Sector Insight

- Industrial production activities and import & export values have all sent positive signals.

- Business results in 2023 surprised with strong credit growth in Q4/2023, NIM showed stability, bad debt ratio decreased after many consecutive quarters of increase. Some banks have the advantage of high reserve buffers to limit the recognition of credit risk costs during the period and combine it with recording profits from bonds thanks to the reduced interest rate level compared to 2022.

- GDP growth in 2024 returns to 6%, credit growth reaches 13-14%. Pre-tax profits of banks listed on HOSE are expected to grow by 17%. The bank's valuation continues to be attractive in the long term thanks to the potential for net interest income growth, fee income, bad debts are starting to show signs of being controlled and many capital raising deals in the near future.

- Potential bank stocks: VCB, ACB, STB, TCB, MBB, VPB