Sluggish growth and risks abound in banking arena

A handful of banks have released their latest financial figures. a banking consultant and trainer at Integrated Financial Solutions, talked to Hong Dung about the low profits for some, and potential risks in the industry.

Le Hoai An,

VIR’s

       have released their financial state ments. What is the profitability status of commercial banks in the first quarter?

         lower than what happened in the first quarter of 2023 when credit growth   

                  from foreign exchange fluctuation,        

                                    

So, what factors are contributing to the profit differentiation between commercial banks?

   to the profit differentiation among           efficiency and strategies of each insti         into the first quarter of 2024.

              robust profit growth alongside an               over, corporates in financial difficul                 as well as maintaining cash flow for 

           es in pushing profit growth. In the        

In the first quarter, MBB’s NIM                     profit compared to the same period              demand, causing a decline in profit 

 ing assets poses a significant chal  contributed to the profit decline,            

Many banks have announced their      is your assessment of the prospects for banks in the coming period?

      commercial banks set their profit              their profit plans for the rest of 2024. However, most banks have set quite modest profit growth targets com        reflects a cautious growth strategy of             

Specifically, banks such as Viet       2024, only equivalent to the average              get of only 5 per cent for profit before           their profit target shows the caution 

    profit growth of 20 and 34 per cent             context of their pre-tax profit falling  

     the profit growth of banks this year,             economic difficulties that could be 

The differentiation in the profit          ty, risks in the quality of earnings, and            with fluctuations in the economic      improve asset quality and manage                           asset quality across the system.n