Amidst a challenging market landscape, Nam A Bank recorded impressive growth in key business indicators, emerging as a bright spot in its Q1/2024 financial report. It is a solid foundation for Nam A Bank to realize the business targets set forth at the recent General Meeting of Shareholders, continuing the path toward sustainable development.
Accordingly, the bank achieved pre-tax profit of nearly VND 1,000 billion, an increase of VND 236.4 billion or 30.98% year-on-year, fulfilling 25% of the 2024 plan. The improved business results can be attributed to increased interest income and a significant reduction in provisions due to the resolution of debts at VAMC.
Notably, this is the first time Nam A Bank has recorded a quarterly profit of nearly VND 1,000 billion. Of which, net interest income increased by VND 163 billion, representing a 10.48% year-on-year growth. Income from service activities increased by VND 78.9 billion, a 60.83% surge compared to the same period in 2023.
As of March 31, 2024, Nam A Bank’s total assets reached over VND 216 trillion, growing by VND 6,275 billion since年初, fulfilling 93% of the annual plan. Capital mobilization reached VND 167.2 billion, while outstanding loans reached nearly VND 146.7 billion, representing an increase of 2.05% and 3.76% respectively compared to the beginning of the year.
Regarding non-performing loans, the bank continued to effectively manage its NPLs in accordance with the State Bank of Vietnam’s regulations. Group 2 NPLs declined, while other groups recorded a slight increase. According to economic experts, given the positive economic outlook for the remainder of the year and the banking sector’s robust risk management, Nam A Bank is poised to continue reaping positive results in NPL control and resolution.
In addition, Nam A Bank completed the resolution of its outstanding debts with VAMC in 2023, amounting to over VND 1,744 billion. This has further fueled growth momentum while significantly reducing the need for provisions in Q1/2024 compared to the same period last year. The bank reduced its credit risk provisioning by VND 112 billion year-on-year.
Also in Q1/2024, Nam A Bank officially transferred to the HoSE, marking a significant milestone in its development journey. This move will enhance the bank’s position, affirming its transparency, credibility, and commitment to sustainable growth in the market.
In parallel, in February 2024, the bank also received an upgrade in its credit ratings from Moody’s for several key indicators. Specifically, Moody’s upgraded Nam A Bank’s asset quality rating from B3 to B2 and its profitability and earnings metrics from B2 to B1. Despite the challenging economic environment, Moody’s maintained a “stable outlook” for Nam A Bank, reflecting the international rating agency’s confidence in the bank’s operations.
In terms of network expansion, Nam A Bank currently operates close to 250 business locations nationwide, including nearly 150 traditional outlets (branches and transaction offices) and 100 ONEBANK locations. In late 2023, the State Bank of Vietnam approved the establishment of five additional branches and three transaction offices. The bank also plans to open 30 new ONEBANK locations this year.
