ACB ranked highest on the Credit Rating table

Recently, the Credit Rating Council of FiinRatings - an independent and prestigious domestic credit rating agency - announced the results of the first Credit Rating for ACB as follows: The Long-Term Issuer Credit Rating is at 'AA+' with a rating outlook of 'Stable'. With this result, ACB is currently ranked highest among the Banks that have been rated by domestic organizations, just 1 level below the highest score of AAA.

FiinRatings said that this rating is based on many strict assessment criteria, ensuring transparency and independence in the assessment process . ACB achieved a high credit rating thanks to its solid business position, stable capital profile, good profitability and prudent risk appetite. In addition, the Bank's capital mobilization and liquidity are also expected to continue to benefit from the increase in highly stable capital sources, creating favorable conditions for credit growth and liquidity stability.

ACB's factors are rated by FiinRatings from "suitable" to "very good", specifically:

• With a business position of 'Good', ACB has consistently maintained its leading position among the top private commercial banks in Vietnam, with a diversified business model and high stability, supported by the prudent development and management strategy of the Bank's Board of Directors. As of the end of the second quarter of 2024, ACB is among the largest commercial banks in Vietnam with a market share of gross outstanding loans (VND 550.2 trillion) and customer deposits (VND 511.7 trillion).

• Capital structure/leverage is assessed as “Appropriate” based on the relatively high capital adequacy ratio (CAR) compared to the industry median, the increase in Tier 1 capital in the capital structure as well as recent efforts to improve financial leverage. ACB's capital buffer is assessed as appropriate given the Bank's scale of operations. At the end of Q2/2024, ACB had a CAR of 11.8%, ranking 3rd among joint stock commercial banks of the same size.

• Profitability is rated at “Good”, reflected in the Bank’s profitability indicators such as NIM and ROA at levels that are superior to the industry average, supported by a customer lending strategy focusing on SMEs, MMLC, and effective operating cost management.

• The risk position is at “Very Good” and the rating has been increased by 02 notches, reflecting the Bank’s relatively cautious risk appetite, demonstrated through (i) a somewhat cautious lending and investment policy, (ii) a target retail customer segment with a relatively low level of concentrated risk, (iii) a credit growth strategy that emphasizes asset quality, and (iv) outstandingly better debt recovery rates and bad debt ratios. The Bank’s internal risk control criteria are assessed by FiinRatings as relatively comprehensive in terms of risk management, with a clear and transparent governance structure.

• ACB’s capital and liquidity are rated ‘Good’ thanks to the Bank’s ability to diversify its capital structure and focus on more stable sources of funding compared to the industry average. ACB’s liquidity position is also rated ‘Good’, supported by its ability to mobilize capital that is somewhat superior to the industry average. The Bank’s short-term liquidity sources are sufficient to meet short-term capital needs and the liquidity reserve plan is rated as appropriate compared to reality.

FiinRatings' credit rating results reflect ACB's solid position and strong growth potential in the Vietnamese banking industry, helping ACB easily access international capital sources, as well as increase brand reputation and trustworthiness among investors, shareholders and customers. Previously, Fitch Ratings also announced the results of maintaining the BB- rating for ACB based on asset quality, profitability, risk management capacity - among the highest- rated joint stock commercial banks in Vietnam. Fitch assessed that ACB has good loan quality, stable credit profile when focusing on retail lending. With positive rating results from domestic and foreign rating organizations, ACB affirms its stable financial capacity along with strong growth prospects. This is not only a competitive advantage, helping customers feel secure in their transactions, but also an important factor in attracting and retaining long-term investors who are always looking for safety and efficiency in their investments.

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Source: https://acb.com.vn/ve-chung-toi/acb-xep-hang-cao-nhat-tren-bang-danh-gia-xep-hang-tin-nhiem