Commercial banks upbeat about achieving high profits in 2025

Commercial banks upbeat about achieving high profits in 2025

Vietnamese commercial banks are optimistic about their 2025 profit targets, with many expecting increases of 20 per cent to 30 per cent due to anticipated robust economic growth and a resurgence in credit activity.

A bank employee counts money for a customer at a private bank branch in Ho Chi Minh City. Many commercial banks are optimistic about achieving their profit targets for 2025. — VNS Photo Bồ Xuân Hiệp

Phạm Văn Đẩu, Chief Financial Officer of HDBank, has announced plans to achieve a profit increase of 25 per cent, with aspirations to join the ranks of banks that report profits exceeding VNĐ20 trillion ($785 million). 

The bank aims to sustain its market-leading efficiency ratios, projecting a return on equity (ROE) of 25 per cent and a return on assets (ROA) of 2 per cent.

Đẩu added that the bank’s development strategy will concentrate on small and medium-sized enterprises (SMEs) as well as individual customers in tier-2 urban and rural areas, which present considerable growth potential with manageable risks. 

In addition, the bank intends to leverage opportunities within export firms and the recovering real estate market, while also accelerating its digital transformation initiatives to meet its objectives.

Lưu Thị Thảo, deputy CEO of VPBank, said the bank has established ambitious targets of pre-tax profit growth of 20-25 per cent, potentially reaching VNĐ24-25 trillion ($981.5 million). 

Having achieved pre-tax profits exceeding VNĐ20 trillion in 2024, the bank aims to expand its retail and SME segments by 30-40 per cent in 2025, she added.

Meanwhile, Eximbank’s board of directors has set a profit growth target of 33 per cent, projecting pre-tax profits of VNĐ5.58 trillion ($219.1 million) for 2025. 

This projection follows a strong performance in 2024, during which the bank recorded nearly VNĐ4.2 trillion in profits despite economic challenges.

However, certain banks are proceeding with greater caution due to unpredictable global financial conditions.

Military Bank (MB) anticipates profit growth of 10 per cent to surpass VNĐ20 trillion ($785.2 million), while planning for 22 per cent growth in assets. 

Phạm Như Anh, MB’s CEO, cited global economic uncertainties and geopolitical tensions as factors influencing their projections.

State-controlled banks are also exhibiting prudence in their forecasts. 

Vietcombank is targeting modest profit growth of 5 per cent, while BIDV aims for pre-tax profit growth of 6-10 per cent in 2025.

These varied projections occur against the backdrop of the State Bank of Việt Nam (SBV) setting a high credit growth target of 16 per cent to facilitate an 8 per cent economic expansion goal. 

Experts predict that the banking sector's profits could increase by 10-20 per cent in 2025, driven by economic recovery, including infrastructure, property, and individual consumption advancements. 

Michael Kokalari, chief economist at VinaCapital, anticipates a 17 per cent profit increase for listed banks, while analysts from Vietcombank Securities forecast sector-wide growth of 15 per cent, with private banks likely to outperform their state-owned counterparts.

A recent survey by the Department of Forecasting, Statistics and Monetary and Financial Stabilisation under the SBV reported that over 85 per cent of credit institutions expect positive profit growth in 2025. 

However, 9.6 per cent expressed concerns regarding potential negative growth, and 5.3 per cent anticipated unchanged results, according to the survey. 

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