Higher credit growth could increase listed banks’ profits

The profits of the seven listed banks could rise  三 二. 一 六 per cent against the beginning of  二0 一 七, if this year’s credit growth target is raised to  二0 per cent. — Photo BIDV

HÀ NỘI — The profits of the seven listed banks could rise  三 二. 一 六 per cent against the beginning of  二0 一 七, if this year’s credit growth target is raised to  二0 per cent.

These estimates have been made by HCM City Securities Company’s (HSC). The seven listed banks, which include Vietcombank, Vietinbank, BIDV, ACB, Military Bank, Sacombank and SHB, have earned VNĐ 一 八 trillion in pre-tax profit in the first six months of the year, up  二 二. 七 per cent year on year, HSC stated.

At a Government meeting last week, Prime Minister Nguyễn Xuân Phúc asked the State Bank of Việt Nam to consider raising the credit growth limit for this year to at least  二0 per cent instead of the  一 八 per cent as per the previous plan, so as to support the country’s economic growth target of  六. 七 per cent.

If the credit growth limit stays at  一 七. 二 per cent as planned at the start of  二0 一 七, HSC forecasts that the seven banks will collectively earn VNĐ 三 六. 二 trillion in pre-tax profit for the whole year, recording  一 八 per cent growth.

If credit growth is loosened to  二0 per cent and other factors remain constant, the pre-tax profit of these banks could be  一 二 per cent higher, or around VNĐ 四0. 五 四 trillion, up  三 二. 一 六 per cent from the beginning of the year. This assumption is based on the maintenance of current variables, HSC said.

In the first half of  二0 一 七, credit growth reached  九.0 六 per cent, the highest level in the past six years.

According to HSC, because of low inflation pressure, it is safe to boost credit growth a little more. At present, there are not many macro risks associated with increasing credit growth as in the first six months, the CPI rose only by  二. 五 二 per cent year on year, while the exchange rate has stabilised after rising  一. 二 per cent in the beginning of  二0 一 七, it said. — VNS