Before the State Bank of Vietnam decided to increase the operating interest rate from October 25, Yuanta said the increase would negatively affect the valuation of stocks. However, bank stock valuations remain very attractive.
Banks have been permitted to increase their charter capital and this has had a positive impact on the banking industry in general and banking stocks in particular.
SSI Research maintains a positive view of Vietnam’s banking industry in 2022. In the first quarter, the industry posted stable pre-tax profit growth thanks to three factors: strong credit growth, stable net interest margins (NIM), and bad debt and restructured loans being well-controlled. It is expected that pre-tax profit in 2022 will increase 24-25 per cent.
Bank stocks are becoming more attractive as their prices are down 15 per cent from their peak. According to VnDirect, the stock market is an attractive investment channel and will continue to be so into 2022.
