ACB completes all 2023 business targets, growth higher than industry average

This result demonstrates the ability to adapt and be flexible to the continuous changes of the market as well as strictly comply with the management directions of the State Bank and the Government.

100% plan completion, impressive growth

In 2023, ACB's consolidated pre-tax profit will reach more than VND20 trillion, completing 100% of the annual plan, up 17.3% compared to 2022. ACB's profit growth mainly comes from non-interest income, which increased by 48% over the same period. The contribution of non-interest income to revenue is 24%, thereby reducing the pressure on interest income. In particular, foreign exchange trading services and investment activities contribute greatly to ACB's income growth. The ROE ratio is nearly 25%, continuing to be one of the most efficient banks in the industry.

By the end of 2023, ACB's credit scale reached nearly 488 trillion VND, up 17.9% compared to the beginning of the year, higher than the industry average of 13.7%. This is the highest credit growth rate in the past 10 years thanks to flexible lending policies according to the market situation, along with many incentive programs and interest rate support, including a credit package of 50,000 billion VND with preferential interest rates reduced by up to 3%/year to help customers overcome difficulties. ACB also implemented timely support under the direction of the State Bank through the 2% interest rate support package with a total disbursement of nearly 1.9 trillion VND; or restructured debt repayment terms and maintained the debt group according to Circular 02 with a total outstanding debt of 2.2 trillion VND.

ACB's mobilization scale in 2023 reached nearly 483 trillion, up 16.6% compared to the beginning of the year, higher than the growth rate of the whole industry. In particular, the CASA ratio grew strongly and reached the finish line at 22%, ranking in the TOP 5 in terms of CASA ratio of the whole industry.

Cost optimization, effective and safe risk management

Along with the general difficulties of the economy, ACB's bad debt increased to 1.21% in 2023, however, ACB is still one of the banks with the lowest bad debt ratio in the market.

ACB is also the first bank to complete a risk management system related to interest rates and financial markets according to international standards and regulations of the State Bank of Vietnam in Circular 13/2018/TT-NHNN. ACB has completed most of the highly complex contents in the requirements for IRRBB management under Basel III. And ACB aims to continuously improve to maintain its position as the bank with the best risk management model in the market. By the end of 2023, the individual capital adequacy ratio under Basel II will far exceed the minimum requirement, at 12.1%.

ACB complies with the regulations on liquidity safety ratio as prescribed by the State Bank. Specifically, the LDR ratio reached 78% (below the prescribed level of 85%), the ratio of short-term capital for medium and long-term loans accounted for 17% (much lower than the prescribed level of 30%).

Not only completing the business plan effectively and safely, ACB also implemented many solutions to optimize costs. In 2023, ACB's operating costs decreased by 6.3% compared to 2022, thanks to which the CIR ratio improved to 33%, down from 40% at the end of 2022.

In 2023, both Fitch and Moody's rated ACB with a stable outlook based on its assessment of business performance, solid asset quality, good profitability and strong risk management capacity. In December 2023, Fitch Ratings upgraded ACB's Government Support Rating (GRS) from "b+" to "bb-". This action reflects Fitch Ratings' view of the government's improved ability to support the bank in times of need.

Strong digital transformation, 63% of new customers come from online channels

ACB continues to invest heavily in digital transformation activities. Customers can easily access and use digital banking products and services in line with the Government's cashless society orientation. These include the ACB ONE Digital Banking application, the ACB Lite Automatic Banking system, payment solutions for businesses such as ACB One Connect, an upgraded website and AI application, and being one of the few banks providing payment services linked to Apple Pay in Vietnam,... In 2023, the number of customers at ACB increased by 28% compared to 2022, of which 63% of new customers came from online channels. ACB was also awarded 9 awards by Visa in recognition of ACB's outstanding efforts and excellent card business achievements in 2023.

Most recently, International Finance Magazine announced ACB as the bank that won the Best Commercial Bank - Vietnam 2023 award after reviewing and evaluating based on criteria such as market share, innovative products/services, network of operations, technology, security, customer satisfaction, etc. In addition, ACB also won the Best ESG Banking Strategies - Vietnam 2023 award. ACB is the pioneer bank to publish its own sustainable development report in Vietnam. In early January 2024, ACB officially launched a green/social credit package of VND 2,000 billion with many incentives for businesses with production and business plans that are beneficial to the environment and society.

The successes in 2023 are the result of ACB's strong transformation, innovation and rejuvenation of its brand image as well as leading many financial service trends in the market while continuously improving its operational risk management capacity. In 2024, ACB will continue its comprehensive transformation towards the goal of becoming one of the leading transparent and efficient banks in Vietnam.

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