Sector Insight

- Economic indicators all showed a positive recovery of the economy, especially the industrial production sector.

- Credit growth continued to be led by corporate customers in the first half of 2024. We expect NPL continue to be under pressure, especially from individual customers and SMEs. Meanwhile, NIM could not expand as banks promote preferential interest rate loan packages to boost lending growth.

- After 2 years of accelerating lending to corporate customers, we expect the recovery of the retail group and the ability to collect and handle debts to be the highlights of the banking industry in the period of 2024-2025. We maintain our forecast for banking industry profit before tax growth at 15% for 2024 and 24% for 2025.

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