A majority of credit institutions (CIs) are optimistic about their business performance in Q3 2022, the State Bank of Vietnam (SBV)’s latest survey on business trends of credit institutions showed.

Under the survey released last week, 72.5-80.7% of CIs expected their business performance results in Q3 2022 to improve against the previous quarter.

In Q3 2022, 54.6% of CIs expected their business activities to increase slightly compared to Q2 2022, while 38.9% of CIs expected to see no change and 6.5% of CIs were worried about a slight decline in business results.

In 2022, 87.7% of CIs hope their pre-tax profit growth to be positive compared to 2021, while 3.8% of CIs expect unchanged profit. However, about 8.5% of CIs are still concerned about negative profit growth in 2022, higher than the 5.8% recorded in the survey in March 2022.

According to CIs, rising demand of the economy for banking products and services, along with rebounding business and financial conditions of customers are the most important factors to help them improve business performance in Q2 2022.

Meanwhile, the main factor hindering their growth in the period was fiercer competition in the market.

After maintaining good liquidity in Q2 2022, CIs expect the liquidity of the banking system to be continually better in Q3 2022 and the whole year, compared to 2021.

CIs expected the banking industry to gain an average deposit growth of 4.9% in Q3 and 11.5% for the whole year. They estimated the credit of the banking system to rise by 4.1% in Q3 and reach 15% in 2022.

According to the survey results, the bad debt ratio of the banking system was basically unchanged, or only slightly decreasing in Q2 2022 and Q3 2022 compared to the previous quarter.

CIs said the growth of the workforce and employment situation of the banking and finance industry slowed compared to the previous quarter and was expected to have more positive developments in the whole of 2022 compared to 2021./.