A Transformational Year for PGBank: Rising to New Heights

At the annual general meeting of shareholders, the Bank for Prosperity and Development (PGBank) reviewed its financial situation and made several important decisions. Following the event, Mr. Nguyen Van Huong, Member of the Board of Directors and General Director, shared the unit’s achievements and future vision.

Could you provide an overview of PGBank’s business performance in 2024?

2024 marked a significant transformation for PGBank, achieving remarkable milestones despite volatile global and domestic economic conditions. The bank proactively reviewed and adjusted its mechanisms, issued internal regulations, complied with laws, and followed the directions of the State Bank of Vietnam. Optimizing operational processes, upgrading our brand identity, and expanding our transaction network were key steps in establishing a solid foundation. We also boosted our business by opening five new branches and four transaction offices, renovating multiple locations with our new brand identity.

As a result, the bank witnessed exceptional growth. Specifically, PGBank’s total assets increased by 32%, credit balance by 15.8%, and customer deposits by 21.26%. The bank’s pre-tax profit also rose by 21% compared to the previous year, while the bad debt ratio decreased by 0.5% to 2.07%.

2024 was a pivotal year, marking a notable turning point in our journey of restructuring and reshaping our position in the financial market.

What are PGBank’s goals and plans for 2025?

This year, the global geopolitical and trade landscape is expected to remain complex, with ongoing US tariff policies and conflicts between some countries. Consequently, disruptions in global supply chains, polarized monetary policies among nations, and pressures on exchange rates, interest rates, and investment flows will pose challenges in terms of competition and risk management for the bank.

Domestically, the economy is projected to sustain growth, with a government target of 8% GDP increase, along with the commitment and active support of the State Bank of Vietnam.

In this context, PGBank identifies 2025 as another pivotal year, gearing up for acceleration and breakthroughs in the future. Our comprehensive development goal includes a planned pre-tax profit of 1,001 billion VND. We will take decisive actions, focusing on four key tasks: continuing to streamline the organizational structure to enhance labor productivity, undergoing a robust digital transformation to enhance customer experience, improving operational processes and optimizing system efficiency, and effectively managing risks and controlling bad debt ratios.

PGBank will refine its organizational model and enhance human resource quality by modifying procedures and regulations, expanding our network, and adopting advanced information technology. We streamline functional departments and automate business processes, implement operating standards for branch-level operations, simplify loan application procedures, and periodically review and upgrade internal regulations to update and standardize credit and risk management processes.

Another key objective is to improve PGBank’s ranking by enhancing asset quality, increasing capital and capital adequacy ratios, strengthening financial capacity, improving business efficiency, optimizing operations to increase profits and enhance critical financial indicators, and adopting advanced risk management models to enhance control and supervision, ensuring compliance with operational safety indicators.

With these strategic directions, I believe PGBank will enhance its service quality, operational efficiency, and build a solid foundation for the journey ahead, ready to accelerate and make breakthroughs in the future.

Given these directions, what results has PGBank achieved in the first quarter?

In the first quarter, PGBank recorded relatively positive results: total assets reached 74,890 billion VND, up 25% year-on-year (58,763 billion VND) and 2.5% compared to the end of 2024 (73,015 billion VND). Market 1 capital mobilization grew steadily to 46,717 billion VND, a 25% increase year-on-year (37,244 billion VND), while credit balance reached 45,347 billion VND, a 29% rise year-on-year (35,186 billion VND), reflecting PGBank’s agile credit management in line with the State Bank’s guidance.

Profit from business operations before credit risk provision expenses reached 242.5 billion VND, a significant 53.4% increase year-on-year. The bad debt ratio was maintained at a safe level of 2.09%.

Additionally, to meet the market’s and the world’s digital transformation needs, PGBank is focused on implementing the Omni-channel banking project and rebuilding our core banking system for optimal operational efficiency this year. We are always prepared for changes to meet the market’s stringent requirements.

These positive results must stem not only from business strategies but also from human resources. How do you assess the role of corporate culture in PGBank’s development plan?

Corporate culture is the foundation of PGBank’s sustainable development. We focus on building core values that prioritize dedication, professionalism, reputation, and standards in all behaviors. With these core values as our premise, we implement specific actions such as regular training and staff development, process improvement, adoption of new technologies, and maintaining transparency and fairness in all activities.

Our motto for 2025 is “United for Height, Innovative for Sustainability,” encouraging creativity within the organization. Accordingly, PGBank will launch multiple competitions for process improvement, system innovation, operational digitalization, and more, expecting to contribute significantly to the bank’s future breakthroughs.

We are confident that with the strong foundation laid in 2024 and our focused, well-structured strategy in 2025, PGBank will continue to develop effectively and sustainably, creating long-term value for customers, shareholders, and employees.