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ABBANK (ABB) recorded VND513 billion profit before tax in 2023 

 Wednesday, January 31,2024

AsemconnectVietnam - 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: Tinnhanhchungkhoan.vn
 

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