Thursday , November 7 2024

ABBANK profits falls sharply on bad debt provisioning

 

Customers conduct transaction at an ABBANK branch in HCM City. — Photo courtesy of the bank

HCM CITY — An Bình Commercial Joint Stock Bank (ABBANK) provisioned nearly VNĐ1.49 trillion (US$60.87 million) for credit risk last year, sending its pre-tax profit plummeting to VNĐ513 billion ($20.9 million) as against a target of VNĐ2.8 trillion ($114.45 million).

Its total assets as of December 31 were worth VNĐ162 trillion, a 24.5 per cent increase for the year.

Loans outstanding were worth VNĐ102.45 trillion, up 15.7 per cent, meaning the bank almost fully used up its credit quota.

It had deposits of VNĐ115.65 trillion, up 25.9 per cent.

Its non-interest income rose by 125 per cent to VNĐ992 billion, accounting for 23 per cent of total earnings.

Net interest income was worth VNĐ2.83 trillion, lower than last year, partly due to a cut in lending interest rates to support businesses amid the difficult economic situation on the Government’s direction.

ABBANK’s capital adequacy ratio was 11.1 per cent, much higher than the minimum of 8 per cent stipulated by the State Bank of Vietnam.

Its non-performing loans ratio was 2.17 per cent, much lower than the SBV’s recommended ceiling of 3 per cent.

The lender reported 11.8 per cent and 63 per cent increases in the number of customers using its digital banking channels and transactions.

The bank said its results did not meet expectations and reflected two realities: difficulties in the market that deeply affected the banking and financial system and its own ineffective organisational structure and operating mechanism.

ABBANK has focused resources on implementing a key project “Refreshing the Banking Strategy” with the advisory and support of McKinsey, a global strategy and management consulting company. — VNS

 

 

 

Read More :
- Reduce Hair Loss with PURA D’OR Gold Label Shampoo
- Castor Oil Has Made a “Huge” Difference With Hair and Brow Growth
- Excessive hair loss in men: Signs of illness that cannot be subjective
- Dịch Vụ SEO Website ở Los Angeles, CA: đưa trang web doanh nghiệp bạn lên top Google
- Nails Salon Sierra Madre