Monday, March 4,2024 - 14:42 GMT+7  Việt Nam EngLish 

KienlongBank (KLB) completed the plan, reaching VND719 billion pre-tax profit in 2023 

 Monday, February 12,2024

AsemconnectVietnam - In parallel with increasing the proportion of investment in technology and promoting digital transformation to build a strong pivotal year in the digitalization roadmap, KienlongBank's business results in the fourth quarter of 2023 also recorded many positive results, exceeding annual goals.

KienlongBank's financial picture improved in the last quarter of the year
Kien Long Commercial Joint Stock Bank (KienlongBank, UpCoM: KLB) has just announced its financial report for the fourth quarter of 2023. The recorded results have shown signs of improvement in the Bank's overall financial picture. With the flexible and prudent direction and management of the Government and the State Bank (SBV), KienlongBank's Board of Directors has implemented many sensitive solutions and proactively responded to market difficulties. Data as of December 31, 2023 recorded that KienlongBank's total assets reached VND86,972 billion; Customer deposits reached VND56,897 billion, outstanding credit reached VND52,580 billion, exceeding the yearly plan.
In the business results report, KienlongBank recorded a net profit of VND542.6 billion; Profit from service activities reached VND144.6 billion, while net profit from foreign exchange trading activities and buying and selling investment securities brought the Bank VND22.3 billion and VND31.8 billion, respectively. KienlongBank's pre-tax profit in the quarter was recorded at VND79.5 billion, bringing the total profit in 2023 to VND719 billion, reaching 102% of the plan approved by the General Meeting of Shareholders in April, bringing Total profit after tax is VND574 billion.
In the digitalization strategic roadmap, the Bank spends most of its resources investing in technology and digital transformation to increase productivity as well as improve customer service efficiency. This is also one of the costs that accounts for a large proportion of the Bank's total operating costs in the quarter. However, to meet the dual goal of preparing a solid foundation for a breakthrough and maintaining business efficiency, KienlongBank has proactively optimized operating costs, thereby reducing overall costs, ensuring Ensure profits reach plan.
This is the first year under the leadership of the Board of Directors and Supervisory Board for the new term (2023 - 2027), to achieve these positive business results, KienlongBank has focused credit on the fields of production - business, priority areas and growth drivers according to the Government's policies; Consider giving priority to granting credit according to the Green Classification List, providing loans to meet people's housing needs; Strictly control credit in potentially risky areas. At the same time, through the restructuring of outstanding loans, the Bank also creates favorable conditions for customers who are individuals, small and medium-sized enterprises, cooperatives, and production models that apply high technology participate in the value chain, access credit capital, and develop business.
2023 is also the year that recognizes KienlongBank's joint efforts in supporting people and businesses when 8 consecutive times it reduces lending interest rates with a total reduction of over 3%, exceeding the target set by the Government and the State Bank proposed (from 1.5 - 2%). Not stopping there, opening the first days of 2024, understanding the spending and business needs of customers, KienlongBank has launched a 0% loan interest rate incentive program with the hope of providing support strongly, increasing access to capital for customers during this important time.
Notably, thanks to strict risk management measures and cautious risk appetite, reducing the proportion of loans to risky areas, KienlongBank's bad debt ratio remains below 1.5%, belonging to the low group in the market, ensuring compliance with regulations of the State Bank. In addition, in the fourth quarter of 2023, KienlongBank also proactively used resources by setting aside VND229 billion provisions to improve resources, increase buffers, cover bad debts, and make efforts to control The bad debt ratio is below the prescribed level, while reducing pressure on provisions for the coming years, reducing the impact of bad debt in the future.
Accelerating digital transformation, aiming to build a comprehensive ecosystem by 2025
Expecting the recovery momentum of the Vietnamese economy in particular in the coming year, to complete the goals in the assigned key plan, KienlongBank has closely followed the directions from the Government and the State Bank of Vietnam, making money. issues to implement key groups of solutions such as focusing on improving administrative capacity, focusing on governance issues according to international practices; Strengthen supervision and compliance with regulations and standards in banking operations; Drastically implement restructuring solutions and handle bad debts; promote digital transformation.
In addition to market-sensitive business decisions, KienlongBank also aims to take sustainable development and selective growth as a guiding premise to achieve the goal of becoming a leading bank in the retail segment, supporting consumer demand and small and medium enterprises (SMEs).
By identifying digital transformation as a key task that is thoroughly and drastically directed, KienlongBank has been deploying many integrated digital products on the basis of single digital products for development and application. AI technology to meet and support maximum customer needs such as MyShop - Paybox solution set, KienlongBank Pay payment solution...
At the same time, KienlongBank also strengthens the expansion of its cooperation network with many banking agent partners and e-commerce sites to further improve customer experience and establish a digital ecosystem, meeting the needs of diverse customer groups. KienlongBank expects to create a new standard of a comprehensive digital banking model, creating a new position of banking services in the eyes of customers.
Source: VITIC/Tinnhanhchungkhoan


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