FiinPro Digest #5: Vietnamese Corporate Earnings Quality amidst the Covid-19 Pandemic

01 September 2020 - 09:26 AM

As part of “FiinPro Digest” series, “FiinPro Digest #5: Vietnamese Corporate Earnings Quality amidst the Covid-19 Pandemic” aims to provide an updated and insightful analysis on earnings quality of listed companies in the first half of 2020 as well as their growth outlook for the whole year.

While the previous issue “FiinPro Digest #4” focused on earnings updates based on a proportion of filing progress, “FiinPro Digest #5” focuses on analyzing corporate financial strength and their growth prospects with specific data updated as of August 18, 2020 when almost all listed companies have already disclosed their Q2-2020 earnings reports.

  • Non-financial public companies: In Q2-2020, net revenue of non-bank listed companies plunged 18.8% YoY, however, profit after tax decline slowed down to 36% YoY thanks to an upsurge in non-operating income

  • Banks: Profit after tax in Q2-2020 still grew of 22.5% YoY and 16.2% QoQ thanks to cost reduction, reflecting in significantly improved cost-to-income ratio (CIR).

  • Non-bank listed companies forecast a fall in both revenue and profit after tax in 2020 for the first time

  • Profit after tax of listed banks is expected to rise 4.9% in 2020, supported by regulatory changes in debt restructuring and credit risk provisions and non-credit income such as securities investments

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We hope that this Report will support not only analysts at investment institutions and individual investors but also banks and relevant agencies in working out measures or policies to lessen the Covid-19 impact on different sectors.

We are looking forward to receiving your comments and feedback on this report. If you would like more information, please contact our service contact or email info@fiingroup.vn