ABBANK profit plummets in H1
ABBANK profit plummets in H1
An Bình Commercial Joint Stock Bank (ABBANK) has reported a pre-tax profit of VNĐ638 billion (US$27 million) in the first half of the year, meeting only 23 per cent of its goal for 2023.
A customer conducts transaction at a ABBANK branch in HCM City. ABBANK’s pre-tax profit reached VNĐ638 billion (US$27 million) in the first half of the year. — Photo courtesy of the bank |
ABBANK made a risk provision of VNĐ815 billion (US$34.4 million) in the half.
It had total deposits from customers of VNĐ95.7 trillion ($4.04 billion), up 12 per cent year-on-year, and outstanding loans of VNĐ90.4 trillion ($3.8 billion), a year-on-year increase of 6 per cent.
Its earnings from services rose by 23 per cent over the same period last year, reaching VNĐ715 billion ($30.2 million).
The capital adequacy ratio at the end of Q2 was 11.37 per cent, higher than the minimum ratio of 8 per cent stipulated by the State Bank of Vietnam, ensuring the ability to pay debts, and deal with credit and operational risks.
The bad debt ratio was controlled at 2.9 per cent. Although its bad debts tended to increase along with the whole banking industry, these debts are secured by assets, the bank said.
As of June 30, ABBANK's total assets reached VNĐ154.3 trillion ($6.5 billion), an increase of 18 per cent compared to the end of 2022.
In the second quarter, ABBANK completed raising its charter capital to more than VNĐ10.3 trillion ($435 million) through the issuance of shares to pay a dividend at a rate of 10 per cent.
In addition to participating in the 2 per cent interest rate subsidy programme in accordance with Government Resolution No.31 and the SBV’s Circular No.03, the bank also cut its lending interest rates many times and rolled out preferential lending packages to support customers.
It has also streamlined procedures to make it easy for customers to access its products and services.
Lê Thị Bích Phượng, acting general director of ABBANK, said ABBANK and many other banks are being impacted by unfavourable market conditions, which affect its business results and the implementation of the 2023 plan.
ABBANK will still be consistent with its chosen path and strategy that focus on promoting business and risk management effectively, optimising operational costs, building a digital platform and developing financial solutions to meet the changing needs of customers, thereby creating a sustainable development foundation for the bank, she said.
