Banking Sector: Resilient Amid Volatility
Posted: Jun 24, 2026
-
Industry’s credit growth in 2026 is projected at around 15%, while NIM is expected to continue its narrowing trend due to higher deposit rates and pressure to maintain stable lending rates.
-
Asset quality by the end of 2026 is forecast to remain largely unchanged from 2025, supported by the easing impact of Decree 86/2024 and active bad debt resolution over the past two years, resulting in credit provisioning expenses increasing by only 9.3% YoY.
-
We maintain our view that sector valuations remain attractive, with P/B trading 5% below the 3-year average and 12% below the 5-year average, despite sector ROE remaining around 17% and earnings growth of approximately 18% YoY. We favor CTG, ACB, and VPB.
Share:
Relevant reports
Don't have an MBS account?
Open an accountStart trading and stay informed with timely updates and valuable reports from MBS.
If you have an MBS account, please register to receive reports from MBS.
Get the latest market updates and corporate insights from MBS.