Mr. Badrinath Ramanathan, Partner at McKinsey & Company, discusses matters from McKinsey’s eighth annual review of banks with VET. ■ How do you view the development of Vietnam’s banking sector at this time? Overall, asset growth was relatively high at ~17 per cent over the 2012-2017 period while the profitability of the banking system has improved, with return on equity (ROE) increasing from 13 per cent to 15 per cent over the same period. However, this has been driven by one-off effects and declining equity capital in the system. If you look under the hood, there are challenges to core profitability as revenue margins have declined, risk costs have deteriorated slightly, and costs have increased. In order to continue to perform well going forward, banks need to continue to innovate and leverage digital technology / advanced analytics to enhance their business models. ■ In McKinsey’s eighth annual review of the global banking industry, Vietnam’s ROE was reported to have moved upwards due to an increase in other items and leverage. How do you think this will affect the country’s banking sector? The ROE increase was due to different effects. The change in other items involved one-off non-performing loan (NPL) collection… Read full this story
- Punit Sood to head India operations of Royal Bank of Scotland
- Vietnam at 60: A legacy to be bequeathed
- Gartner predicts Aussie finance IT spend to push AU$18b next year
- Managing asset allocation with goals of investors: Sougata Basu, CashRich
- One of These People Could Beat Trump, Right?
- How to Fight Slowdown: Demand Revival Is Key
- Stakeholders in agriculture sector commend Akwa Ibom’s transformation
- 'My Parkdale is gone': how gentrification reached the one place that seemed immune
- Steep Market Competition Possibly Pushed Kaspersky to Offer Free Software
- Why would someone steal the world’s rarest water lily?
Banks have strategic choices have 293 words, post on english.vietnamnet.vn at December 21, 2018. This is cached page on VietMaz. If you want remove this page, please contact us.