​​​​​​​ABBANK targets 131% increase in profits in 2025

​​​​​​​ABBANK targets 131% increase in profits in 2025

An Bình Commercial Joint Stock Bank targets a whopping 131 per cent increase in pre-tax profits to VNĐ1.8 trillion (US$70.2 million) in 2025, according to documents it released ahead of its annual general meeting this month.

An ABBANK branch in HCM City. The lender targets VNĐ1.8 trillion (US$70.2 million) in pre-tax profits for 2025, 131 per cent up from 2024. — Photo courtesy of the bank

ABBANK, as the lender is commonly known, will seek shareholder approval for this and other key targets, including 5 per cent and 16 per cent increases in deposits and loans outstanding to VNĐ115.5 trillion and VNĐ127.8 trillion and a 13 per cent rise in total assets to VNĐ200 trillion ($7.8 billion).

The bank hopes to keep tight control over the non-performing loan (NPL) ratio so that it remains below the 3 per cent stipulated by the State Bank of Vietnam.

It plans not to distribute cash dividends for 2024 and use the entire undistributed profit of VNĐ 2.3 trillion ($89.7 million) to supplement capital for implementing its strategic plans.

At the AGM, it will also seek shareholders’ approval for changes to the board of directors for the 2023-27 term with a Maybank representative to be replaced and an independent director resigning for personal reasons.

In January its strategic foreign shareholder, Maybank, nominated Syed Ahmad Taufik Albar as replacement for John Chong Eng Chuan on the board.

The bank’s audited financial statements for 2024 show loans outstanding grew by 7.47 per cent to VNĐ110.1 trillion and deposits and the issuance of valuable papers edged down to VNĐ109.96 trillion.

Total assets topped VNĐ176.6 trillion, up 9.04 per cent from 2023.

The lender made risk provisioning of over VNĐ1.4 trillion.

Pre-tax profits jumped by 51.68 per cent to VNĐ779 billion, and the NPL ratio was 2.48 per cent, well below the central bank’s benchmark.

The bank accelerated digital transformation, enhancing support for cashless payments and remote transactions.

It launched the ABBANK app for individuals and ABBANK Business for corporate clients, driving an 11.8 per cent rise in digital banking users and a 70.08 per cent increase in transaction volume.

Last year ABBANK also reviewed and restructured its business model, enhancing risk control based on McKinsey's strategic advice and analysing and evaluating its operational efficiency. 

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