Staying on a positive growth trajectory, ACB on course to meet its 2024 business targets
According to the report, ACB’s total outstanding loans reached 506 trillion VND, while its total deposits amounted to nearly 493 trillion VND. Year-to-date, the bank’s loan and deposit growth stood at 3.8% and 2.1%, respectively, surpassing the industry’s. Notably, CASA recorded an impressive 23.7% growth. Strong growth in core business operations along with increased interest income and service fee income pushed ACB’s total revenue to nearly 8.2 trillion VND, showing a growth of 3.1%. ACB maintained a robust return on equity (ROE) of 23.4%, continuing to be the market leader in efficiency.
As of the end of March 2024, the bank’s pre-tax profit reached 4.9 trillion VND, fulfilling 22% of the year’s target. The quarterly profit saw a slight decrease compared to the same period last year due to extraordinary income in Q1/2023 and increased loan loss provisions. Nevertheless, ACB’s non-performing loan (NPL) ratio remained well-controlled at 1.45%. Notably, excluding the NPL group according to the Circular on Inspection and Supervision of Credit Institutions (CIC), ACB’s NPL ratio would be only 1.3%.
ACBS registers impressive growth, proving to be a successful investment for ACB Group
In its Q1/2024 report, ACB highlighted the strong performance of ACB Securities (ACBS), which achieved a significant increase in pre-tax profit, doubling its earnings compared to the same period last year. This growth was driven by an overall increase across most of ACBS’s income streams. In particular, margin lending activities contributed the most to the growth, more than tripling the income in the same period of 2023. Investment operations also showed favorable results, with a two-fold growth compared to Q1/2023. Recently, ACBS raised its charter capital to 7,000 billion VND, becoming one of the top 5 securities companies by charter capital in Vietnam. This move underlines ACB Group’s long-term commitment to continue investing in high-performing business segments.
Focus on developing the FDI, green/social enterprise customer segment
Since the beginning of 2024, ACB has been focusing on developing the foreign direct investment (FDI) enterprise segment as a strategic direction for its business. Guided by a “customer-centric” approach, ACB provides tailored services to FDI customers, including payment (domestic, international), foreign exchange transactions, hedging services such as forward contracts and cross-currency swap contracts, and credit facilities (trade finance, project finance, guarantees). Currently, ACB serves FDI customers from various countries/territories, including Korea, Japan, China, Taiwan (China), Singapore, Thailand, EU countries such as France, Germany, and more, and continues to expand this important customer segment.
Moreover, in Q1/2024, ACB launched a green/social credit package with a limit of 2,000 billion VND and interest rates starting from just 6%/year, offering incentives for up to 24 months and waivers/reductions on prepayment fees. By the end of the quarter, ACB had disbursed 36% of the green/social credit package, equating to 714 billion VND.
Enhancing seamless customer experience on ACB ONE digital banking platform
Since early 2024, ACB has continuously launched digital banking products and services tailored to the needs of various customer segments. By enhancing customer experience through modern and innovative approaches, ACB has acquired 7.3 million customers as of the end of Q1/2024.
Notably, ACB has implemented a feature that allows customers to register for ACBS accounts directly on the ACB ONE digital banking app. This enables customers to invest and trade seamlessly within a single app, providing convenience and enhanced security.
Earlier in April, ACB announced the completion of its contactless payment technology ecosystem, ensuring high security for ACB Visa cardholders who can now use Apple Pay, Google Pay, Samsung Pay, and Garmin Pay. Collaborating with these tech giants helps ACB expand its reach within the payment ecosystem, aligning with the bank’s goal of delivering a “Convenient. Seamless Pay” experience for its customers.
Recently, ACB revamped its benefits policy for international credit cardholders, adding value and providing exclusive privileges throughout the year. Specifically, ACB Visa Infinite, ACB Privilege Signature, and ACB Visa Signature cardholders will now enjoy foreign transaction fees starting from 0% when making purchases overseas or online on international websites. This fee is considered one of the most competitive rates in the market.
In summary, ACB’s Q1/2024 business results demonstrate the bank’s ability to maintain a positive and prudent growth trajectory amidst a challenging economic environment. The bank also continues to seek new opportunities and expand its service offerings to better meet customer needs, with the aim of achieving its business targets set at the beginning of the year.
