ABBank of tycoon Vu Van Tien suffered a big loss in the third quarter.

An Binh Commercial Joint Stock Bank (ABBank) has just announced its consolidated financial report for the third quarter with a pre-tax loss of more than VND343 billion, while it still reported a profit in the same period last year.

ABBank just reported a loss in the third quarter of 2024 - Photo: ABB

ABBank increases credit risk provisions

According to the financial report for the third quarter of 2024, ABBank recorded net interest income of more than 737 billion VND, an increase of 14% over the same period last year.

However, other segments of this bank during the period were less favorable. Of which, foreign exchange trading lost more than 46 billion VND, while in the same period it brought in more than 105 billion VND.

Both trading of business securities and investment securities of ABBank were negative with losses of VND 3.7 billion and VND 60.01 billion, respectively.

However, the most notable thing is that ABBank's credit risk provisioning costs in the third quarter of this year amounted to VND525 billion, an increase of more than 2.23 times compared to the same period last year.

Therefore, despite the flat operating costs, ABBank's total pre-tax profit was still negative VND343 billion. After tax, the bank reported a net loss of more than VND284 billion compared to a profit of nearly VND24 billion last year.

Explaining to the Securities Commission, Mr. Nguyen Duy Hieu - General Director of ABBank - said the main reason was due to net loss from foreign exchange trading and an increase in credit risk provisioning costs of 123% over the same period.

In the first 9 months of this year, ABBank recorded net interest income of VND2,192 billion, a decrease but not significantly compared to the first 3 quarters of last year. Profit after tax reached VND180 billion, down 68% compared to the same period.

At the end of September this year, ABBank's total assets recorded 164,194 billion VND, an increase of more than 1% compared to the beginning of the year.

Of which, outstanding customer loans reached VND98,767 billion, up less than 0.7%. This shows that ABBank's credit growth is slowing down compared to the general level of the whole system.

According to the latest data from the State Bank, as of September 30, system-wide credit increased by 9%.

Notably, customer deposits decreased from more than VND100,034 billion at the beginning of the year to VND91,089 billion at the end of September.

Regarding loan quality, by the end of the third quarter of 2024, ABBank's total bad debt on the balance sheet had reached VND3,156 billion, an increase of more than 10% compared to the beginning of the year. Thus, the ratio of bad debt to total outstanding customer loans has increased to nearly 3.2%.

Who holds ABBank capital?

According to the list of shareholders updated to July 31, 2024, ABBank has 19 shareholders owning 1% or more of charter capital.

Of which, Malayan Banking Berhad (Maybank) - ABBank's strategic shareholder - is holding more than 169.6 million shares, equivalent to 16.39% of charter capital.

Next is Geleximco Group holding 132.2 million ABBank shares, equivalent to 12.78%, and people related to the group holding more than 48 million shares, equivalent to 4.65%.

Glexhomes Company also holds 4.43% of ABBank's capital and related parties hold 0.03% of capital. Geleximco Group is the founding shareholder of Glexhomes.

The list of shareholders holding more than 1% of capital does not include the name of Mr. Vu Van Tien - Vice Chairman of the Board of Directors of ABBank. However, Mr. Tien is the Chairman of Geleximco Group.

In addition, Mr. Vu Van Hau, the younger brother of Mr. Vu Van Tien and related people hold nearly 180 million shares, equivalent to 17.41% of ABBank's capital.

Mr. Tien held the position of Chairman of the Board of Directors of ABBank from 2005 - 2018.

However, according to the provisions of the Law amending and supplementing a number of articles of the Law on Credit Institutions, the chairman and general director of a bank are not allowed to concurrently hold equivalent leadership positions at other enterprises.

Currently, the chairman and legal representative of ABBank is Mr. Dao Manh Khang, the brother-in-law of Mr. Vu Van Tien. Ms. Vu Thi Huong, Mr. Khang's wife and Mr. Tien's younger sister, is working as assistant to the chairman of the Board of Directors and assistant to the vice chairman of the Board of Directors.

Source: https://tuoitre.vn/abbank-cua-dai-gia-vu-van-tien-lo-lon-quy-3-20241101095528218.htm