Sector Insight

As of September 2022, the credit growth of banking industry was 11.7%, deposits increased by 4.06% compared to the end of 2021, slower than credit growth, even though banks are constantly racing to increase deposit interest rates in the first 9M2022 to attract customer deposits. 

Profit growth in 2023 remains positive thanks to (1) Credit growth reaching 12.4%; (2) Increased lending interest rate helps to preserve NIM value; (3) Real estate credit stabilizes again. The growth rate of customer loans and customer deposits are forecasted to maintain at 12-14%, based on the forecast GDP remains at 6-7% in the next few years.