Banks expect upbeat profit picture for 2025

Banks expect upbeat profit picture for 2025

Several banks have set higher profit targets for this year, expecting more positive credit growth amid improved capital absorption capacity and an acceleration of public investment.

The Board of Directors of southern major lender Eximbank has approved its 2025 business plan, which will be presented at the bank’s AGM (AGM) in Hanoi on April 29.

Eximbank is targeting a total asset value of $10.62 billion by the end of 2025, an increase of 10.8 per cent; total deposit volume amounting to $8.24 billion, up 15.5 per cent; outstanding loan balances touching $7.82 billion, growing 16.2 per cent; and consolidated pre-tax profit up 33.2 per cent on-year, reaching $223.2 million.

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Meanwhile, after restructuring DongABank, which has been renamed to Vikki Bank, HDBank revealed it is aiming for higher credit growth this year than last at its investor meeting on February 18, while keeping its non-performing loan (NPL) ratio below 2 per cent.

HDBank expects its pre-tax profit to exceed $800 million, showing a 25 per cent jump on-year, and targets a return on equity ratio of 25 per cent and a ratio for return on assets of 2 per cent.

The bank's leadership believes that credit growth will continue to be strong this year, with key drivers being export businesses and the recovery of the real estate market. Retail credit demand recovered in the final quarter of last year and in January, and is expected to further improve in 2025.

Meanwhile, state lender BIDV is targeting a 14 per cent hike in total outstanding balances. In addition, it plans to raise capital in line with its funding needs, keep its NPL ratio below 1.4 per cent, and aim for a pre-tax profit increase from 6-10 per cent.

MB is eyeing 22 per cent growth in its total asset value by the end of the year, increasing from $43.2 billion to $52.7 billion; outstanding balances are expected to surge 26 per cent, surpassing $40 million; with deposit volume projected to surge 25 per cent.

The bank’s pre-tax profit target is relatively conservative, growing from 8 to 10 per cent, with its NPL ratio being kept below 1.7 per cent. Profit figures for 2025 are projected to exceed $800 million.

At its investor meeting on February 18, tech-driven VPBank shared that, given the current macroeconomic context, the bank is targeting a profit growth of about 20-25 per cent for 2025. Retail banking and small and medium-sized enterprises remain its two key segments.

VPBank’s leadership revealed that FE Credit, the bank’s consumer finance arm, has been going through a restructuring process for over 1.5 years, yielding positive results.

With expectations of improving demand for consumer credit, VPBank anticipates that FE Credit’s pre-tax profit will return to the $120-160 million mark in 2025 with a credit growth target of 15 per cent.

Hanoi-based Vietcap Securities forecasts that system-wide credit growth would remain around 15 per cent this year, with retail loan growth expected to rise from approximately 12 per cent last year to 15 per cent.

Additionally, banks are focusing on long-term loans, particularly lending to infrastructure projects, to optimise net interest margins, as long-term loans typically offer higher interest rates compared to short-term deposits.

Vietcap Securities believes that banks have competitive advantages in business lending. It forecasts that profits this year will rise for Sacombank (48 per cent), Vietcombank (24 per cent), ACB (24 per cent), TPBank (23 per cent), and Techcombank (21 per cent).

In its banking industry outlook report for 2025, SSI Securities forecasts that improving asset quality will be a common trend for the banking sector. Experts there predict stable credit growth, asset recovery, abundant real estate supply, and an increase in non-interest income are expected to contribute to the improvement of banking operations this year.

SSI maintains a positive view on the banking industry overall and expects pre-tax profits for the sector to grow by 17.4 per cent on-year.

VIR