The banking sector is optimistic about its growth prospect in 2018 as all of surveyed banks expects the growth rate to be more than 10 per cent.

This was revealed by Viet Nam Report on Wednesday in its announcement of the top 10 prestigious commercial banks in Viet Nam in 2018. Many banks in its survey last month planned positive profits in their shareholders’ meeting. Some even expected a growth rate of 40-65 per cent.

In 2017 and the first half of 2018, the banking sector witnessed strong and stable progress, focusing on restructuring.

The management policies of State Bank of Viet Nam (SBV) achieved some success. The central bank absorbed quite a lot of foreign currency, thus increasing foreign reserves, controlling inflation, stabilising foreign exchange rate and ensuring payment balance surplus.

In 2017-18 period, banks made headlines for their internal restructuring as well as for their market image, human resources, business strategy and merger and acquisition.

The rate of bad debts reduced sharply in 2017. According to SBV, credit organisations resolved VND753.5 trillion worth of bad debts from 2012 to March 2018. Banks have been active in resolving bad debts, especially those sold to the Viet Nam Asset Management Company (VAMC). The top 10 banks, such as Vietcombank, ACB, Techcombank and MB Bank, completed resolving bad debts sold to VAMC in 2017, while Vietinbank completed the process in the first quarter of this year.

During this period, many banks achieved a high and stable growth rate. Experts attributed this to the net interest margin maintained at an ideal level by the banks.

However, banks are expected to face some challenges in the time ahead. According to specialists of Viet Nam Report, risks of credit, liquidity and interest rate will still be key issues.

Currently, the high credit growth has been transferred from real estate to individuals, which is considered less risky. High consumption credit means the increase of fake and fraudulent information to apply for consumption loans. In the context of a surge in trust loans, the competition will become fiercer, making banks vulnerable to risks.

The list of top 10 commercial banks has been announced annually since 2012 based on an evaluation of reputation, financial capacity and growth potential. — VNS