Moody’s upgrades ABBank’s outlook from stable to positive

Moody’s upgrades ABBank’s outlook from stable to positive

Moody's Ratings has upgraded the outlook on the ratings of An Bình Commercial Joint Stock Bank (ABBank) to positive from stable, reflecting expectations that a planned capital raising in 2026 will strengthen the bank’s credit profile.

Moody's Ratings has upgraded the outlook on ABBank’s ratings to positive from stable. — Photo courtesy of the bank

At the same time, Moody’s affirmed ABBank’s B2 local and foreign currency long-term bank deposit and issuer ratings, along with its b3 Baseline Credit Assessment (BCA) and adjusted BCA.

The agency also affirmed the bank’s B1 long-term foreign and local currency counterparty risk ratings and B1 long-term counterparty risk assessment.

According to Moody's, the change in ABBank's rating outlook reflects a moderate improvement in its asset quality and profitability.

ABBank’s problem loan ratio, including non-performing loans (NPLs) and gross bonds issued to the Vietnam Asset Management Company, declined to 2 per cent as of December 31, 2025, from 7.5 per cent a year earlier, driven by substantial recoveries of its legacy bad debts and effective control over the formation of new NPLs.

The bank's profitability improved markedly, with annualised return on tangible assets rising to 1.3 per cent in 2025 from 0.3 per cent in 2024, largely supported by bad debt recovery.

Despite these significant gains, Moody’s highlighted the challenges and conditions required for ABBank to secure a formal upgrade in the future. The agency could raise the bank’s ratings and BCA if ABBank successfully increases its equity capital, thereby improving its tangible common equity to risk-weighted assets ratio, while sustaining asset quality and profitability.

Moody’s assessment is further reinforced by ABBank’s business performance and strategic initiatives throughout 2025 and early 2026.

The year 2025 was described as a bumper year for ABBank, with strong and sustainable operating growth. The bank reported pre-tax profit of VNĐ3.5 trillion (US$135.4 million), achieving nearly 200 per cent of its full-year target.

Beyond the solid financial results, Vũ Văn Tiền, chairman of ABBank, said the capital increase not only strengthens the bank’s financial foundation but also reflects the confidence of regulators and the market. He described it as a crucial step in preparing ABBank for a new growth cycle, positioning the bank to meet the anticipated rebound in credit demand from 2026 onwards. 

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