Banking Sector – Favorable factors already priced in
Posted: Aug 26, 2025
- In 2025, we estimate the system credit growth will reach 17–18% driven by strong economic growth targets, particularly public investment disbursement, while NIM is expected to decline slightly YoY due to the low interest rate environment aimed at supporting the economy.
- Asset quality is expected to remain relatively stable compared to 2024, with provisioning policies staying cautious in 2025 in order to achieve the targeted NPL ratio.
- The banking sector’s P/B is currently above the 5-year average, and we believe that favorable factors have already been reflected in current bank valuations.
- We prefer CTG, VCB, and HDB thanks to their reasonable valuations and sustainable earnings growth.
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