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Update news bank shares
Analysts say bank shares will face difficulties in the first half of the year because of the poor performance of the real estate market, the export growth slowdown, and high interest rates. But changes will occur in the second half of the year.
Analysts say that bank shares are undervalued and are now attractive investment items.
During the “season” of shareholders’ meetings, Vietnamese banks are confident about their plans to increase profits by several trillion dong in 2021. Several banks have set a record growth target of up to 30%-50%.
KienLong Bank share prices have been increasing sharply in recent days despite the downward pressure on the overall market.
Banks have reported satisfactory business results for 2020 and are projecting ambitious plans for 2021.
The capitalization value of some banks has increased by one billion dollars within a short time.
Many commercial banks now pay trillions of dong worth of dividends to shareholders and have completed restructuring after a decade of difficulties. As a result, their share prices are expected to rise.
Following the prosperous year of 2020, commercial banks have devised more ambitious business plans for the new year. Meanwhile, bank share prices have hit a decade high.
During this year’s shareholders’ meeting season, big changes in shareholders’ structure have been made and many bank managers have been replaced.
Bank shares, which saw prices increasing sharply in the last year thanks to banks' good business performance and prospects, have become the "pillar" of the stock market.
A number of commercial banks are shifting to list shares at the HCM City Stock Exchange (HOSE). The presence of high-quality goods is believed to trigger a new price rise in the post-Covid-19 period.
Commercial banks are facing challenges, including an increase in bad debts because of Covid-19 and pressure that has forced them to increase charter capital. But bank shares remain attractive to investors.
Analysts say banking will be one of a few sectors to benefit from Covid-19 as the central bank may loosen the monetary policy to support the economy in crisis.
Despite good business results, 11 out of 17 listed commercial banks saw share prices decrease in the first half of the year.
BIDV, one of Vietnam’s largest banks, is issuing 603 million shares to the foreign strategic investor KEB Hana Bank from South Korea. If the deal succeeds, KEB Hana Bank would hold 17.6 percent of shares in BIDV.
VietNamNet Bridge - The credit growth rate this year is lower than 2017, but banks’ profit is predicted to be 20-25 percent higher.
VietNamNet Bridge - Commercial banks will find it hard to maintain a high profit growth rate in 2019 as credit and retail banking services will still be the major driving force for bank growth.
VietNamNet Bridge - Investors now are feeling the heat from bank shares as prices escalate every day.
At least five banks are running against the clock to list shares on the bourse this year. Other banks are silent or have delayed listing plans for an indefinite time.
The value of foreigners’ investments has become uncertain amid unfavorable conditions of the market. Since April 15, after reaching the peak of 1,200 points, the VN Index has been sliding, reaching a low of 884.75 points on July 12.