Vietnam Bank Profit Growth to Slow Down in 2010: SSI

Vietnamese banks listed on the stock market will have to lower their earning targets this year because of effects of flexible and cautious monetary policy by the central bank, and the government’s regulations to tighten gold and forex trading, Saigon Securities Inc. (SSI) said in HCM City recently.

 

Banking shares, however, will remain worth investing as basic financial indicators of the industry are attractive, SSI said.

 

Vietcombank had the highest profit growth of 75.6% at VND4.455 trillion in 2009, while Sacombank and Eximbank made net profit of VND1.675 trillion and VND1.144 trillion, up 75.4% and 61% on year, respectively.

 

The three banks expect modest growth in net profit in 2010, including Vietcombank with 5.2%, Sacombank 16.5% and Eximbank 15%.

 

Vietinbank and ACB project higher rates at 14.3% and 10.8%, respectively, the Thoi bao Kinh te Sai Gon reported, citing SSI figures.

 

The market capitalization of six banks listed on Vietnam’s two stock exchanges now accounts for between 23% and 25% of the market’s total. The rate will be much higher in 2010 and the years to come when many banks such as MB, LienVietBank, PG Bank will list their shares.