TPBank CEO reveals investment strategy in bank stocks

The CEO also noted that, in order to come to a decision to "put down money", investors should not only look at the price at a time, should not buy cheap if it is cheap, but need to analyze and consider operating efficiency and calculation. soundness and sustainability of that bank.

Banking is a specific business and its stocks also account for a large proportion in the VNIndex. Banking stocks recently experienced a slower increase in volatility compared to other industry groups as well as the market average. However, many signals also show that banking stocks will have more positive movements in the third quarter as well as the second half of the year.

In the program Secret Money, season 2, number 20 "The bank is not cold", Mr. X30 Pham Luu Hung - Chief Economist cum Head of Training and Development Department, SSI Securities JSC and Mr. Nguyen Hung - CEO of the Bank Pioneer - TPBank has provided many in-depth analysis, comments and advice for investors interested in banking stocks.

On a live broadcast, an investor questioned that bank stocks were not suitable for individual and retail investors. Mr. X30 Pham Luu Hung commented: “Because the banking industry has a very large number of listed shares, it is possible that in a certain time, investors are holding bank stocks with slow growth in the market, but not I often joke that "butt-heavy" stocks will feel like that.

However, in each year I see there are bank codes that have recorded a strong increase. Each bank has its own story each year and has a different price, so don't think that all bank stocks have a slow increase over the years.
Meanwhile, the CEO of TPBank believes that investing in banks is a sustainable investment. The banking industry inherently has certain advantages, is a financial business and has relatively high profitability compared to other industries. However, in order to decide to "go down", investors should not just look at the price at a time.

“I know there are investors who buy a cheap stock every time they see a stock without knowing it has split or split many times. Information must be captured. Besides the price story, it is necessary to consider and evaluate the operational efficiency, soundness and sustainability of a bank. Even in the event that investors buy the stock and the price drops, we are stuck there, so stay calm.

In my personal experience, usually after a period of decline, keep holding that stock, a few years later, the price will increase, even many times. The important thing is whether we have patience or not. Joining the banking industry is not easy, not to mention strict management regulations, banks have to become more and more efficient and sustainable. Therefore, choosing to invest in this industry, in my opinion, is not a bad decision, but it is important to choose which stocks are more effective than which ones," said

One of the important indicators to evaluate whether a stock in general and a bank stock in particular is attractive is the P/B ratio (Price-to-Book ratio or market value to book value). book). According to Mr. X30 Pham Luu Hung, normally a stock with a P/B around 1, even less than 1 is quite attractive. The reason is that banking is an industry with very high barriers to entry, if you can buy bank shares with a P/B below 1, it means that investors have bought at a lower price than even the founders. banks at the beginning.

However, the expert also noted that investors should not have a short-term view, several months when investing in bank stocks. The cycle of the economy and the banking industry is often quite long, so investors should take a long-term view and be more patient.

Commenting on the banking industry in 2023, Mr. Nguyen Hung - CEO of TPBank also frankly acknowledged the challenges in business operations due to the influence of other industries, as well as general difficulties from the market. Currently, the credit room is still very much, but it is very difficult for banks to lend, and the disbursed amount cannot make up for the amount of debt repayment. In addition, some large revenue sources are affected such as insurance, services or bad debts related to real estate, so banks will have to struggle to achieve profit plans. The director of the bank said that it is difficult to expect an outstanding profit of the banking industry this year.