ACB has no M&A plan and will not sell capital at ACBS

Chairman Tran Hung Huy: ACB has no M&A plan and will not sell capital at ACBS

In response to a shareholder's question about ACB having an M&A strategy, Mr. Tran Hung Huy, Chairman of ACB's Board of Directors, said that the Bank has also researched, but has no M&A plan yet.

According to Mr. Huy, through observation, ACB also sees opportunities for M&A, but through research, the Bank realizes that ACB can develop on its own without M&A. At the same time, ACB also has no plans to expand operations abroad.

Mr. Tran Hung Huy, Chairman of ACB Board of Directors.

Regarding ACBS (a securities company under ACB), in previous years, the Bank also intended to sell part of its capital to domestic and foreign investors. Because ACB always wants to promote the development of its subsidiaries to ensure the interests of shareholders, raising additional capital is also necessary.

According to Mr. Huy, there were partners who wanted to invest in ACBS and the Bank also conducted research and negotiations. However, after a period of research, especially during the Covid-19 pandemic, the partners also encountered certain difficulties and ACB realized that it was not suitable, so it pushed ACBS development on its own.

Over the past year, ACBS has increased its charter capital by VND1,000 billion, to VND4,000 billion. The capital contribution comes from the owner, parent bank ACB.

Regarding the bond segment, ACB said it has no investment in corporate bonds. In the bond investment segment, ACB is promoting investment in government bonds.

The Chairman of ACB also said that the Bank is promoting its retail strategy, focusing on individual and SME customers in addition to large corporate customers. In addition, ACB will focus on digital banking in the coming time, with the Bank's annual technology investment cost reaching VND1,000 billion. In particular, the Bank focuses on risk management.

With the profit target set for this year at VND22,000 billion, an increase of 10% compared to 2023. Regarding the dividend rate of 25%, ACB has maintained it for many years and in 2024 the bank also plans to pay at this level. However, according to the Chairman of ACB, with the current difficult market situation, achieving the dividend rate of 25% is also a pressure for ACB.

Source