23022021_BSC Banking Sector Outlook_ENG

Experiencing a volatile 2020 year, the whole industry has made some changes and prepared for the next major fluctuations. Asset quality is well controlled and is expected to remain at the current level in 2021. Many banks focus on reducing costs to increase operational efficiency. 

 

In addition, many catalysts from stocks (1) going to the exchange and changing the exchange, (2) selling a part of subsidiaries and signing bancassurance contracts are factors that help the banking industry attract the attention of domestic and international investors. 

 

Therefore, BSC recommends POSITIVE for the banking industry in 2021 with the view that (1) high profit growth thanks to the recovery of the economy, (2) good control of asset quality after the epidemic. We recommend BUY for shares of VCB, CTG, VPB, and TCB in 2021.