Many Banks Plan To Recruit More Employees In Q2

The State Bank of Vietnam (SBV) has just announced the latest survey results on business trend carried out by the Forecasting and Statistics Department in March 2018.

Specifically, the business situation of credit organisations continued to improve slightly in Q1/2018 compared to the previous quarter. 75 percent of credit organisations expected that the business situation would improve in Q2/2018 and 84 percent of credit organisations expected that the business situation would improve during the entire year 2018, in which 22-28 percent of credit organisations expected “much improvement”.

72.7 percent of credit organisations expected that their pre-tax profits at the end of 2018 would attain positive growth compared to 2017 with the average of 18.2%, lower than the expected average recorded in the previous survey (19.3%).

Despite good and expanding business operations, 44 percent of credit organisations said though they had recruited more labourers in Q1/2018, 23.2 percent of which said they were lacking necessary labourers for current work demand and 61 percent of credit organisations expected to recruit more labourers in Q2/2018.

In terms of business environment, according to the assessment of credit organisations, subjective and objective factors in Q/1/2018 improved better than Q4/2017. Among subjective factors, the most improved factor was “Policy and customer care service of credit organisations” (with balance ratio at 44%).

Among objective factors, “The demand of the economy for products and services of credit organisations continued to be assessed to improve the most, and credit organisations also assessed that “management mechanism and regulation on banking operation safety of the State Bank” improved more strongly than other objective factors in Q1/2018.

The healthiness of customers at the current moment is assessed by credit organisation to be more positive than the previous quarter with 76 percent of credit organisations assessing overall risks of customer groups at “normal” level, 18 percent of credit organisations assessing risks at low level (compared to 76 percent and 15 percent respectively in the previous quarter).

Customers’ demand for using banking service was expected by most credit organisations to continue increasing. 64-69 percent of credit organisations expect that the total demand of customers for products and services would continue increasing in Q2 and the entire year 2018, of which the demand for capital borrowing was expected to increase the most clearly with 68-69.4 percent credit organisations.

Liquidity of the banking system continues to improve better than the previous quarter. The liquidity is currently in “good” condition for both dong and foreign currency, and is expected to continue maintaining good status in the upcoming quarters and the whole year 2018.

On the basis of assessing the business environment as aforementioned, credit organisations expected that the capital mobilisation of the entire system grows at an average of 4.71 percent in Q2/2018 and 16.65 percent in the entire year 2018.

In terms of capital mobilisation terms, unlike the results of the previous surveys, deposits from six months to one year were expected the most (accounting for 83-86%) instead of less than six-month terms (reckoning for 77-82%) in Q2/2018 and the entire year 2018.

The oustanding loans of the banking system were expected to grow 4.85 percent in Q2/2018 and 16.3 percent in 2018, approximately reaching the expected level of 16.65 percent in average capital mobilisation growth rate of the entire system.

 

Category: Finance, Vietnam

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