ABBANK reported pre-tax profit of 252 billion VND

DNVN - ABBANK's pre-tax profit for the first 9 months of 2024 reached VND 252 billion. The profit level was lower than expected because the bank increased its provisioning according to actual developments as well as the general context of total market demand being negatively affected by natural disasters.

As of September 30, An Binh Commercial Joint Stock Bank (ABBANK) recorded an increase in the number of transactions on digital banking channels and growth in outstanding loans. Capital ratios continued to be guaranteed according to regulations.

ABBANK's total assets at the end of the third quarter of 2024 reached VND 164,115 billion, up 8% compared to the end of the second quarter of 2024, up 1.3% compared to the beginning of the year; Total mobilization reached VND 147,018 billion, up 8.8% compared to the second quarter, up 1.6% compared to the beginning of the year; total outstanding loans increased by 6.3% compared to the second quarter and up 3.5% compared to the beginning of the year. Capital adequacy ratio (CAR) reached 11.02%.

ABBANK has recorded many positive results from digital transformation with the number of transactions per customer increasing steadily since the beginning of the year. In the third quarter of 2024 alone, the number of digital banking transactions of customers at ABBANK increased strongly with individual customers increasing by 47% compared to the second quarter and 82% compared to the same period in 2023; with corporate customers increasing by 248% compared to the second quarter and 145% compared to the same period last year.

ABBANK's bad debt ratio as of September 30, 2024 continues to be tightly controlled, maintained below 3%.

The number of online transactions of corporate customers has increased because ABBANK has started to introduce to customers the completely new ABBANK Business Digital Banking platform with many convenient features, effectively supporting corporate financial management.

In the third quarter of 2024, ABBANK also achieved a profit from service activities of VND 290 billion, an increase of 43% compared to the end of the second quarter of 2024. ABBANK's bad debt ratio as of September 30, 2024 continued to be strictly controlled and maintained below 3% according to the provisions of Circular No. 11/2021/TT-NHNN of the State Bank of Vietnam (SBV).

In order to be more proactive and cautious in credit granting activities, ABBANK has set aside VND 1,166 billion for credit risk provisions, with a bad debt coverage ratio of 53%, along with a portfolio of high-value collateral assets.

ABBANK's pre-tax profit for the first 9 months of 2024 reached VND 252 billion. The profit level was lower than expected because the bank increased its provisioning according to actual developments as well as the general context of total market demand being negatively affected by natural disasters.

In order to support customers affected by Typhoon Yagi, in September 2024, ABBANK announced a reduction in lending interest rates of up to 1.5%/year for individual customers with production and business loans at the Bank and a maximum interest rate reduction of 1%/year for existing SMEs customers.

Nguyen Duc

Source: https://doanhnghiepvn.vn/kinh-te/tai-chinh-ngan-hang/abbank-bao-lai-truoc-thue-252-ty-dong/20241031073527752