Banking stocks tipped bet88 lead growth in 2022

2022 is full of positive factors for banking stocks on Vietnam’s stock market, according bet88 Mr. Le Anh Tuan, Director of Investment Planning at Dragon Capital Vietnam.

Credit is forecast bet88 improve in 2022 while bad debts will fall sharply, with the average profit in the whole industry predicted bet88 rise 30 per cent compared bet88 2021, he explained. Moreover, certain banks are strategically selling capital, as profits rise from sales in exclusive insurance deals and more space is made available for foreign investors.

Bank leaders have announced business plans for 2022 with a high degree of optimism. Private banks such as MSB, OCB, ACB, and VPBank are looking at growth of 20-30 per cent based on rising credit and non-interest income. State-owned banks, meanwhile, have set profit targets more than 15 per cent higher than in 2021.

The research team at BSC Securities assessed that the banking industry has positive prospects in 2022.

Credit demand will continue bet88 grow at a high level, of about 14 per cent, supported by Vietnam’s continued economic recovery post-pandemic and an estimated support package of VND350 trillion (.33 billion) being implemented over the next 2-3 years. Credit growth was 13.53 per cent in 2021 thanks bet88 sound disease control and economic recovery.

BSC also believes that NIM will increase by 0.35 percentage points in 2022 compared bet88 2021 due bet88 three factors: high credit growth thanks bet88 economic growth, lending rates recovering after the support period, and an increased CASA structure that helps banks cut capital costs.
In general, BSC expects banking industry growth bet88 come in at 22.2 per cent, thanks bet88 the post-pandemic recovery and a low base in 2021.

With such prospects, analysts believe that banking stocks will lead the stock market this year, though price growth may be lower than in 2021. Valuations are still attractive, with an average P/E of 16x and a P/B of 2.1x.