Inspiring business figures underpin Eximbank's future growth
Inspiring business figures underpin Eximbank's future growth
Eximbank’s pre-tax profit reached a record $167.5 million in 2024 with exceptional growth indicators despite the financial and banking sector facing numerous challenges.
According to Eximbank’s financial report for the fourth quarter of 2024, the bank – among the leading mid-size banks in Vietnam – has achieved remarkable growth with a net interest income approximating $237 million, showing a 29 per cent jump on-year.
Eximbank reached a record-breaking profit after 35 years. Photo: Eximbank |
Its pre-tax profit exceeded $167.5 million, soaring 54 per cent from the previous year, while post-tax profit was $133 million, also up 54 per cent on-year.
The highlights of Eximbank's business performance came from the restructuring of its loan portfolio towards safety and efficiency, particularly in the small- and medium-sized enterprise (SME), individual, and business production and consumer needs segments.
Over the past year, Eximbank significantly increased interest rates across various terms and continued to launch multiple savings products, namely the Customer Gratitude Programme, Eximbank VIP Savings, Elective Term Savings, Happy Birthday with Eximbank, and Online Savings, to name but a few.
Additionally, Eximbank launched the Visa Direct service, a breakthrough in redefining cross-border financial transactions.
At the same time, the bank proactively diversified revenue sources from non-credit activities, such as payment services, foreign exchange trading, and gold trading, with effective bad debt handling.
By the end of 2024, the bank’s total assets had grown by 18.9 per cent, reaching $9.58 billion. Its outstanding credit balance increased by 19.7 per cent.
Net service income rose by 110.1 per cent compared to 2023, reaching $43.2 million, while foreign exchange trading income increased by 38.7 per cent, amounting to $27 million.
The fresh report reflects that Eximbank has effectively controlled safety indicators in its operations as per the State Bank of Vietnam's (SBV) regulations amid the complex economic situation.
The ratio of short-term funds used for medium- and long-term loans was maintained at around 24-25 per cent, lower than the SBV's maximum limit of 30 per cent.
The loan-to-deposit ratio was maintained between 82-84 per cent, under the SBV’s 85 per cent cap, while the capital adequacy ratio ranged between 12-13 per cent, significantly above the 8 per cent regulatory minimum.
Currently, instead of relying solely on credit packages with preferential interest rates, Eximbank has proactively restructured its asset and capital structure to improve its net interest margin.
This approach has enhanced business efficiency and profitability, and mitigated risks and contributed to a stable financial environment for both customers and the banking system.
Strategy focused on import-exports
As a bank specialising in supporting import-export transactions, Eximbank’s profit growth reflects the high demand for financial services in international trade.
The bank has introduced several attractive products and services, such as Eximbank EBiz, a digital platform that enables SMEs to request online guarantees anytime with automated security optimisation, reducing financial pressure.
To facilitate efficient operations for import-export businesses amid global market volatility, Eximbank launched a preferential USD loan interest rate scheme.
Along with this, new corporate customers with no prior credit relationship with the bank can still enjoy an interest rate as low as 3.7 per cent per year, while existing credit clients are offered rates starting from 3.8 per cent per year.
With these key initiatives, Eximbank aims to help businesses enhance competitiveness, optimise financial costs, and boost export-import activities in the upcoming period.
Technology as a driving force
Since 2023, Eximbank has strongly invested in technology with the goal of being modern, green, safe, and secure.
The bank has prioritised deploying digital projects across the entire system, while standardising and optimising management, operational, and business processes to enhance service quality.
At the same time, the bank is striving to best avail of technology advantages to innovate products and services to meet the burgeoning needs of the market and customers.
Eximbank is accelerating its digital transformation journey with the goal of offering a diverse range of high-quality financial products, continuously enhancing customer experience, and expanding its customer base.
The continuous launch of digital products and services, well-received by the market in recent years, along with a strong upgrade in customer experience, are the initial achievements of Eximbank's digital transformation strategy.
Breakthrough potential
In 2024, the SBV approved Eximbank’s charter capital increase to $747.5 million, strengthening its financial capacity, expanding operations, and improving its ability to meet international capital adequacy standards.
This year marks Eximbank’s first dividend payout in a decade, along with a groundbreaking decision to expand its presence to the northern region of Vietnam, aiming for nationwide coverage.
After 35 years, with new perspectives, strategies, and markets, Eximbank is shaping a fresh direction for its future growth.
By leveraging comprehensive and flexible solutions, the bank is seizing opportunities, enhancing competitiveness, and improving transparency and efficiency, gearing towards sustainable development.
