ACB in 2024: Breakthrough growth, effective risk management

By the end of 2024, despite facing many challenges, ACB still maintained stable growth, affirming its leading position in asset quality. Thanks to its flexible business strategy, commitment to innovation and industry-leading risk management capacity, ACB continues to be a trustworthy financial institution for shareholders, investors and customers.

Outstanding credit growth, top in quality In 2024, ACB's credit activities reached VND581 trillion, up 19.1% compared to the beginning of the year, far exceeding the industry's average growth since 2016. ACB maintained stable credit growth, ensuring the quality of its loan portfolio by focusing on low-risk areas. With more than 90% of its loan portfolio belonging to retail customers, ACB implemented an effective risk diversification strategy, creating a difference from many other banks in the industry. Corporate credit increased by 25% in 2024, helping ACB ensure a balance between the individual and corporate segments. By the end of the year, ACB's bad debt ratio (excluding CIC) reached 1.39%, among the banks with the lowest bad debt ratio. Since 2015, ACB's bad debt ratio has always been significantly lower than the Top 10 banks with the largest total assets in the system. Capital mobilization has grown steadily with credit. ACB's mobilized capital has been effectively managed, ensuring a balance with credit growth. The bank has promoted digital transformation, improved products and services, and expanded mobilization channels, thereby increasing the total mobilization scale, including the issuance of valuable papers, estimated at VND 639 trillion, up 19.4% compared to the beginning of the year. Of which, customer deposits are estimated at more than VND 537 trillion, up 11.3%, with the CASA ratio reaching 23%, an improvement compared to the 22.2% level of the third quarter. The increase in the CASA ratio shows the increasing level of trust of customers in ACB. The bank has implemented solutions to increase deposit attraction, including the "Smart Ally" campaign to support business households with store management utilities; upgrading high-end financial services for priority customer groups. Thanks to that, ACB has successfully mobilized stable and long-term capital sources, contributing to improving the capital structure and supporting sustainable business operations.

Effective risk management - Foundation for sustainable growth ACB is recognized as one of the banks with the most comprehensive risk management system and the most prudent principles in the Vietnamese banking system. This management system not only helps ACB strictly control risks but also creates a solid foundation for safe and stable growth over the years. It is expected that by the end of 2024, ACB's consolidated capital adequacy ratio (CAR) will continue to be maintained at over 12%, much higher than the minimum level of 8% prescribed by the State Bank. The risk coefficient for assets is stably controlled at around 70%, among the lowest in the industry. ACB also proactively reviews and adjusts credit policies, ensuring compliance with market developments and minimizing potential risks. Liquidity indicators are always kept at a safe level with the LDR (loan to deposit) ratio reaching 78%, while the ratio of short-term capital to medium and long-term loans remains at around 20%. ACB's risk management system is continuously upgraded according to international standards, including Basel II and Basel III. This is confirmed by PwC - one of the world's four leading auditing firms - in the period of 2022 - 2023. ACB is continuing to improve and enhance governance standards, meeting increasingly stringent requirements from the State Bank and the Basel Committee, aiming to apply the most advanced governance methods. With a ROE (return on equity) ratio maintained at over 20%, ACB not only leads the banking industry but also demonstrates high and sustainable profitability. The combination of impressive profitability and low bad debt ratio reflects the bank's long-term development strategy and solid foundation. Positive assessments from credit rating agencies Outstanding achievements in 2024 have helped ACB receive positive recognition from international and domestic credit rating agencies. These assessments clearly reflect the bank's sustainable profitability, effective risk management and long-term growth potential. Fitch Ratings, one of the world's leading credit rating agencies, has upgraded ACB's outlook from "Stable" to "Positive". This demonstrates confidence in the bank's asset quality improvement in the next 12 - 18 months, thanks to a favorable economic environment, rigorous appraisal processes and effective risk control measures. In addition, Moody's and independent credit rating agency FiinRatings also recognized ACB's stable profitability and prudent risk management strategy. Not only that, ACB has also been honored with many prestigious awards. Notably, ACB was awarded the "Best Corporate Governance Bank in Vietnam 2024" and "Best Commercial Bank in Vietnam 2024" by Global Banking and Finance Review. In addition, ACB was also in the "TOP 3 Financial Large Cap with IR activities most highly appreciated by Financial Institutions" organized by Vietstock, VAFE Association and FiLi Magazine; "TOP 50 Best Listed Companies in Vietnam 2024" by Forbes; and "TOP 50 Most Effective Companies in Vietnam 2024" by Nhip Cau Dau Tu. In December, ACB continued to affirm its position when it was awarded the title "Leading Bank in Total Card Transaction Volume 2024" by VISA international card organization. This award clearly reflects the breakthrough in the bank's card business activities over the past year. Source: https://thanhnien.vn/acb-nam-2024-tang-truong-but-pha-quan-tri-rui-ro-hieu-qua-185250107085912529.htm