this year thanks to its participation in receiving weak credit institutions and capital adequacy ratio (CAR)
In addition, some banks set credit growth below 20%, such as TPBank with a target of 18%, both MB and Techcombank at 15%, Sacombank and Eximbank at 12%, and ACB at 9.7%…
According to the banking report of VNDirect, the three listed state-owned banks (BIDV, VietinBank, Vietcombank) set a credit growth target of 10-13% for 2023, in line with the credit growth target of 14% of the State Bank.
Meanwhile, at the General Meeting of Shareholders recently held, the Board of Directors of SHB proposed two business scenarios for 2023 based on two credit growth options.
Specifically, if this year’s credit growth limit is granted at 10%, SHB’s pre-tax profit for the year is expected to be VND 10,285 billion, up 6.15% compared to the previous year. On the other hand, if the bank is granted a higher credit limit (14%), the bank’s profit this year can be 10,626 billion dong, up 9.67%.
A representative of SHB said that by the end of the first quarter of 2023, SHB’s credit scale had reached about VND 423 trillion, an increase of about 6% compared to the end of 2022, while the SBV granted SHB a credit growth limit of 7.9% at the beginning of the year.
According to data from the State Bank of Vietnam, by the end of March 2023, the credit of the whole economy increased by 2.06% compared to the end of 2022, an increase of 11.17% compared to the same period in 2022. Many ideas said this growth level was low, stemming from the difficult situation causing businesses to reduce the loan demand. However, with the expectation that the economy would prosper and credit demand was often “more active” in the second half of the year, banks had set the above positive credit growth targets.
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The results of the survey on business trends of credit institutions in the second quarter of 2023 by the State Bank of Vietnam showed that banks expected the average deposit and lending interest rates of the whole system to decrease by 0.08-0.1% in the second quarter and 0.19-0.34% in the whole of 2023. Therefore, banks expected credit growth of 4% in the second quarter of 2023 and by 13.1% in 2023.
In 2023, the State Bank set a credit growth target of 14-15%, higher than in 2022 and flexibly adjusting according to market developments.
By Huong Diu/ Binh Minh