Overcoming challenges to make a mark of success
In 2024, Agribank's business activities faced many difficulties and challenges in the general context of the economy. However, closely following the direction of the Government and the State Bank of Vietnam (SBV), the entire Agribank system united and made efforts to overcome difficulties, successfully completing the tasks and business plans assigned by the SBV, maintaining stable and developing business activities, effectively supporting people and businesses to overcome difficulties, restore production, actively contributing to promoting economic growth and stabilizing the financial and monetary system. 2024 marked the success of Agribank with the highest results in implementing business targets after 4 years of implementing the Agribank restructuring plan associated with bad debt settlement in the period of 2021-2025.
In 2024, Agribank's business activities achieved the highest results after 4 years of implementing the Restructuring Plan associated with bad debt settlement for the period 2021-2025.
By the end of 2024, Agribank's total assets will reach over VND 2.2 million billion, an increase of nearly 10% compared to the end of 2023; Capital will reach over VND 2 million billion, an increase of 7.6%; Outstanding loans will reach over VND 1.72 million billion, an increase of 11%. In parallel with credit growth, Agribank has resolutely directed the implementation of solutions to control and handle bad debt recovery. By December 31, 2024, the on-balance sheet bad debt ratio according to Circular 31 will be 1.55%; The ratio of on-balance sheet bad debt, potential bad debt, and bad debt sold to VAMC that has not been handled has decreased to below 3.2%, down nearly 3% compared to the end of 2021. In the context of many banks reducing their bad debt coverage ratio, Agribank increased by 1.2% compared to the beginning of the year at 131.1%, creating a thicker buffer to help banks proactively respond when risks arise. In addition, service revenue reached VND 8.6 trillion; Pre-tax profit increased by over 9%; State budget contribution for the 2021-2024 period reached over VND 45 trillion. The main indicators according to the Basic Restructuring Plan were basically completed (growth in capital sources, outstanding debt, collection of risk-handled debt, growth in pre-tax profit); Major solutions to improve the efficiency of administration and management, reorganize the network, improve asset quality, develop products and services, modernize the information technology system... are being implemented on schedule.
Over the past year, Agribank continued to effectively implement 07 policy credit programs, national target programs on new rural construction, sustainable poverty reduction and socio-economic development in ethnic minority and mountainous areas. Agribank implemented many loan interest rate reductions, seriously publicized interest rates according to the direction of the State Bank; implemented 17 preferential interest rate credit programs with a total scale of 457 trillion VND for various customer groups. Accordingly, credit growth in 2024 is higher than the target set at the beginning of the year and much higher than the growth rate in 2023.
Aiming at the goal of Digital Banking and modern retail banking, Agribank maintains the provision of more than 220 convenient and modern products and services for all customer segments; develops diverse capital channels to "Tam Nong" areas, remote areas, islands, serving the payment needs of more than 23 million customers opening accounts and about 3 million customers borrowing capital; together with the banking industry, pioneers in the digital transformation process, promoting non-cash payments; strongly deploys solutions to enhance security and safety in digital space, collects and cleans customer data according to the direction of the Government and the State Bank with the largest number of customers and online transactions in the system.
Agribank takes the lead in promoting green credit, towards a green and sustainable economy
Agribank continues to take the lead and actively implement the National Comprehensive Financial Strategy, contributing to bringing financial and credit services to people in agricultural and rural areas; Take the lead in implementing the action program of the Government and the banking sector on implementing the National Strategy on green growth, promoting green credit, practicing ESG, towards a green and sustainable economy. In 2025, with the excellent achievement of the Special Award "Green Bank for Green Life", Agribank continues to affirm its role as a pioneering and leading bank in implementing Vietnam's green transformation goals.
In addition to business activities, Agribank always promotes the social responsibility of "Bank for the community". In the context of many economic difficulties, from financial resources and the response of nearly 40,000 officers and employees of the entire system, in 2024, Agribank supported nearly 700 billion VND to implement social security activities, focusing on the fields of education, health; building houses of gratitude, solidarity houses; poverty reduction; gratitude; overcoming the consequences of natural disasters, storms and floods... In the face of the severe impact of storm No. 3 and historic floods, Agribank proactively responded, ensuring smooth operations, promptly grasping the situation, implementing solutions to restructure debt repayment terms, reduce loan interest rates, make new loans, and together with the banking industry and the political system quickly support customers, businesses, and people to stabilize their lives and rebuild production and business activities. On the occasion of the Lunar New Year 2025, Agribank will spend more than 100 billion VND to implement a social security program to support the poor and policy beneficiaries nationwide to have the conditions to celebrate the traditional New Year of the nation fully and warmly...
From the achieved results, Agribank's reputation and brand continue to be enhanced. Agribank is honored to be ranked at the top of the domestic commercial banking system, TOP 50 largest enterprises in Southeast Asia according to Fortune's rankings; continues to be ranked Ba2 by Moody's, Stable outlook and BB+ by Fitch Ratings, Stable outlook, equivalent to the national credit rating and the highest rating for Vietnamese banks.
Strong internal strength to develop with the country
Entering 2025 is a decisive year to complete the goals of the 5-year socio-economic development plan 2021 - 2025, the year of holding Party Congresses at all levels, moving towards the 14th National Party Congress and towards a new era, an era of national development. Our Party has identified the basic goals and tasks to enter the new era as follows: Continuing to firmly grasp the two strategic tasks of building socialism and defending the Fatherland, strengthening the building and rectification of the Party and the political system to be clean and strong in all aspects; promoting the strength of culture, people and the great national unity bloc combined with the strength of the times; promoting innovation, creativity, rapid and sustainable development of the country; striving to become a developing country with an upper middle income by 2030; and a developed country with a high income by 2045. These are solid premises for the country to step into a new era of growth, a peaceful, independent, democratic, prosperous, happy Vietnam, steadily moving towards socialism.
Agribank continues to effectively implement solutions to ensure completion and over-fulfillment of approved targets.
In the context of the world and domestic situation in 2025, it is forecasted that there will be both advantages and difficulties. The global economy is forecast to maintain a fairly positive growth rate, inflation tends to decrease, and central banks of major countries continue to ease monetary policy (CSTT). In addition to favorable factors, the world situation is forecast to have many complex and unpredictable developments, especially geopolitical conflicts that may continue to last, the risk of trade protectionism increases...; The domestic economy continues to achieve positive results, but is subject to "double negative impacts" from unfavorable external factors and internal limitations and shortcomings. In 2025, the State Bank of Vietnam plans to continue to operate monetary policy proactively and flexibly, closely coordinating with fiscal policy, contributing to promoting economic growth while stabilizing the macro-economy, controlling inflation with a credit growth target of about 16%. Based on the forecast of the socio-economic situation, promoting the results achieved in 2024, from the beginning of 2025, the Party Committee of Agribank issued a Resolution on the tasks of work in 2025 (Resolution No. 63-NQ/DU-NHNo dated January 2, 2025), the Board of Members issued a Resolution on the main targets, tasks and solutions in 2025 (Resolution No. 01-NQ-HDTV dated January 6, 2025) as a basis for units in the whole system to continue implementing the solutions being implemented according to the roadmap, ensuring the completion and over-fulfillment of the approved orientation targets. Accordingly, 2025 is determined to be the year for the entire system to focus resources, make maximum efforts, and be determined to comprehensively complete the business targets assigned by the State Bank, the goals and targets of the Agribank restructuring plan associated with bad debt settlement for the period 2021 - 2025, the Resolution of the 10th Congress of Agribank Party Delegates, term 2020 - 2025 and the Agribank Development Strategy Project to 2025, with a vision to 2030, creating a premise for sustainable development in the next period, striving to be in the Top 100 strongest banks in Asia. In addition, review and complete the risk management system, the system of institutional documents to meet the requirements of business operations, risk management and compliance with legal regulations, especially the Law on Credit Institutions 2024 and guiding documents.
In 2025, Agribank will continue to focus on controlling credit quality, limiting bad debt occurrence; promoting the handling and recovery of bad debt and problem debt to reduce the ratio of bad debt on the balance sheet, bad debt sold to VAMC that has not been handled or recovered, and potential bad debt. Continue to deploy and promote the effectiveness of restructuring and arranging the network of branches and transaction offices towards optimizing the existing network, in accordance with Circular No. 32/2024/TT-NHNN to improve the quality and efficiency of operations, especially in Hanoi and Ho Chi Minh City. Raise awareness, make breakthroughs in innovation, strongly promote digital transformation, innovation, and application of information technology in operations and fields of operation. Promote the effectiveness of capital management and balance management through planning mechanisms and internal capital transfer tools (FTP) to optimize capital use, increase financial capacity and comply with operational safety ratios. Resolutely implement the practice of thrift and anti-waste in operations, especially in the implementation of operations due to internal procedures and coordination between units and apparatus. More effectively implement measures to improve operational discipline and discipline in the spirit of "rule of law", promptly detect, prevent and handle existing problems and risks in the operation process.
2025 is the final year to implement the goals of the Agribank restructuring plan associated with bad debt settlement for the 2021 - 2025 period, the Resolution of the 10th Agribank Party Congress, term 2020 - 2025, therefore, the successful implementation of the goals and tasks of 2025 in particular and the 2020-2025 term in general is the basis for Agribank to build the goals and targets of the 11th Agribank Party Congress, term 2025 - 2030, towards the 14th National Party Congress - the time determined to start a new era of the nation, marking 40 years of national renewal (1986 - 2026) . From now on, all Vietnamese people, hundreds of millions of people as one, under the leadership of the Party, will unite, join forces, make the most of opportunities and advantages, push back risks and challenges, and bring the country to comprehensive and strong development, breakthrough and take off.
Over the past nearly 40 years, in the great victories of the country's historic renovation, creating new positions and strengths, new foundations, potentials, status, and international prestige of Vietnam, Agribank with its proud mission of "Tam Nong" and the journey of nearly 37 years of construction and development has made important contributions, together with the Party, State and People, to clearly change the face of the country, significantly improving the material and spiritual life of our people.
With the internal strength from the achievements over nearly 4 decades as a solid foundation for Agribank to confidently step into 2025 and be ready for a new development stage in the new era of the nation. In the face of difficulties and challenges but also the opportunities of a new revolutionary journey full of pride for our nation, all Agribank staff and employees, for the development of the system and the industry, continue to promote the tradition of solidarity, sharing, and consensus to overcome all difficulties and challenges, in the spirit of the highest effort to implement resolutely and effectively, strive to best fulfill the assigned tasks and responsibilities, contributing to enhancing the position of Vietnam's leading commercial bank on the regional and world financial map, together with our country and people to realize the aspiration to develop a prosperous and happy country and enter a new era - the era of the Vietnamese people's rise.
Nhat Minh
Source: https://www.agribank.com.vn/vn/ve-agribank/tin-tuc-su-kien/tin-ve-agribank/hoat-dong-agribank/agribank-vung-tin-cung-dat-nuoc-buoc-vao-ky-nguyen-moi
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