AsemconnectVietnam - Nam A Commercial Joint Stock Bank (Nam A Bank - code NAB) has just announced its business results for the first 9 months of 2024 with many important targets having reached the annual plan.

Specifically, as of September 30, 2024, Nam A Bank's total assets reached nearly VND240,000 billion (up nearly 16% over the same period in 2023, completing 103% of the annual plan); capital mobilization reached nearly VND173,000 billion (up more than 5% over the same period in 2023, completing 97% of the annual plan), outstanding loans reached nearly VND164,000 billion (up nearly 24% over the same period in 2023, reaching 102% of the annual plan). These growth targets contributed to Nam A Bank's pre-tax profit reaching more than VND3,300 billion (up 63% compared to the same period in 2023, completing 83% of the annual plan)...
Notably, Nam A Bank maintained an average profit of more than VND1,000 billion/quarter. Net interest income in the third quarter increased by more than VND1,500 billion, equivalent to an increase of more than 34% compared to the same period in 2023.
This profit can be attributed to the contribution from the digital banking segment. Accordingly, Nam A Bank has continuously upgraded the Digital Banking ecosystem including: ONEBANK, OPBA robot and Open Banking. In particular, since its implementation, ONEBANK has grown remarkably with a transaction growth rate of more than 40% per quarter. The total capital mobilized from ONEBANK accounts for nearly VND10,000 billion (accounting for 6% of total mobilization).
In addition, as a pioneer bank in the field of green credit, Nam A Bank has deployed a green credit value chain, focusing on the agriculture, aquaculture, and renewable energy sectors and aiming to increase the proportion of green credit to 20-25% (2-3 times higher than the current proportion).
In addition, the bank's ROE, ROA, and NIM ratios have also improved significantly. As of September 30, 2024, the ROE ratio reached 22.09%, ROA was 1.63%, showing that the bank not only grew in scale but also achieved high profitability.
The NIM ratio increased to 3.77% compared to 3.6% at the end of the second quarter of 2024. The bank expects NIM from now until the end of 2024 to remain around 3.5-3.8%, with interest rates remaining low to support individuals and businesses in the context of many economic difficulties.
Regarding operating costs (CIR), as of September 30, 2024, it reached around 40.46%, which is relatively optimal. Nam A Bank aims for salaries and benefits to be in the group of 7-10 best banks in Vietnam to attract talent along with increasing network expansion, investing heavily in technology to increase technology content in products and services. Therefore, in this period, CIR is targeted at around 40-45% to create a premise for the bank to grow strongly in the coming years.
The bank currently has nearly 250 business locations nationwide, including nearly 150 traditional business locations (branches, transaction offices) and 101 ONEBANK locations. Although operating costs have increased, CIR has gradually improved over the years. Nam A Bank complies with liquidity indicators, meeting Basel III criteria. Capital adequacy ratio CAR is over 11.11% (minimum as prescribed by the State Bank of Vietnam is 8%), loan-to-deposit ratio LDR is 75.72% (maximum as prescribed by the State Bank of Vietnam is 85%), liquidity reserve ratio LCR is 21.11% (minimum as prescribed by the State Bank of Vietnam is 10%), 30-day payment capacity ratio VND is 87.51% (minimum as prescribed by the State Bank of Vietnam is 10%), short-term capital ratio for medium and long-term loans is 17.56% (maximum as prescribed by the State Bank of Vietnam is under 30%). Nam A Bank still maintains a stable and safe liquidity strategy.
Regarding Nam A Bank's non-performing loan (NPL) ratio, it is around 2.85%. The bank aims to reduce this ratio to 2% and may increase the provisioning by VND300-500 billion to increase the debt coverage ratio (LLCR) to 55-60%.
In the first 9 months of 2024, Nam A Bank's transparent and stable operations have also been demonstrated through many important milestones such as: Completing the project of converting financial statements according to international standards (IFRS), contributing to the transparency and healthiness of financial reporting information according to international standards of the bank to investors, especially foreign investors; Moody's upgraded Nam A Bank's credit rating in two categories: asset quality from B3 to B2 and profit and profitability indicators from B2 to B1, while rating the issuer with a "stable" outlook; The bank completed the handover of the ESMS environmental and social risk management system to Pacific Risk Advisors LTD (PRA), marking an important step in implementing and completing the pillars to reach Level 5 Green Bank; Since the beginning of the year, this is the only bank with shares listed on the HoSE...
N.Nga
Source: VITIC/Tinnhanhchungkhoan