After successfully containing the coronavirus pandemic, Vietnam’s economy is well on its way to recovery, while the country’s major partners in the global market are still struggling with the virus, affecting the banking sector’s performance.
Many credit institutions saw their performance weaken over the past two months, according to a survey on business plans of credit institutions for the third quarter of 2020.
The survey, published by the Monetary Statistics and Forecasting Department under the State Bank of Vietnam, also indicated that a mere 32 percent of participating credit institutions saw their performance improve in the second quarter compared with the previous quarter.
However, a survey conducted in late 2019 and another one in late March revealed that 65.7 percent and 47 percent of credit institutions, respectively, set high profit targets for the second quarter of 2020.
The demand for bank services in the second quarter inched up 34 percent against the 31 percent rise seen in the first quarter, but was much lower than expected at 52%, according to the survey.
Many credit institutions attributed their poor performance in the second quarter to low demand for bank products and services and the weak financial capacity of customers.
In the third quarter of 2020, demand from clients for products and services supplied by credit institutions is expected to rise.
Up to 54.3 percent of credit institutions that participated in the survey predicted their performance in the third quarter would improve compared with that of the second quarter, while some 15.3 percent of other institutions predicted they could see negative business results.
https://english.thesaigontimes.vn/77603/banks-see-profits-dip-versus-targets.html
