Give us your feedback

Banks: Sector headwinds likely priced in – Update

Sector note 21/04/2020    315


  • A drop in banks’ net profit growth is expected in FY20F as Covid-19 leads to low credit demand, NIM compression and a likely increase in bad debts.
  • We expect banks under our coverage to show earnings recovery in FY21F in the base case scenario that the pandemic ends in mid-FY20F.
  • Our top picks are VCB, ACB and MBB, thanks to their prudent asset management, lower risk appetite and better recovery outlook.

Please follow this link for the full report Protection Status