In the context of many challenges in the macro economy, Nam A Bank has promptly implemented the policies of the Government and the State Bank of Vietnam (SBV). With the collective efforts, many important business targets of this bank have "reached the target" of the year's plan, and other targets have also achieved positive growth.

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Customers transact at Nam A Bank

Specifically, as of September 30, 2024, Nam A Bank's total assets reached nearly VND 240,000 billion (up nearly 16% over the same period in 2023, completing 103% of the annual plan); capital mobilization reached nearly VND 173,000 billion (up more than 5% over the same period in 2023, completing 97% of the annual plan), outstanding loans reached nearly VND 164,000 billion (up nearly 24% over the same period in 2023, reaching 102% of the annual plan). These growth targets contributed to Nam A Bank's pre-tax profit reaching more than VND 3,300 billion (up 63% over the same period in 2023, completing 83% of the annual plan)...

Notably, Nam A Bank maintained an average profit of more than VND 1,000 billion/quarter. Net interest income in the third quarter increased by more than VND 1,500 billion, equivalent to an increase of more than 34% compared to the same period in 2023.

This profit can be attributed to the contribution from the digital banking segment. Accordingly, Nam A Bank has continuously upgraded its digital banking ecosystem including: ONEBANK, OPBA robot and Open Banking. In particular, since its implementation, ONEBANK has grown remarkably with a transaction growth rate of more than 40% per quarter. The total capital mobilized from ONEBANK accounts for nearly 10,000 billion VND (accounting for 6% of total mobilization).

As a pioneer bank in the field of green credit, Nam A Bank has deployed a green credit value chain, focusing on the agriculture, aquaculture, and renewable energy sectors, and aims to increase the proportion of green credit to 20-25% (2-3 times the current proportion).

In addition, the bank's ROE, ROA, and NIM ratios have also improved significantly. As of September 30, 2024, the ROE ratio reached 22.09% and ROA was 1.63%, showing that the bank has not only grown in scale but also achieved high profitability.

NIM increased to 3.77% compared to 3.6% at the end of Q2/2024. The bank expects NIM from now until the end of 2024 to remain in the range of 3.5-3.8%, with interest rates remaining low to support individuals and businesses in the context of many economic difficulties.

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Source: Nam A Bank Financial Report

Regarding operating expenses (CIR), as of September 30, 2024, it reached about 40.46%, which is a relatively optimal level. Nam A Bank aims for salaries and benefits to be in the group of 7-10 best banks in Vietnam to attract talent along with increasing network expansion, investing heavily in technology to increase the technology content in products and services. Therefore, in this period, CIR is targeted at about 40-45% to create a premise for the bank to grow strongly in the coming years.

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Source: Nam A Bank Financial Report

In the period from 2020, Nam A Bank has strongly transformed digitally as well as expanded its operations across provinces and cities nationwide. The bank currently has nearly 250 business locations nationwide, including nearly 150 traditional business locations (branches, transaction offices) and 101 ONEBANK locations. Although operating costs have increased, CIR has gradually improved over the years.

Furthermore, the operational safety indicators exceed the regulations of the State Bank. Nam A Bank complies with the liquidity indicators, meeting the criteria of Basel III. The capital adequacy ratio (CAR) is over 11.11% (the minimum prescribed by the State Bank is 8%), the ratio of outstanding loans to mobilized capital (LDR) is 75.72% (the maximum prescribed by the State Bank is 85%), the liquidity reserve ratio (LCR) is 21.11% (the minimum prescribed by the State Bank is 10%), the 30-day payment capacity ratio (VND) is 87.51% (the minimum prescribed by the State Bank is 10%), the ratio of short-term capital for medium and long-term loans is 17.56% (the maximum prescribed by the State Bank is under 30%). Nam A Bank still maintains a stable and safe liquidity strategy.

Regarding the bad debt ratio (NPL) of Nam A Bank, it is around 2.85%. The bank aims to reduce this ratio to 2% and may increase the provisioning by 300-500 billion VND to increase the debt coverage ratio (LLCR) to 55-60%.

In the first 9 months of 2024, Nam A Bank also made many important marks such as: Completing the project of converting financial statements according to international standards (IFRS), contributing to the transparency and health of financial reporting information according to international standards of the bank to investors, especially foreign investors; Moody's upgraded Nam A Bank's credit rating in 2 categories: asset quality from B3 to B2 and profit and profitability indicators from B2 to B1, while rating the issuing organization with a "stable" outlook; The bank completed the handover of the ESMS environmental and social risk management system with Pacific Risk Advisors LTD (PRA), marking an important stepping stone in implementing and perfecting the pillars to reach Level 5 Green Bank; Since the beginning of the year until now, this is the only bank with shares listed on the HoSE...

Huynh Nhu