AsemconnectVietnam - Saigonbank (SGB) will increase its charter capital by VND308 billion; NCB tobe approved to increase its charter capital to more than VND11,800 billion; International Bank (VIB) finalizes the right to pay 6% dividend in cash; ACB spends VND2,000 billion in green credit to create sustainable growth opportunities for businesses; TPBank's (TPB) CASA grows impressively in 2023.

Saigonbank (SGB)
The State Bank (SBV) has just issued a document approving the request to increase charter capital in 2023 of Saigon Bank for Industry and Trade (Saigonbank, code SGB) by VND308 billion, to VND3,388 billion through dividend payment in shares at the rate of 10%.
The plan to issue shares to pay existing shareholders of Saigonbank has been approved by the 2023 General Meeting of Shareholders. After the issuance is completed, the number of outstanding shares will increase from 308 million shares to 338.8 million shares, equivalent to the charter capital increasing to VND3,388 billion.
This will be the first time in more than 10 years that Saigonbank will continue to increase its charter capital. The most recent time was in 2012 when the Bank issued shares to existing shareholders. Saigonbank's charter capital has remained the same at VND3,080 billion over the past 10 years, among the lowest among commercial banks, only slightly higher than PGBank. Currently, PGBank is planning to increase its charter capital to VND5,000 billion.
Saigonbank said that the increased charter capital will be used to invest in facilities and technology infrastructure of VND250 billion, expand the operating network and expand credit and capital business activities. Currently, Saigonbank is the bank with the lowest total assets among listed banks, reaching only nearly VND30,000 billion at the end of September 2023.
According to the financial report of the third quarter of 2023, Saigonbank recorded a profit after tax of more than VND52 billion, an increase of 9% compared to the third quarter of 2022. Accumulated in the first 9 months of the year, the Bank earned VND200 billion in profit after tax, an increase of 5.7%.
As of September 30, 2023, Saigonbank's total assets increased by 7.2% to VND29,681 billion, of which customer loans increased by 4.3% to VND19,516 billion. Customer deposits reached VND22,878 billion, equivalent to an increase of 11.6% compared to the end of last year.
National Commercial Joint Stock Bank
The State Bank has just approved the capital increase of the National Commercial Joint Stock Bank (NCB - stock code NVB). Accordingly, NCB is allowed to issue individual shares to increase its charter capital by a maximum of VND6,200 billion.
The plan to increase charter capital was approved by NCB's 2023 Annual General Meeting of Shareholders in April 2023 and implemented by NCB's Board of Directors according to regulations. The purpose of offering additional shares and increasing charter capital is to supplement capital for business activities and strengthen the bank's financial capacity.
Accordingly, NCB Bank will issue and offer for sale 620 million shares at a price of 10,000 VND/share, to increase its charter capital by VND6,200 billion. If the issuance is successful, NCB's charter capital will increase from VND5,602 billion to VND11,802 billion.
According to the plan, NCB will issue the shares immediately after being approved by the State Securities Commission (expected in the second quarter of 2024). The transfer of these shares is restricted within 01 year from the date of completion of the offering.
NCB is responsible for increasing its charter capital in accordance with the law and notifying in writing investors purchasing shares of NCB to fully fulfill shareholder obligations in accordance with the provisions of Article 54, Article 54. 55 Law on Credit Institutions, Circular No.50/2018/TT-NHNN dated December 31, 2018 of the Governor of the State Bank of Vietnam and other relevant legal documents.
The increase in charter capital is a positive signal, creating an important boost for NCB's comprehensive and strong transformation process, towards the bank's strategic goals. Especially in the context that NCB is constantly improving its technology platform to serve the goal of comprehensive digitalization, investing in solutions, products, services, adding value to customers and joining hands with consulting organizations. The world's leading strategy drastically implements the new strategy for the period 2023 - 2028.
The year 2023 marks a strong transformation of National Citizen Commercial Joint Stock Bank (NCB) with comprehensive innovation in both appearance and internal strength. In parallel with consolidating the apparatus with the participation of many dedicated personnel with extensive expertise and experience in the Finance - Banking industry, NCB also invests in building a data and technology infrastructure platform to launch comprehensive digital products and increase customer experience. Currently, NCB has upgraded the T24 core banking system to the most modern R21 version on the market, increasing user service speed and strengthening internal management and operations. Digital transformation projects are continuously deployed to help customers have a smoother and more convenient experience such as: upgrading the card core system, applying eKYC process to open accounts, withdrawing money without a physical card at ATM…
In August 2023, NCB opened a new headquarters located in a prime location in Hanoi Capital. The bank also focuses on building a working environment with the best conditions and welfare regimes for the development of personnel, and was honored by the HR Asia Awards as "Best Place to Work in Asia 2023" (The Best Companies to Work for in Asia 2023).
NCB's transformations have brought many positive signs. In 2023, the bank recorded the fastest customer growth rate in the past few years. According to statistics, the number of customers at NCB in the first 9 months of the year increased by more than 33% compared to the same period last year. The bank has also reached 1 million customers in 2023 according to the set target. By the end of the third quarter of 2023, total capital mobilization from customer deposits at NCB increased by nearly VND5,000 billion compared to the end of the previous quarter and increased by more than VND4,000 billion compared to the end of 2022. These results show the increasing trust of customer on NCB's stable, transparent and developed operations.
The addition of financial resources also demonstrates the bank's determination and strong actions in the journey of restructuring and comprehensive transformation. At the same time, it affirms NCB's increasing competitiveness in the market and NCB's readiness for a breakthrough in the coming period.
International Bank (VIB)
As the first bank to announce cash dividends in 2024, Vietnam International Commercial Joint Stock Bank (VIB - HOSE) said that on January 22, it will finalize the right to advance cash dividends with rate 6%.
This is VIB's 2023 advance dividend. Accordingly, shareholders owning 1 share will receive VND600 and with more than 2,536.8 million outstanding shares, VIB will have to spend VND1,522 billion to pay dividends to existing shareholders.
Ex-rights trading date is January 19, expected dividend payment time is February 21, 2024.
The above dividend plan has been consulted by VIB for approval in the last days of 2023.
Specifically, according to VIB's third quarter 2023 separate financial report (audited by KPMG), profit after tax in the first 3 quarters of the year is VND6,614 billion, the bank's undistributed profit is VND7,133 billion.
According to financial regulations, VIB will set aside at least 15% of the year's after-tax profit for equity funds (including 5% for the reserve fund to supplement charter capital and 10% for the finance reserve fund), the amount set aside for funds calculated on the profit of the first 3 quarters of 2023 is VND992 billion.
Thus, the source of undistributed profits after making provisions for funds is VND6,141 billion, so VIB can use part of this amount to advance cash dividends at the dividend advance rate. Cash on charter capital is 6% and still ensures compliance with capital safety and liquidity regulations of the State Bank.
Notably, according to the financial model and feasibility forecast, VIB is expected to achieve profit after tax for the whole year 2023 of VND8,640 billion and undistributed profits as of December 31, 2023 are expected to reach VND9,159 billion.
According to financial regulations, VIB will allocate a minimum amount to equity funds based on the full year 2023 profit of VND1,296 billion. Thus, the source of undistributed profits after making provisions for funds is VND7,863 billion, an increase of VND1,722 billion compared to the data as of September 30, 2023. Therefore, VIB can proactively advance cash dividends at a rate of 6% while still ensuring it does not affect equity capital and continue to ensure good safety ratios and according to the law.
At the same time, VIB believes that the implementation of cash dividends, including advance dividends of the immediately preceding fiscal year in the first quarter of each year, demonstrates consistency in the Bank's dividend payment policy and ensure the rights of shareholders.
ACB
In early 2024, ACB launches a Green/Social Credit package of VND2,000 billion with many incentives for businesses with production and business plans that are beneficial to the environment and society.
The Green/Social Credit Package, in addition to providing important additional capital from banks to businesses in the market, is also a way for ACB to develop sustainably with customers and partners, in accordance with the industry development strategy. The bank is associated with the task of developing green credit - green banking set by the State Bank of Vietnam.
ACB Green/Social Credit Package is built based on the categories and criteria of the Green/Sustainable Finance Framework, advised and guided by the International Finance Corporation (IFC) to ensure compliance with international regulations but still consistent and consistent with the bank's internal processes. The green/sustainable finance framework follows the Green Bond Principles and Sustainable Bond Principles established by the International Capital Markets Association (ICMA) and the Green/Sustainable Lending Principles established by Loan Market Association (LMA).
ACB will prioritize credit financing for businesses with production and business plans in the Green List or Social List. Accordingly, businesses in the Green List that qualify include renewable energy (solar power); efficient use of energy; green building; pollution control and prevention; clean transportation (including hybrid vehicles); sustainable water management and wastewater treatment; sustainable management of the living environment, natural resources and land use. For the Social Category, qualified and women-owned businesses that demonstrate progress and equal empowerment will receive priority access to capital from ACB.
Implementing the Green/Social Credit growth target with a limit of VND2,000 billion, ACB also supports businesses by offering preferential interest rates from only 6%/year for short-term and long-term loans. Loans also have the option to maintain incentives for up to 24 months and have early repayment fees waived/reduced. In addition, businesses can also optimize costs and increase business efficiency when using the financial solution "ACB 0 fee" for account services, cash flow management, international money transfer or licensing. Credit by way of L/C Letter of Credit, Guarantee, Export Contract Financing.
Mr. Ngo Tan Long, Deputy General Director of ACB said: "The Green/Social Credit Program with outstanding incentives is a comprehensive financial solution proactively provided by ACB to businesses. We are ready to accompany businesses moving towards sustainable development. In the long term, we will promote green capital according to ACB's ESG implementation strategy."
With the newly implemented Green/Social Credit package, ACB will have standards for evaluating and monitoring capital use to ensure capital is used for the right purpose, bringing benefits to businesses when choosing according to direction of sustainable development, and ACB itself will have a "net" to screen businesses that have good impacts on the environment and society to continue accompanying.
On the pioneering journey of implementing ESG, ACB has integrated sustainable development strategies into business activities. It is known that ACB is developing a Green/Sustainable Bond Framework and will announce it in the near future. The goal is to increase green capital to finance green projects in Vietnam, as well as create conditions for Businesses have more choices and opportunities to expand production and business in a sustainable way.
In 2023, ACB was the pioneer bank in Vietnam to publish its own report on Sustainable Development (ESG) and carry out a series of environmental protection activities to inspire and spread a sense of responsibility for the living environment to shareholders, partners, customers and the community.
TPBank
By the end of 2023, total assets of Tien Phong Commercial Joint Stock Bank (TPBank, HOSE: TPB) is VND356,000 billion, an increase of 8.5% compared to the end of 2022, charter capital increased at more than VND22,000 billion.
The steady increase in capital has provided a strong financial foundation, combined with risk management to keep TPBank's capital adequacy ratio (CAR) according to Basel III standards at 12.4% as of December 31, 2023, in the top group of the industry, maintaining the principles of loan growth and capital safety.
TPBank extended its customer growth chain with 3.5 million newly opened accounts, bringing the total number of customers served to exceed 12 million. In just 3 years, with a leading and comprehensive digital banking strategy, TPBank has attracted more than 8.6 million customers, double the total number of customers in the previous 12 years. This achievement of TPBank is not only a testament to its ability to attract and retain customers but also a solid step forward in increasing the proportion of quality CASA capital resources of the bank. Since then, the proportion of demand deposits increased by 34%, exceeding VND47,000 billion.
Well regulating mobilization growth needs according to capital usage needs to achieve the best efficiency; the bank's total mobilization in 2023 reach VND316,500 billion, an increase of nearly 9.5% and exceeding the yearly plan.
In order to ensure credit quality, TPBank also boosted provisioning; double that of 2022, at more than VND3,900 billion. This shows that the bank has proactively used resources to cover bad debts, control the bad debt ratio below 2%, reduce pressure on provisions for the coming years, and reduce the impact of bad debts in the future.
Total operating income reached more than VND16,000 billion, mostly from net interest income, which increased by nearly 9.1%, to VND12,500 billion. Accompanying businesses/individuals during the recovery period of the economy, TPBank has actively reduced loan interest rates for existing customers, with the total interest reduction for the whole year 2023 reaching up to VND1,950 billion. At the end of the year, the bank recorded a profit of VND5,600 billion, corresponding to an ROE ratio of over 13.77%, relatively high in the context of the economic slowdown last year.
Success comes from outstanding products, building a solid position in the market
With many diverse loan products across many segments, TPBank's loan balance exceeds VND217,000 billion, growing nearly 19% compared to 2022, far exceeding the average growth of the entire industry. This comes from breakthroughs in lending methods and technology applications to support customers in all segments. TPBank's diverse loan packages are well received by the market through affiliated channels, giving customers a smooth and convenient loan experience.
Lending features through LiveBank have increased flexibility and convenience, helping to optimize customer experience. TPBank is also very ready to accompany customers to overcome difficulties by continuously updating preferential interest rate policies, implementing measures to reduce interest rates and reduce fees to support businesses and individuals with a scale of tens of thousands of billions dong.
Besides the lending segment, TPBank's card products also created breakthroughs in the market when nearly 1.5 million new cards were opened, the total value of card transactions reached about VND40,200 billion. Of which, spending transactions via TPBank VISA card alone exceeded the USD1 billion mark, bringing the bank to the top 3 position in terms of card transaction sales growth. In particular, the most impressive growth came from VISA Signature card transaction sales, bringing TPBank to the leading position in the industry.
In 2023, TPBank continues to register for many major awards, of which TPBank holds the top position in Vietnam for the second time in a row on the list of "Strongest Banks in Asia Pacific" by The Asian Banker. In particular, 2023 is the first year that TPBank appears in the Brand Finance Rankings with a brand value exceeding 425 million USD, bringing the bank to the Top 5 private banks with the highest brand value in Vietnam. Vietnam Rating Report Joint Stock Company (VNR) ranks TPBank as one of the 10 most prestigious Vietnamese commercial banks, and also one of the 4 most prestigious private banks of 2023. TPBank has cooperated continues to maintain its position in this ranking for 5 consecutive years.
Recognition by reputable domestic and foreign evaluation and ranking organizations has affirmed the journey of steady progress, very accurately reflects market correlation and is the best recognition for continuous efforts of TPBank in recent times, for the journey to 2024 and many years of development to come.
ABBANK (ABB)
By the end of 2023, the business results of An Binh Commercial Joint Stock Bank (ABBANK - stock code ABB) recorded growth in terms of operating scale, mobilization indicators and credit balance.
With the orientation of developing the retail banking segment, ABBANK recorded growth in the number of customers in both individual and SME customer groups, 22% and 15% respectively over the same period. The transaction scale on digital banking channels recorded growth, with the number of transaction customers increasing by 11.8% and the number of transactions on digital channels increasing by 63% compared to 2022 (reaching nearly 33.3 million transactions/year).
ABBANK's total assets at the end of 2023 reached VND161,966 billion, an increase of 24.5% compared to the end of 2022; Outstanding credit debt reached VND102,448 billion, an increase of 15.7% compared to 2022 - close to the granted credit room; Mobilization from customers reached VND115,654 billion, an increase of 25.9%; CASA balances also increased slightly at 5.7% compared to 2022.
In 2023, in accordance with the orientation of reducing dependence on credit, income from services will reach VND992 billion, growing 125% compared to 2022, contributing 23% to ABBANK's total income. In addition, with policies to adjust lending interest rates to promptly support businesses in difficult times under the direction of the Government, net interest income for the whole year reached VND2,833 billion.
In the context of increasing bad debt across the industry, in 2023, ABBANK has carefully set aside VND1,489 billion for credit risk provision costs, promoting bad debt coverage ratio, ensuring sustainable operations of the bank.
Accordingly, pre-tax profit in 2023 is recorded at VND513 billion.
Proactively applying risk management standards according to Basel II and Basel III, ABBANK's capital quality remains at a safe level, with the capital adequacy ratio (CAR) at the end of 2023 reaching 11.1 %, demonstrating a solid capital framework with a good capital buffer compared to the SBV's minimum requirement of 8%.
The bad debt ratio at the end of 2023 will reach 2.17%, well controlled within the SBV's regulation level of <3%.
Business results in 2023 did not meet expectations, thereby reflecting two realities: one is that market difficulties have deeply affected the banking and financial system; Second, ABBANK's organizational apparatus and operating mechanism are not effective, causing business results not commensurate with potential.
In this context, ABBANK has focused resources on implementing the key project "Refreshing Banking Strategy", with the advice and companionship of McKinsey - a global strategic management consulting company.
Accordingly, 2024 is a pivotal year to strengthen the foundation and create a basis for future growth. From comprehensive market and customer research analysis, ABBANK will prioritize implementing initiatives to bring the best solutions and services to target customer segments in physical and digital channels.
N.Nga
Source: VITIC/Tinnhanhchungkhoan