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In the recently published annual report of 2023, The Vietnam Bank for Agriculture and Rural Development (Agribank) has declared several business indicators for the year 2024.
Specifically, the bank aims to increase its pre-tax profit by a minimum of 6% compared to 2023, reaching no lower than the profit plan approved by the State Bank.
Previously, Agribank reported a consolidated pre-tax profit of VND 25,859 billion in 2023, a 14.7% increase compared to 2022. Based on this figure, it is estimated that Agribank’s consolidated profit target for 2024 will be at least VND 27,400 billion.
Agribank stated that total assets in 2024 will increase in line with capital growth, including from both market 1 and market 2. Market 1 mobilized capital is expected to increase by 5-8%, adjusted in accordance with the growth of outstanding loans.
Agribank expects its outstanding loans to the economy to increase by 7% – 10%, in line with the plan approved by the State Bank. In particular, the target ratio of outstanding loans to agriculture and rural areas is set at 65%, while the ratio of non-performing loans under Circular 11 is below 2%. Other operating safety ratios will be ensured in accordance with regulations.
Furthermore, Agribank plans to improve the income of its employees, in accordance with the regulations of the State Bank. In 2023, according to Agribank’s report, the number of bank employees reached 42,083, an increase of 2.87% compared to 2022. The average income of employees reached VND 32.97 million per person per month, an increase of 9.75% compared to 2022.
Regarding the solutions for implementing business orientations and plans, Agribank said that it will find solutions to enhance credit growth right from the beginning of the year; continue to innovate credit mechanisms and policies, improve processes and procedures for granting credit in line with each credit product, and integrate with overall asset restructuring on the basis of improving efficiency and competitiveness;
At the same time, it will resolutely and effectively continue to implement measures to control potential debts, prevent and minimize bad debts, and handle and recover bad debts and debts that have been risk-managed.
Operating capital mobilization flexibly, combined with coordinated credit growth planning and management to optimize capital balance, ensure operational safety ratios as prescribed; enhance analysis and forecasting capacity to effectively support interest rate management.
Developing policies and solutions to develop and improve the quality of products and services, diversify e-banking products and services, meeting the increasing demands of customers.
Continuing to invest in information technology, digital transformation is a key task for 2024 and subsequent years; focusing resources on implementing solutions under the Strategic Plan for Information Technology Development and the Digital Transformation Plan, especially platform solutions and solutions supporting compliance goals, effectively meeting the requirements of business development and administration, operations, etc.
