Topic: banking stocks

VnDirect has recommended that the short-term outlook for banking stocks calls for caution, due to concerns over rising capital costs and limited credit growth. However, in the longer term, some banks will enjoy strong profit growth over the 2022-2023 period, supported by solid asset quality, improving fee income, and reduced credit expense ratios.

Banking stocks, which account for the largest proportion of Vietnam Holding’s portfolio, have performed well and the fund expects this to continue into 2023 given attractive valuations and steady growth. Banking stocks account for 35 per cent of its investment, followed by industry and services with 18 per cent, retail 17 per cent, real estate 16 per cent, and technology 11 per cent.

Along with the recovery of the stock market overall, banking stocks have also been regaining ground in recent times. Figures from FiinTrade show that second-quarter after-tax profits at 23 of the 27 trading banks rose 33.4 per cent year-on-year on average.