Sacombank Securities Company, Ltd SBS November 2008
Research
Vietnam Banking Profitability and Prospect
EXECUTIVE SUMMARY
Vietnams banking industry has deep seen promising growing in terms of the number of banks, bill of loans and deposits and the diversity of products and services. Credit and deposits both grew rapidly, 35% per year on fairish, from 2002 to 2007. Commercial banking products and services also grew substantially in design with the overall suppuration of the economy. The Vietnamese banking industry has witnessed material utility in performance during 2007. The ratio of non-performing loans (NPLs) as a share of all loans was reduced to approximately 1.5% from 3% in 2006. The average return on assets (ROAA) and average return on righteousness (ROAE) for the sector was approximately 1.9%, and 17%, respectively. Average capital sufficiency ratios (CARs) of all banks were over the required rate of 8%. Vietnams banking industry, though facing current challenges and weaknesses, entrust benefit from its make strengths and opportunities. Near and long-term growth in the sector lead significantly be driven by the potential growth of the retail banking and the SME market, the consumer lending market and the mortgage market.
The banking industry will also likely see the beginning of a integration trend as acquisitions and mergers become a preferred scheme for growth. Effective governance and risk management will sweep sufficient attention onwards since they are critical in delivering stable returns and supporting robust governance and compliance processes.
victimization OF BANKING INDUSTRY
Vietnam banking industry has recently experienced rapid annual growth in terms of both the number and size of institutions. The come number of banks increased from 9 in 1991 to 86 in 2008. In 2007, total assets of the entire banking system exceeded VND 1,500 trillion, or cxxx% of GDP. This growth has been largely driven by...If you want to get a full essay, order it on our website: Orderessay
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