ACB completed 50% of the yearly plan, promoting preferential loans to accompany customers

Effective business operations

As of the end of June, ACB's credit scale reached over 434 trillion VND, up 4.9% compared to the beginning of the year. In the second quarter alone, the growth rate improved strongly, at 5.5%, equivalent to nearly 23 trillion VND compared to the first quarter.

With interest rates rising from the end of 2022, putting pressure on customers' ability to repay debts, it has contributed to the increase in bad debt ratios at banks. ACB's bad debt was also affected by the general market situation, increasing to 1.07% but is still one of the banks with the lowest bad debt ratios in the market.

In the first 6 months of 2023, ACB completed 50 plans to promote preferential loans to accompany customers. Image 1

Mobilization scale recorded better growth than the whole industry, with the scale reaching 432 trillion VND by the end of June, up 4.5% compared to the beginning of the year. In particular, the CASA ratio, although still low compared to the beginning of the year, has shown positive signs when it increased again after a continuous decline since the second quarter of 2022. The CASA ratio increased to 20.9% from 19.8% at the end of the first quarter.

ACB strived to stick to its business targets by completing 50% of its annual profit plan, reaching VND10 trillion. The major driving force for ACB's profit growth came from non-interest income, which increased by 28% over the same period. The contribution of non-interest income to revenue continuously increased from 19% to 22%, reducing pressure on interest income. In particular, card services, foreign currency trading and investment activities contributed greatly to revenue growth in the first 6 months of the year.

In addition to effective business results, ACB always prioritizes compliance with liquidity safety ratios as prescribed by the State Bank. Specifically: LDR ratio reached 79% (below the prescribed 85%), Short-term capital ratio for medium and long-term loans accounted for 19% (much lower than the prescribed level of 34%). Individual capital safety ratio far exceeded the minimum prescribed level, at 12.4%.

Accompanying customers, promoting business recovery

ACB always accompanies customers to overcome difficult business periods, moving towards economic recovery. ACB has implemented many solutions to save costs. Specifically, ACB effectively controlled operating costs, helping to maintain operating costs compared to the same period in 2022 while revenue grew by 16%. As a result, the CIR ratio improved to 31%, down from 36% in the first half of 2022. At the same time, ACB diversified mobilization channels, making efforts to reduce average mobilization interest rates.

In the first 6 months of the year, ACB has issued preferential programs and interest rate support for individual and institutional customers to share and accompany customers to overcome difficulties, with a total interest rate support amount of nearly 500 billion. In addition, ACB has also drastically implemented timely support programs under the direction of the State Bank through the 2% interest rate support package with a total disbursement of more than 1.5 trillion; or restructured the repayment period and maintained the debt group according to Circular 02 for 117 customers with a total outstanding debt of 1.2 trillion after only 2 months of implementing the program.

ACB's digital banking activities have also been extremely exciting when launching many new products and utilities such as launching Urbox linked card to accumulate points to redeem gifts; launching ACB Lite Automatic Bank applying new technology, serving 24/7, providing outstanding services such as opening payment accounts using eKYC and Video Call technology, fast issuance of Visa Debit cards, etc. On July 25, ACB continued to launch the second transaction point of ACB Lite Automatic Bank at Vinhomes Grand Park, District 9, Ho Chi Minh City, helping customers to proactively manage transaction time, conveniently and with diverse utilities.

In the first 6 months of 2023, ACB completed 50 plans to promote preferential loans to accompany customers, image 2 — ACB lite - District 9, HCMC.

Thanks to a drastic digital transformation strategy, the number of new customers of ACB in the second quarter grew strongly, up 50% compared to the first quarter. Of which, the number of customers developed through online channels in the second quarter doubled compared to the first quarter.

ACB's average income per employee remains at a good level in the market.

Income per employee has improved over the years, currently reaching an average of 466 million/year, increasing by 12% per year over the past 5 years. This income level ranks 4th in the group of banks with the best income in the market. The average revenue per employee increases by 15% per year, while the bank only increases the number of employees by 5% per year, showing an improvement in operating performance over the years.

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