Vietcombank tops the list as its key business targets last year surpassed set levels (Photo: VNA) Hanoi (VNA) - The higher the communication reputation of banks, the higher their stock prices, the Vietnam Report Joint Stock Company said.
The company's report on the banking sector with the topic ‘Communication reputation and stock price fluctuations' released by the company on December 23 said the reputation of corporations has been considered one of the decisive factors in forming risks or expectations. Investors believe that good investment opportunities will come from prestigious companies in the market.
Moreover, the reputation of businesses also conveys important information on growth potential in the long-term as well as their attractiveness to investment selection. Stock price fluctuation has been seen as one of the signs for the belief of investors towards the value of businesses.
The report said securities prices of the three most prestigious banks this year, which included the Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Joint Stock Commercial Bank for Industry and Trade and Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) have been on an upward trend.
Vietcombank top the list as its key business targets last year surpassed set levels. Its mobilised capital saw a surge with return on assets reaching 0.9 percent and return on equity touching 10.5 percent.
This meant that banks have not had bad news affecting their reputation, according to their shareholders and investors. In reality, the stock market has been an extremely sensitive place for information relating to listed companies.
This is the reason stock prices have been considered a relatively exact measure for a firm's reputation and reliability. On the other hand, a company's reputation could also have a significant impact on their stocks.
The report also said that the ranking this year saw some newcomers such as Tien Phong Bank (TPBank), Vietnam International Bank (VIB), Maritime Bank and PVCombank.
The company applied a media analysis in making these reports, through coding and analysing articles about 31 selected banks in the sector published in newspapers from July 2014 to June this year. Of the 31 banks, 26 had information about their development prospects in the future. This could be seen as a positive result for the banking sector's image and operations.-VNA
