Asset quality, profitability of Vietnam banks improved: Moody’sThe asset quality and profitability of 14 Vietnamese banks rated by Moody’s improved moderately year-over-year, driven by robust macroeconomic conditions and growth in core income, Moody’s Investors Service said on Tuesday. "In 2018, we expect the banks will continue to improve their asset quality and profitability, while capitalisation will weaken," said Eugene Tarzimanov, a vice president and senior credit officer at Moody’s. On asset quality in particular, Moody’s said that the improvement in 2017 versus 2016 was helped by problem asset recoveries and write-offs, as well as credit growth. Moody’s said the banks’ asset quality will improve further in 2018, due to recoveries, but rapid credit growth could mask asset risks. With profitability, Moody’s points out that the banks’ asset weighted-average return on assets rose to 0.9 per cent in 2017 from 0.7 per cent in 2016.

Source: VietNamNet News March 06, 2018 12:11 UTC