Financial Markets

Numerous banks expect higher profitsThe Saigon Times Daily Many banks are planning to raise profit targets this year, following strong performance after two quarters - PHOTO: THANH HOA HCMC - Many banks are planning to raise profit targets this year, following strong performance after two quarters, local newspaper Dau tu Chung khoan reported. With a profit amounting to trillions of dong in the first quarter, Vietcombank may soon raise its 2018 profit target from VND13 trillion to VND14 trillion. The bank already lifted its yearly profit target once at the annual shareholders’ meeting, from VND12 trillion to VND13 trillion. Vietcombank recorded significant profit growth of 59.3% after Q1, at VND4.359 trillion. From this year onward, Vietcombank plans to increase the proportion of retail credit to create a higher net interest margin of over 40% or close to 50%. Besides high profits, Vietcombank generated hundreds of billions of dong by divesting capital from other credit … [Read more...] about Numerous banks expect higher profits

Central bank: Property loans under strict controlBy Minh Tam A customer transacts with a domestic commercial bank. Property loans have been put under tight control since early this year, according to the central bank - PHOTO: UYEN VIEN HCMC – Property loans have been put under tight control since early this year, with outstanding loans in the sector growing an insignificant 2.19%, said the State Bank of Vietnam (SBV). Speaking at a meeting in HCMC on June 13, Nguyen Quoc Hung, director of the SBV’s Credit Department, said bank loans ran strongly into primary industries, industrial construction and priority sectors in January-May. Meanwhile, credit for property development, and build-operate-transfer and build-transfer infrastructure projects declined, resulting in modest growth of 2.19% and 2.15% respectively. Loans for stock investors even dropped 3.92% in the period. The figures showed the SBV’s management and inspection measures paid off, Hung said. … [Read more...] about Central bank: Property loans under strict control

Cybersecurity, data management crucial for fintech developmentBy Thuy Dung HANOI - The State Bank of Vietnam (SBV) encourages cooperation between commercial banks and financial technology (fintech) companies but urges the enhancement of cybersecurity and data management to safeguard consumers’ interests and stabilize the banking system, officials said. At a seminar titled, “The Fourth Industrial Revolution and Innovations in the Finance-Banking Sector,” held by National Economics University on June 12, Le Anh Dung, director of the Payment Department under SBV, noted that the central bank will manage fintech firms based on risk assessment instead of their compliance with general principles. According to experts at the seminar, fintech companies have significantly affected the banking system, having transformed banks’ business and administration models into digital ones by applying the achievements of the Fourth Industrial Revolution. In addition, fintech firms … [Read more...] about Cybersecurity, data management crucial for fintech development

Experts concerned over foreign-currency credit surgeThe Saigon Times Daily Corporate borrowers have grown dependant on foreign-currency credits - PHOTO: TL HCMC – Economists have warned of forex risks as corporate borrowers have grown dependant on foreign-currency credits, resulting in a strong rise in foreign-currency outstanding loans since early this year, according to Lao Dong newspaper. Credit up, deposit down The financial reports of local banks show that deposits in foreign currencies, mostly in U.S. dollar, declined sharply in the first quarter, while lending in these currencies shot up. At the Bank for Investment and Development of Vietnam (BIDV), deposits in U.S. dollar fell 6.05%, while credit leapt 4.01% against early this year to more than VND96.7 trillion. Meanwhile, the Asia Commercial Bank saw its dollar deposits down 8.99%, while lending jumped by 8.19% to VND9.5 trillion. Some other banks reported the same situation, including Military Bank … [Read more...] about Experts concerned over foreign-currency credit surge

ETF review feared to knock down market turnoverPhuong Thao Market turnover is expected to decline this week as a number of highly liquid stocks are in the list for sale of Vietnam-focused exchange traded funds (ETF). MV Index Solutions (MVIS) last week announced that it deleted steel maker HSG and property firm HAG from the MVIS Vietnam Index, the underlying index of the Van Eck Vectors Vietnam ETF (VNM ETF), in its second-quarter review. Meanwhile, FTSE is going to remove property enterprise FLC out of the FTSE Vietnam All-Share Index. Selling pressure is predicted to rise in this week’s trading, which may have negative impacts on the stock market. Meanwhile, domestic players may stay on the sidelines during the ETF rebalancing period, with stock indexes estimated to make little moves, said some securities experts. According to Bao Viet Securities Company, many investors begin to pay attention to stocks with promising business results in the second quarter and the first half. … [Read more...] about ETF review feared to knock down market turnover